One of the most effective and often underused strategies is donating appreciated securities to your DAF instead of giving cash.

It’s a smart, tax-efficient way to grow your charitable impact while supporting the causes you care about most.

What Are Appreciated Securities?

Appreciated securities are assets like stocks, bonds, or mutual funds, that you have held for more than one year, which have increased in value since you purchased them. If you sell these assets outright, you’ll likely owe capital gains tax on the increase in value.

But when you donate those securities directly to your Donor Advised Fund, the outcome changes— because you don't realize the capital gains tax!

How a DAF Helps You Give Smarter

When you contribute appreciated securities directly to your DAF at Truman Heartland Community Foundation, you can:

• Avoid paying capital gains tax on the appreciation, AND
• Receive a charitable income tax deduction for the full fair market value of the asset (subject to IRS limits)
• Increase the dollars available for grantmaking, since more of your asset goes to charity—not taxes

In short, it’s often possible to give the same value at a lower personal cost, or give more to charity using the same asset.

Why This Strategy Works So Well with a DAF

Donor Advised Funds are uniquely suited for this type of giving. Once appreciated securities are transferred into your DAF:

• The assets can be liquidated tax-free inside the fund
• Proceeds are available to grant immediately or over time
• You retain the flexibility to support multiple charities, on your timeline

This makes appreciated securities an excellent option for donors who want to be strategic, flexible, and tax-wise—especially around year-end or after a strong investment year.

A Common Example

Imagine you hold stock that has grown significantly over time. If you sell it and donate the cash, a portion of that value goes to capital gains tax first. If you instead donate the stock directly to your DAF, the full value can be used for charitable giving—maximizing impact with the same asset.

For many fundholders, this becomes a cornerstone strategy for ongoing philanthropy.

Is This Right for You?

This approach is especially appealing if you:

• Hold long-term appreciated securities
• Want to rebalance your portfolio
• Are planning a larger charitable gift
• Prefer to give strategically rather than reactively

As always, donors are encouraged to consult their tax or financial advisor to determine what makes sense for their individual situation.

We’re Here to Help

Our team works closely with DAF holders and their advisors to make the process seamless—from accepting appreciated assets to aligning your grantmaking with your goals. If you’re curious whether donating securities could enhance your charitable plan, we’re happy to walk through the options.

Smart giving isn’t about complexity—it’s about using the right tools at the right time to make generosity go further.

For Detailed Questions: Contact Cole Eason

Please contact Cole at Eason@thcf.org or 816-912-4182.