What percentage of your adjusted gross income can you deduct in charitable contributions?


As we navigate the 2023 tax year, it's important to understand the potential benefits of charitable contributions. You can deduct up to 60% of your adjusted gross income (AGI) through charitable deductions, making it one of the most generous income tax deduction strategies. This includes not only cash donations but also donations of property and appreciated assets such as stocks, ETFs, mutual funds, and even cryptocurrency. Donating appreciated assets can be particularly beneficial as it allows you to avoid paying capital gains tax on the appreciation while still receiving a tax deduction for the full value of the asset. However, the limit for deducting charitable donations of appreciated assets is 30% of your AGI. This is where Daffy, a donor-advised fund (DAF), comes into play. Many non-profits lack the capability to receive donations in the form of stocks, ETFs, index funds, and cryptocurrencies. Daffy bridges this gap, making it easier for you to donate in a way that maximizes your tax benefits and supports the causes you care about. Daffy also offers a Giving Goal Calculator to help you determine an appropriate donation amount based on your income or a fixed amount. This tool provides data on the average household donations in your city, offering guidance as you set your annual giving goal. Remember, charitable donations can be deducted up to 30-60% of your adjusted gross income, making them one of the most generous income tax deductions available. By utilizing a DAF like Daffy, you can maximize your tax savings while supporting the causes that matter most to you. In conclusion, Daffy is a great option for a DAF, offering a simple and effective way to manage your charitable contributions while maximizing your tax benefits. Whether you're donating cash, property, or appreciated assets, Daffy can help you make the most of your giving.

Please note that the information contained on this page is for educational purposes only and should not be considered tax advice. Any calculations are intended to be illustrative and do not reflect all of the potential complexities of individual tax returns. To assess your specific tax situation, please consult with a tax professional.

Get your Daffy account
Simplify your giving with Daffy, the Donor-Advised Fund for You™. Easily donate to almost every US public charity, track tax-deductible contributions, and access donation receipts all in one place.
Try Daffy for free
Daffy waives all membership fees for members with less than $100 in their fund, so get started today for free!

Don’t forget to download the app

Scan the QR code to get the iPhone app

Download on the App Store.
QR code to download the app from the App Store.