Key Takeaways
- Charitable donations can reduce your taxable income and lower your tax bill
- You must itemize deductions to claim charitable contributions
- Donating appreciated stock can avoid capital gains tax AND provide a deduction
- Cash donations are deductible up to 60% of your adjusted gross income (AGI)
- Keep records and receipts for all donations over $250
About This Calculator
Our Charitable Donation Tax Calculator helps you understand the true cost and tax benefits of your charitable giving. By entering your donation amount, tax bracket, and donation type, you can see exactly how much you'll save on taxes and what your effective cost of giving is.
How Charitable Tax Deductions Work
When you make a qualified charitable donation to a 501(c)(3) organization, you can deduct the value of your gift from your taxable income if you itemize deductions. This means if you're in the 24% tax bracket and donate $1,000, you could save $240 on your taxes, making your actual cost of giving only $760.
Pro Tip: Donate Appreciated Stock
If you have stocks that have increased in value, donating them directly to charity can be more tax-efficient than selling them first. You avoid paying capital gains tax AND you get a deduction for the full fair market value. The calculator applies a 1.3x multiplier for stock donations to reflect this additional benefit.
Types of Charitable Donations
- Cash: Direct monetary donations, including checks and credit card payments
- Appreciated Stock: Securities held for more than one year that have increased in value
- Property: Real estate, vehicles, artwork, and other non-cash assets
Important Considerations
- The standard deduction for 2024 is $14,600 (single) or $29,200 (married filing jointly)
- You'll only benefit from charitable deductions if your itemized deductions exceed the standard deduction
- Always verify that the organization is a qualified 501(c)(3) charity
- Donations to individuals, political organizations, or candidates are NOT tax-deductible