Charitable Giving

Six Charitable Giving Strategies for 2024

Charitable gifting can occur throughout the year; however, many individuals and families focus on their charitable giving in the fourth quarter as it coincides with annual tax planning. Charitable donations are tax deductible for individuals who itemize their deductions when they file their tax return. The annual deduction limit for gifts to public charities is 60% of Adjusted Gross Income (AGI) for gifts of cash and is 30% of AGI for non-cash donations.

The six strategies below may help maximize your charitable impact and your annual income tax savings:

1. Make Qualified Charitable Distributions from your IRA.

Individuals who are at least 70½ years old can donate up to $105,000 from their IRA annually as a Qualified Charitable Distribution (QCD). The distribution is made from pre-tax dollars and can be used to satisfy your annual Required Minimum Distribution, if applicable.

2. Donate appreciated securities.

Consider donating appreciated securities rather than selling the position and donating the cash proceeds. This strategy may be particularly advantageous for individuals with concentrated positions with large unrealized capital gains. Donating the securities directly to charity eliminates the capital gains tax you would have to pay as a result of selling the security. This article compares donating cash and property.

3. Donate cash from the sale of depreciated securities.

Taxpayers benefit from recognizing losses rather than gifting depreciated securities. Consider harvesting tax-losses from your portfolio and donating the cash proceeds. In this way, you can recognize a tax loss that can offset any capital gains for the year or be used to offset up to $3,000 of your ordinary income, and you will receive a charitable deduction for your cash donation.

4. Increase your charitable giving when you expect higher annual income.

Charitable donations are deductible and may reduce your taxable income. You may consider increasing your charitable giving in years where your income is expected to be higher due to a liquidity event, stock options, capital gains, or Roth conversions.

5. Bunch your contributions.

Many taxpayers now take the standard deduction rather than itemizing their deductions. Charitable contributions are only tax deductible to those who itemize. The standard deduction is $14,600 for single filers and $29,200 for joint filers in 2024. To help itemized deductions exceed the standard deduction amount, you may consider bunching your charitable contributions. Rather than donating $15,000 to charity each year, for example, you may consider making a $30,00 donation this year and skipping your donation next year.

6. Consider a Donor-Advised Fund.

If you like the idea of bunching your contributions or making a large charitable donation in the current year but aren’t sure where you want the proceeds to go, you may consider a Donor-Advised Fund (DAF). Your contribution to the DAF will be deductible in the year of the gift but grants from the DAF to charities can be made later.

Charitable giving strategies may vary depending on your specific goals and circumstance. We recommend consulting with a tax or wealth advisor to identify the charitable strategies best suited for you. Please contact us with any questions or to schedule an appointment.

Editor’s Note: This article was originally published in November of 2020. It has been updated to reflect gifting strategies for 2024.

  • Schultz Financial Group, Inc. (“SFG”) which is a registered investment adviser, drafted this blog post for its website and for the use of its clients or potential clients. Any other distribution of this blog post is strictly prohibited. Registration as an investment adviser is not an endorsement by securities regulators and does not imply that SFG has attained a certain level of skill, training, or ability. While the content presented is believed to be factual and up to date, it is based on information obtained from a variety of sources. SFG believes this information is reliable, however, it has not necessarily been independently verified. SFG does not guarantee the complete accuracy of all data in this blog post, and it should not be regarded as a complete analysis of the subjects discussed. All expressions of opinion reflect the judgment of SFG as of the date of publication and are subject to change. This blog post does not constitute personalized advice from SFG or its affiliated investment professionals, or a solicitation to execute specific securities transactions. SFG is not a law firm and does not intend for any content to be construed as legal advice. Readers should not use any of this content as the sole basis for any investment, financial planning, tax, legal or other decisions. Rather, SFG recommends that readers consult SFG and their other professional advisers (including their lawyers and accountants) and consider independent due diligence before implementing any of the options directly or indirectly referenced in this blog post. Past performance does not guarantee future results. All investment strategies have the potential for profit or loss, and different investments and types of investments involve varying degrees of risk. There can be no assurance that the future performance of any specific investment or investment strategy, including those undertaken or recommended by SFG, will be profitable or equal any historical performance level. Any index performance data directly or indirectly referenced in this blog post is based on data from the respective copyright holders, trademark holders, or publication/distribution right owners of each index. The indexes do not reflect the deduction of transaction fees, custodial charges, or management fees, which would decrease historical performance results. Indexes are unmanaged, and investors cannot invest directly in an index. Additional information about SFG, including its Form ADV Part 2A describing its services, fees, and applicable conflicts of interest and Form CRS is available upon request and at

  • More Insights from SFG

    December, 2023
    Social Security Benefits Increasing in 2024

    Each year, the Social Security Administration announces the annual cost-of-living adjustment (COLA). The Social Security Administration has announced that Social Security and Supplemental Security Income (SSI) benefits will increase for 2024.