The short answer: yes. And for any appreciated asset held over one year, donating it directly to your church is almost always more biblical AND more tax-efficient than selling and tithing cash.
The biblical case
Scripture's tithing examples were almost never cash. Abraham tithed "a tenth of everything" (Gen 14:20) — spoils of war: livestock, goods, gold. Israelites tithed grain, wine, oil, and the firstborn of livestock (Lev 27:30-32; Deut 14:22-23). The biblical default is to tithe the asset itself, not its liquidation proceeds.
"Increase" (tevuah, Prov 3:9) includes unrealized appreciation. A share of stock that grew from $50 to $500 represents $450 of increase you received, whether or not you've sold it. The firstfruits principle applies.
The tax math (why this matters)
Imagine you bought $1,000 of a stock that's now worth $10,000 (held over a year). You want to tithe $1,000 to your church.
Option A — sell, then tithe cash.
- Sell $10,000 of stock → $9,000 gain → ~$1,800 in long-term capital gains tax (20% bracket) or ~$1,350 (15% bracket).
- You're left with ~$8,200 after tax.
- Tithe $1,000. You keep $7,200.
- Your church receives $1,000.
Option B — donate $1,000 of stock directly to the church.
- You transfer 10% of your shares ($1,000 worth) directly to the church.
- No capital-gains tax — the church (a 501(c)(3)) sells it tax-free.
- You get a deduction for the full $1,000 market value on Schedule A (if you itemize).
- You keep $9,000 of stock and get a ~$220-$370 tax deduction on top.
- Your church receives the full $1,000.
Option B leaves both you AND your church meaningfully better off. Same gift, smarter mechanism.
How to actually do it
- Stocks / ETFs / mutual funds — most churches have a brokerage account (often at Fidelity Charitable, Schwab Charitable, or a denomination-specific giving fund). Ask the finance pastor or treasurer for the DTC transfer instructions and account number.
- Crypto — donate via a platform like The Giving Block or Engiven, which accept BTC/ETH/major altcoins and either send cash to the church or hold the asset for them. Same tax treatment as stock.
- If your church can't receive non-cash gifts — open a Donor-Advised Fund (DAF) at Fidelity Charitable, Schwab Charitable, or the National Christian Foundation. Donate appreciated assets into the DAF (you get the deduction now), then grant cash from the DAF to your church on whatever schedule you want.
Two cautions
- Only works for appreciated assets held over one year. Short-term holdings are deductible only at cost basis, not market value.
- If the asset has lost value, don't donate it — sell it first. Take the capital loss for your own tax purposes, then tithe the cash. Donating a loss asset means you lose the deductible loss.
Apply it
Run our Tithe Calculator to set your annual giving target, then route the firstfruits through appreciated assets when possible.