Charitable giving is one of the more flexible tools in a year-end plan, but “flexible” does not mean “last minute.” Families who wait until the final week of December to fund a gift often find that the mechanics simply do not cooperate.
Why appreciated securities are worth a second look
Donating appreciated stock directly, rather than selling it and donating the proceeds, allows you to avoid recognizing the capital gain on the transfer while still supporting the causes you care about. For families holding concentrated positions, whether from a long-term investment, an inheritance, or years of equity compensation, this is often a more efficient way to give than writing a check. A donor-advised fund adds another layer of flexibility: you can contribute the securities to the fund in one tax year and decide which charities receive grants over time, separating the giving decision from the timing decision.
Where the timeline gets tight
The part that catches people off guard is how long a securities transfer actually takes. Moving shares from a brokerage account into a donor-advised fund requires coordination between your custodian and the receiving institution, and both typically set their own cutoff dates well ahead of December 31 to guarantee same-year processing. A transfer initiated in the last week of the year has a real chance of not settling until January, which means it counts for next year’s giving instead of this year’s.
What to do now
If a charitable gift of securities is part of your year-end plan, the practical step is to confirm the specific shares you intend to give, check with your custodian on their processing timeline, and initiate the transfer with enough buffer to account for delays. This is also a good time to revisit your broader giving strategy with your advisor: whether a donor-advised fund fits your family’s philanthropic goals, how gifting ties into your overall wealth transfer plan, and whether other appreciated assets in your portfolio are better candidates for giving than for selling.
Year-end giving works best when it is planned in November, not attempted in the last days of December. If you are considering a gift of securities this year, now is the time to start the conversation with your advisor and your custodian.
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