The Tax Benefits of Charitable Giving

Tax Benefits of Charitable Giving

Cash Donations

• Deductible if you itemize
• Up to 60% of AGI for public charities
• Must have a written acknowledgment for donations of $250 or more

Non-Cash Donations

• Donate property, clothing, household items at fair market value
• Items must be in good used condition or better
• Appraisal required for non-cash donations over $5,000

Appreciated Asset Donations

Strategy: Donate appreciated stock or real estate directly to charity instead of selling.

• You avoid capital gains tax on the appreciation
• You deduct the full fair market value
• This is often more tax-efficient than selling and donating cash

Donor-Advised Funds (DAF)

• Contribute to a DAF and get the deduction immediately
• Recommend grants to charities over time
• Invest the balance tax-free while in the DAF

Qualified Charitable Distribution (QCD)

• If you're 70½ or older with an IRA, donate up to $108,000/year directly to charity
• Excluded from income (better than a deduction)
• Counts toward your RMD

Bunching Strategy

Combine multiple years of donations into one year to exceed the standard deduction and itemize.

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Want to maximize the tax benefit of your giving? Our team can structure your charitable strategy.