Yes, it is one of the few examples of "double dipping" allowed under U.S. tax law. The way it works is, you donate some property (not cash) that has appreciate

Yes, it is one of the few examples of "double dipping" allowed under U.S. tax law. The way it works is, you donate some property (not cash) that has appreciated in value. If you sold the property, you would have long term capital gains income subject to cap gains tax rates (lower than regular rates). But if you donate the property, you get the full appreciated value as a donation deduction, but you never paid the tax on the gain! Example: buy stock for $1, keep it for more than one year and it is now worth $10. Donate it, and you get a $10 charitable donation for something you only paid one after-tax dollar for.