Charitable Contributions – Taxation

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Using charitable contributions is generally only valuable from a taxation standpoint if you itemize deductions on your tax return.



If you take the standard deduction, you generally cannot deduct charitable contributions.

Even still, this is not the main reason to be charitable. You are supporting causes that you feel are important. Love is not dead quite yet.

The Details

If you itemize on your tax return you can deduct donations made to qualified organizations, such as:

  • 501(c)(3) nonprofits
  • Religious organizations
  • Educational institutions
  • Government units for public purposes

Cash Donations

Generally, cash deductions are deductible up to 60% of your Adjusted Gross Income. So, not perfect, but if you itemize deductions and intend to be charitable this could be a valuable strategy to reduce tax liability.

Most importantly though, you have helped a cause of importance to you. It might improve your sleep, or another’s.

See my article about Charitable Remainder Trusts for a different way to approach giving.

-Zac