When you donate stock that has gone up in value and you’ve held it for more than a year, you generally won’t owe capital gains tax on the increase in value. On top of that, you can usually deduct the stock’s fair market value as a charitable contribution, which may reduce your federal income taxes depending on your bracket. Some states also offer additional tax benefits.

Because rules vary, it’s a good idea to check with a tax professional and/or financial advisor to see how this strategy applies to your personal situation.

You can contribute shares of publicly traded companies. If those shares have increased in value and you’ve owned them for over a year, the potential tax advantages are generally the greatest.

Making gifts from retirement accounts like a 401(k) or IRA can be complicated. Taking money out before the required age may lead to taxes or early withdrawal penalties, and in some cases the tax advantages may not be as favorable compared to contributing cash or other assets. It’s best to speak with a tax advisor and/or financial advisor before considering this type of donation.

However, if you are age 70½ or older, you may be able to make a Qualified Charitable Distribution (QCD) directly from an IRA, which can satisfy your required minimum distribution and reduce your taxable income.

If your employer has given you company stock and the trading window is not currently open, your brokerage may not allow the transfer to go through. To avoid issues, check with your company to find out when the trading windows are scheduled. These periods usually open once per quarter and remain available for about three to four weeks.