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Charitable Contribution Deductions: 3 Strategies To Make The Most Out of Your Giving

We all know that giving can be so much more rewarding than receiving. But when it comes to end of year charitable contributions, you can get the best of both worlds by being generous and getting a charitable contribution deduction too. 

Types of Charitable Contributions

There’s a million ways to give, but there’s only a handful of ways to give that are recognized by the IRS as true charitable contributions. You can give cash or non-cash gifts to qualifying organizations:1 

    • Religious organizations 
    • Community trusts or foundations 
    • War veterans’ organizations 
    • Civil defense organizations 
    • A state or United States possession 
    • Fraternal societies 
    • Nonprofit volunteer fire companies 
    • Nonprofit cemeteries 

Charitable Contribution Limits

In 2021, many people received a $300 deduction without itemizing their charitable contributions. But this year, that’s no longer the case. If you want to receive charitable contribution deductions, itemizing your giving is a must. 

This year, you can give up to 50% of your adjusted gross income to public charities (or those qualifying organizations we mentioned earlier). Although, some qualified organizations are only allowed to receive 30%.2 The IRS defines adjusted gross income as “gross income minus adjustments to income.” Adjustments include things like student loan interest, contributions to any retirement accounts, alimony, and more. 

But those percentages are just for cash gifts. If you’re looking to give other types of gifts such as stock, appreciated assets, or even property, that number goes up to 60% of your adjusted gross income.3 If your donation exceeds those percentages, the IRS will allow you to carry those gifts over for the next five consecutive tax years.

Are Charitable Donations In The Budget?

While we love charitable giving, we also recognize how important it is to make sure you’re ready for it financially. Here’s how to determine if you’re ready to give charitable donations

    • You don’t have any debt holding you back. 
    • Giving is in the budget. 
    • You have at least three to six months of savings in the bank. 

If you’re still struggling to pay off debt, stick to the budget, or even worried about what you’ll do when an emergency hits, donating a chunk of your income to charity may not be the best financial move for your family. But donating your time and talents can be just as impactful for the organizations you’re serving until you’re financially ready.

Tax Smart Giving Strategies to Consider

If you’re ready to start making some charitable contributions, here are three strategies to consider to help you get started.

1. Think beyond cash.

When it comes to making the most out of your charitable contribution deductions, you might want to think beyond cash. That’s right, you can give non-cash gifts to charity too—up to 60% of your adjusted gross income.

2. Group your donations over the next few years. 

If you recently came into a lot of money, earned an inheritance, or even sold a business, you may want to consider grouping your charitable donations. By grouping your donations, you can itemize your gift for this year and take the standard deductions for the next few years.

3. Consider exploring a donor-advised fund. 

A donor-advised fund is like a checking account for charitable giving. You can also use these funds to receive tax deductions on your giving. When you use a donor-advised fund, your contribution grows tax free, your donations are immediate, and you can even reduce capital gains. 

Please be sure to contact your advisor and qualified tax professional prior to making any investment decisions. 

For more tips on making the most of your charitable contribution deductions, contact SageSpring Wealth Partners and speak with an advisor in your area. We would love to help you make the most out of your charitable giving this year.


The foregoing information has been obtained from sources considered to be reliable, but we do not guarantee that it is accurate or complete, it is not a statement of all available data necessary for making an investment decision, and it does not constitute a recommendation. Any opinions 

are those of SageSpring Wealth Partners and not necessarily those of Raymond James.  Expressions of opinion are as of this date and are subject to change without notice. Investing  involves risk and you may incur a profit or loss regardless of strategy selected. Every investor’s  situation is unique and you should consider your investment goals, risk tolerance and time  horizon before making any investment. Prior to making an investment decision, please consult  with your financial advisor about your individual situation. 

Donors are urged to consult their attorneys, accountants or tax advisors with respect to questions relating to the deductibility of various types of contributions to a Donor-Advised Fund for federal and state tax purposes. 

To learn more about the potential risks and benefits of Donor Advised Funds, please contact us. 

Raymond James and its advisors do not offer tax or legal advice. You should discuss any tax or legal matters with the appropriate professional.

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Jeffrey T. Dobyns

CFP®, CLU, CHFC

President, SageSpring | Financial Advisor, RJFS 
615-861-6102

Jeffrey T. Dobyns

President, SageSpring | Financial Advisor, RJFS

Beyond crunching numbers and investment strategies, at SageSpring, we’re about building relationships. When you encounter Founder & President of SageSpring, Jeff Dobyns, it’s easy to understand why this is at the very heart of who we are as a firm. You won’t find stuffy formalities with Jeff; instead, you can expect to find him sharing a warm smile, communicating a compelling vision, or patiently untangling life’s complex challenges with clients. He believes in truly getting to know clients, understanding their aspirations and priorities, and navigating their financial plans with a tailored, comprehensive approach. Our team members have often been caught taking notes on Jeff’s effortless relationship skills from a distance, and we admire them for striving to learn from one of the best. 

Jeff’s financial expertise and wisdom are the perfect match to his innate people skills. Jeff holds the prestigious CERTIFIED FINANCIAL PLANNERTM certification, Chartered Life Underwriter (CLU®), and Chartered Financial Consultant (ChLU®) designations, and has held executive positions with financial planning firms for more than two decades. 

His dedication extends beyond the office to the boardroom and the local community, where Jeff is passionate about giving back. He serves as Chairman of the Board of Men of Valor, a prison ministry and mentoring program. Jeff also serves on the board of Send Musicians to Prison, which shares hope, healing and restoration with the imprisoned through musicians & artists. Jeff actively supports other initiatives in the community by sitting on the board of The Signatry of Middle Tennessee and the Halftime Institute of Nashville. 

Witnessing his four children, Gracyn, Hunter, Tanner, and Logan, excel on the field is almost just as rewarding, if not more, than celebrating the victories of seeing his clients overcome obstacles and build wealth. Spending weekends boating on the lake, hiking mountain trails, and fishing with his family are the moments Jeff cherishes most. It’s this grounded perspective that reveals the true meaning of wealth for Jeff: not just numbers on a page, but the freedom to create experiences that enrich your life and the lives of those you love. When you choose the Dobyns McMillin Wealth Team, you choose more than financial expertise. You choose a partner who champions your dreams, celebrates your victories, and walks besides you on the path to achieving your unique goals.

**Certified Financial Planner Board of Standards Inc. owns the certification marks CFP®, CERTIFIED FINANCIAL PLANNER TM, CFP® (with plaque design) and CFP® (with flame design) in the U.S., which it awards to individuals who successfully complete CFP Board’s initial and ongoing certification requirements.