In some situations, a donor may wish to make a gift of stock in a closely-held corporation. If you own highly-appreciated stock in a company that has significant cash reserves, this may be the best way for you to make a sizeable gift. When closely-held stock is gifted, the donor is usually entitled to receive a charitable income tax deduction for the appraised value of the stock, in an amount up to 30 percent of adjusted growth income. Like gifts of appreciated securities and cash, any excess may be carried over into the next five years. This gift is beneficial because it allows the donor to make a gift without realizing capital gains tax on the appreciated value of the stock, and it allows the corporation to use a potentially taxable cash surplus for philanthropic purposes.