Need help timing your charitable contributions?
For many taxpayers, charitable giving doesn’t actually reduce their tax bill, but with the right approach, it can. Two strategies can make a meaningful difference for those who give regularly to faith-based, educational, or other 501(c)(3) organizations: Deduction Lumping and Asset Gifting. Deduction Lumping involves strategically timing charitable gifts and other deductible expenses to exceed the standard deduction in years you otherwise wouldn’t qualify. Asset Gifting involves donating appreciated assets directly rather than liquidating them first, avoiding capital gains tax while receiving a deduction for the full fair market value.
Need help timing your charitable contributions?
For many taxpayers, charitable giving doesn’t actually reduce their tax bill, but with the right approach, it can. Two strategies can make a meaningful difference for those who give regularly to faith-based, educational, or other 501(c)(3) organizations: Deduction Lumping and Asset Gifting. Deduction Lumping involves strategically timing charitable gifts and other deductible expenses to exceed the standard deduction in years you otherwise wouldn’t qualify. Asset Gifting involves donating appreciated assets directly rather than liquidating them first, avoiding capital gains tax while receiving a deduction for the full fair market value.
