Tax-Efficient Donations

Sam Verhulst, CPA

Over the last 40 years, Americans have given well over $300 billion to charity. There are many benefits to charitable giving, but the tax benefit related to these gifts has changed over the past few years. With the increased standard tax deduction, many Americans are now receiving no tax benefit for their charitable gifts. Please consult with your tax preparer or financial advisor for specific charitable giving strategies, but here are a few ideas to consider for how you can give in a more economical and tax-efficient manner:

• The CARES ACT has made the first $300 donated in 2020 deductible including those taxpayers who take the standard deduction
  • Donate appreciated securities rather than cash to eliminate capital gains taxes
  • If over age 70.5, consider making charitable gifts directly from your IRA
  • Donate a larger amount to a Donor Advised Fund and distribute to charity over multiple years
  • For larger estates, a Charitable Trust may be appropriate

Sam Verhulst, CPA

414-257-3700  ♦  sverhulst@chartercapital.net

13805 N. Burleigh Road, Suite 100

Brookfield, WI 53005