Your 2025 Charitable Giving FAQs: What I Tell My Clients

No. To deduct charitable contributions, you must itemize your deductions on your tax return. In 2025, the standard deduction is:

• $14,600 for Single filers
• $29,200 for Married Filing Jointly

If your total deductions — including mortgage interest, SALT (capped at $10,000), and charitable giving — don’t exceed that threshold, you won’t get a tax benefit from donations.

Here’s what I tell clients: If you’re close to the threshold, consider “bunching” multiple years of giving into one tax year to make itemizing worthwhile.

In 2025, the deduction limits are based on your Adjusted Gross Income (AGI):

• Cash donations to public charities: Up to 60% of AGI
• Non-cash assets (like appreciated stock): Up to 30% of AGI

Excess contributions can be carried forward for up to five years.

CPA Insight: One mistake I see is clients donating appreciated stock and expecting a 60% AGI deduction. That cap only applies to cash. Know the difference to avoid surprises.

Often, appreciated assets like stocks or mutual funds are the smarter choice. Why?

• You avoid capital gains tax on the appreciation
• You can deduct the full fair market value (if held over 1 year)

Example: A client donated $50,000 in stock that cost them $10,000. They saved over $9,000 in capital gains tax and still got a $50,000 deduction on their return.

A DAF allows you to:

• Make a large donation in one year (and get the deduction now)
• Distribute the funds to various charities over time
• Use appreciated assets, cash, or a mix

DAFs are ideal if:

• You’re having a high-income year
• You want more time to decide where to give
• You want to involve family in ongoing giving decisions

Here’s what I tell clients: DAFs turn tax planning into legacy planning. You take care of today’s taxes and tomorrow’s causes.

Yes — if you're age 70½ or older, you can use a Qualified Charitable Distribution (QCD) to give directly from your IRA to a qualified charity.

In 2025:

• You can donate up to $105,000 via QCDs
• This counts toward your Required Minimum Distribution (RMD)
• It does not increase your AGI

Client example: A retired couple used QCDs to give $30,000 to their church and food bank. Their RMDs were satisfied, and they avoided a spike in Medicare premiums due to AGI limits.

Yes, but with caution. Donating non-cash complex assets like real estate, LLC interests, or private stock requires:

• A qualified appraisal
• Advanced planning
• Coordination with the charity

These gifts often have significant tax advantages, especially for clients with highly appreciated assets they no longer want to hold.

CPA Insight: I’ve seen multi-six-figure tax savings from these gifts — but only when done correctly. Never go it alone.

To claim a deduction:

• Keep written acknowledgment from the charity for gifts over $250
• Use Form 8283 for non-cash donations over $500
• Get a qualified appraisal for donations of property over $5,000

Your CPA should help you file the correct forms, but it’s on you to keep documentation in case of audit.

Yes, but it’s a little more complex. Many donor-advised funds offer anonymity. Direct gifts can remain private if you ask the organization to keep your name confidential.

However, for IRS purposes, your name must appear on the tax records, especially if you’re claiming a deduction.

Here’s what I tell clients: You can stay out of the public spotlight and still get full credit with the IRS — you just need to structure it right.

Absolutely. Strategic giving before the sale — of part or all of the appreciated asset — can reduce your capital gains exposure.

Example:

• A business owner plans to sell her company for $4 million
• She donates 10% of ownership to a DAF before the sale
• She deducts $400,000 and avoids capital gains on that portion

This works best when planned early — ideally a year or more in advance.

Not directly — unless they have a U.S. charitable affiliate with IRS 501(c)(3) status. Giving directly to a foreign nonprofit typically won’t qualify for a U.S. tax deduction.

Workarounds include:

• Donating to U.S. charities that support international work
• Using a DAF with international grantmaking capability

If you fund energy improvements for nonprofit facilities you own or manage — think solar installations on a donated building — you may qualify for:

• Residential Clean Energy Credits
• Commercial energy credits if structured correctly

However, donations to nonprofits are generally separate from energy incentives. Credits usually go to the property owner, not the charity.

Yes — and it can reduce or eliminate estate tax. You can:

• Name a charity as a beneficiary of your IRA or 401(k)
• Leave a bequest in your will or trust
• Set up a charitable remainder trust (CRT)

These options may reduce your taxable estate, especially if the $13.61M exemption decreases after 2025 as scheduled.

It’s a powerful legacy move. Many clients use family foundations or DAFs to:

• Teach kids about giving
• Create a shared mission
• Make charitable decisions together annually

Client example: A retired teacher funded a DAF and gave her kids the power to recommend grants every year. It became a meaningful family tradition.

Before giving:

• Search the charity on the IRS Tax-Exempt Organization Search Tool
• Check GuideStar.org or Charity Navigator
• Look for a current EIN or 501(c)(3) determination letter

Never donate via email, text, or over the phone without verifying legitimacy — especially during crises.

Use a giving tracker or spreadsheet with:

• Date, amount, and recipient
• Type of gift (cash, stock, IRA, DAF)
• Documentation on file (letter, receipt, Form 8283)

Many DAFs and financial advisors offer tools to help organize this automatically.

Here’s what I tell clients: The more you track, the more strategic your giving becomes — both for tax purposes and for impact.