By donating stocks directly to the Humane Society, donors can realize tax benefits. Since the donor does not cash in the stocks, they do not realize the “capital gains” on the stock investment. Capital gains is the difference between the purchase price of the stock and the sales price of the stock. Capital gains are considered as part of income in the year the stock is sold and so is subject to tax. By transferring the stock directly to a not-for-profit organization, capital gains is not part of the donors income and the whole amount makes it to the Humane Society.