2024 Charitable Contribution Limit

Gain a deeper understanding of giving-related tax strategies that can maximize your charitable contributions and minimize your taxes. Living a lifestyle of generosity involves giving abundantly and wisely—this includes finding the most efficient giving strategies for your family. Build your strategy based on the 2024 standard deduction and charitable contribution limits. After all, good stewardship extends even to the ways we fill out our tax forms.

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2024 Charitable Contribution Limits: How much giving is deductible?

Tax benefits for charitable contributions: 2024 tax law offers charitable deductions to donors who itemize taxes and contribute cash or appreciated non-cash assets (make sure to hold them for more than a year before donating). So, what is the charitable contribution limit in 2024?

The charitable contribution deduction for an individual donor’s gift of cash to a public charity or donor advised fund remains limited to 60% of one’s adjusted gross income (AGI). Individual donors may generally claim a tax deduction for the value of appreciated non-cash asset gifts to qualified public charities and donor advised funds up to 30% of their AGI. Donation amounts in excess of these limits may be carried over to the five following tax years.

Should You Itemize? 2024 Standard Deduction

The standard deduction for married couples filing jointly for tax year 2024 rises to $29,200, up from $27,700 the prior year.

For single taxpayers and married individuals filing separately, the standard deduction rises to $14,600 for 2024, up from $13,850 the prior year.

And for heads of household, the standard deduction will be $21,900 for tax year 2024, up from $20,800 for tax year 2023.

Charitable Giving-Related Tax Strategies

Avoiding Gain on Stocks through Charitable Giving

A donor who donates appreciated stocks to a donor advised fund avoids recognizing capital gain on the sale of the stocks. Donating appreciated stocks, rather than selling the stocks then donating cash, can minimize a donor’s tax burden and maximize generosity. Learn more here.

Itemizing Deductions for Non-cash Asset Donations

For those who itemize deductions, giving capital assets such as stock, cryptocurrency, real estate, or a business interest to a donor advised fund can further minimize the tax burden while maximizing generosity. Beyond avoiding the capital gain tax on the sale of the appreciated asset, a donor who itemizes can claim a charitable contribution deduction for the fair market value of the asset. This can mean even more going to charity and less to taxes.

Leverage Deduction Rules through a Bunching Strategy

Bunch contributions. Bunching charitable donations means donating two years’ worth of your expected contributions to a donor advised fund in a single year.
For example, if you increase your donations in 2024, you may choose to itemize deductions on 2024 taxes and take the standard deduction on 2025 taxes. In addition to achieving a large charitable impact now, this strategy could produce a greater total deduction across the two years, depending on your contribution amounts and filing status. With a donor advised fund, you can recommend a schedule of grants to go out across the two years.

Consider Retirement Assets

Make a Qualified Charitable Distribution (QCD) of IRA assets. Individuals age 70½ and older can direct up to $105,000 per year, tax-free, from their Individual Retirement Accounts (IRAs) to operating charities through qualified charitable distributions (QCDs). A QCD satisfies your RMD requirement for the year, and by reducing your IRA balance, a QCD may also reduce your required minimum distribution (RMD) in future years, lower your taxable estate, and limit your beneficiaries’ tax liability. A donor advised fund is not an eligible recipient of a QCD—a distribution from your IRA to a DAF will not be tax-free. The Signatry offers other giving methods that may receive a QCD, including designated funds. Grants from a designated fund can only be sent to a single charity. Learn more here.