Charitable Giving Tax Strategies (Beyond Writing a Check)

Give appreciated stock, not cash

If you've held a stock for over a year and it's gained value, donate the shares directly:

• You deduct the fair market value
• You avoid all capital gains tax on the appreciation
• The charity sells at no tax (they're exempt)

Net win: same charitable gift, larger total tax savings vs cash.

Bunching with a donor-advised fund (DAF)

Standard deduction of $29,200 MFJ means most years' charitable giving doesn't actually save tax. Fix: contribute 3–5 years of giving to a DAF in one year (itemize that year), then grant out to charities over time (taking the standard deduction in off years).

QCDs after age 70½

A Qualified Charitable Distribution sends up to $105,000/year (2024) directly from a traditional IRA to a charity:

• Counts toward your RMD
• Doesn't appear in AGI — avoids IRMAA, SS taxation, NIIT triggers
• Effectively gives you a deduction even if you take the standard deduction

AGI limits to remember

• Cash to public charity: deductible up to 60% of AGI
• Appreciated long-term assets to public charity: 30% of AGI
• To private foundation: 30% (cash) / 20% (appreciated)
• Excess carries forward 5 years

Documentation requirements

• Under $250: bank record or receipt
• $250+: written acknowledgment from charity stating amount and whether goods/services were received
• $500+ noncash: Form 8283
• $5,000+ noncash (non-publicly-traded): qualified appraisal required

Charitable lead and remainder trusts

Higher-net-worth strategies for combining giving with estate planning. CRT: pay yourself an income stream, charity gets the remainder. CLT: charity gets the income, heirs get the remainder. Both require legal setup — not DIY.