Suppose you have stocks and bonds that are now worth a great deal more than when you acquired them. Giving long-term appreciated securities offers you two tax savings. First, you avoid paying capital gains on the increase in value. Second, you receive a tax deduction for the full fair market value of the stock on the date of the gift. Gifts of securities are deductible up to 30% of your adjusted gross income (and you can carry over any remaining deduction up to five succeeding tax years).
Almost any type of real property such as a personal residence, farm, vacation home, commercial building, or undeveloped parcel of land can constitute a charitable gift.
The property may have so appreciated in value over the years that its sale would result in a sizeable capital gains tax. If the property is given outright, you'll avoid any tax on the gain, reduce your taxable estate by the value of the gift, and receive a charitable contribution deduction for 100 percent of the fair market value of the property. (Or, you can make a gift of your home now to SCCF but continue living there for your lifetime. If you want to continue receiving income from your donation, you can use a Charitable Gift Annuity or a Charitable Remainder Trust, as discussed later.)