[xur17]

> If you bought an asset and it appreciated you are liable for a tax on capital gains. If you donate this asset that simply eliminates the gain and the associated tax. But this is obviously a thing.

If you donate an asset it eliminates the gain and the associated tax in addition to giving you a tax deduction in the amount of the donation. This is why people like to donate highly appreciated assets rather than selling the asset and donating the resulting funds.