What Are Stock Options? And Do You Want Them?

Transfer to charity
Unlike an ISO, stock acquired through the exercise of a NQSO is not subject to the disqualifying disposition rules and may be transferred to charity at any time. If the transfer occurs within one year after acquisition, the employee will be entitled to a charitable deduction equal to the lower of the fair market value of the stock on the date of contribution to the charitable organization or the fair market value of the stock on the date the option was exercised.