Federal Law --and also the laws of the state --encourages gifts to nonprofit organizations, such as the Chatham Historical Society. In general--ignoring commissions, other transaction costs, and the Alternative Minimum Tax and Income Limitations-- Federal law allows a deduction on the full current value of donated appreciated securities (stocks, bonds and mutual fund shares) held for more than one year. For example, if one gives stock worth $10,000 that was purchased for $2,000, one pays no capital gains tax on the $8,000 increase in value, one receives a tax deduction on the $10,000 donation, and the cost to the donor is only 20 cents on the dollar. For many people, this is by far the best way to make significant charitable gifts.