So, if they give the stock as a gift to a tax-exempt, nonprofit organization, they're not sacrificing a substantial amount of annual income. In some cases, it may actually be better to give noncash gifts instead of cash gifts. However, Regina likes the idea of owning stock in this particular company, which employed her father for 20 years. To meet all of her objectives, she could go ahead and donate her stock to a nonprofit organization. There would be no concern about taxes on her gain, and she would receive a tax deduction for her donation.
Real estate is another item that can be donated to nonprofit organizations instead of cash.
As an example, consider a widow, Connie, who owns a small home on five acres in a rapidly growing county. Before Connie's husband died, they volunteered their time and gave money to support a local ministry that provided food, shelter, and clothing to people who were homeless or suffering financially. Now, with her health declining and commercial development surrounding her, Connie has decided to sell her house and land and move into an assisted-living facility. To continue supporting herself and the ministry that she and her husband loved, Connie establishes a trust. She chooses a trustee, who sells her house and land.