Many seek ways to reduce our taxable income as we approach tax season. One effective strategy is to make charitable donations. Not only does this help those in need, but it can also provide significant tax benefits. Here are some tips on how to maximize your tax savings through charitable giving in 2024:
1. Understand the Deduction Limits
For 2024, the IRS allows you to deduct up to 60% of your adjusted gross income (AGI) for cash donations to public charities. If your contributions exceed this limit, you can carry forward the excess amount for up to five years. Understanding and utilizing these laws can empower you to make a significant impact while reducing your tax bill.
2. Donate Appreciated Assets
Instead of donating cash, consider giving appreciated assets like stocks or real estate. This way, you can avoid paying capital gains tax on the appreciation, and you can deduct the total fair market value of the asset.
3. Qualified Charitable Distributions (QCDs)
If you are 70 and ½ years old or older, you can make QCDs from your traditional IRA. These distributions are not taxable and can satisfy your required minimum distribution (RMD). While you can’t claim a tax deduction for QCDs, they can be a great way to support your favorite charities tax-free.
4. Itemize Your Deductions
To benefit from charitable deductions, you must itemize your deductions on your tax return. That means keeping detailed records of all your donations and ensuring they meet IRS requirements.
5. Use Donor-Advised Funds (DAFs)
DAFs allow you to make a charitable contribution and receive an immediate tax deduction while the funds are invested and grow tax-free until you decide which charities to support.
6. Consult a Tax Advisor
Tax laws can be complex, and it’s always a good idea to consult with a tax advisor to ensure you maximize your deductions and comply with IRS regulations. This can provide you with the peace of mind that you are doing everything correctly and ethically.
How to Donate and Cut Your Tax Bill with Embrace Relief:
Visit Embrace Relief’s website home page: embracerelief.org
- Embrace Relief is a 501(c)(3) non-profit organization that delivers humanitarian aid and disaster relief to vulnerable communities worldwide. By donating to Embrace Relief, you can support their efforts to provide education, healthcare, and other critical services to those in need.
Click the “Donate Now” button:
- Make a one-time or recurring donation to support Embrace Relief’s humanitarian relief work. You can choose the amount you wish to donate and the frequency of your donations. Once you’ve selected, you’ll be guided through a secure payment process.
Explore specific programs:
- Learn all about Embrace Relief’s humanitarian initiatives, such as Clean Water, Hunger Relief, Orphan Care, Women’s Empowerment, and more. No matter which program you choose to support, you can be sure that your donation will provide comfort and aid to vulnerable people around the world who need it most. Options include:
- Afghan girls’ education: Remote online learning to help girls in Afghanistan achieve their dreams.
- Clean Water Projects: Building wells and providing access to safe drinking water in areas with limited water resources.
- Health: Offering medical aid, cataract surgeries, and health education in underserved regions.
- Orphan Care: Embrace Relief also runs various orphan care programs to provide a better future for orphans worldwide.
- Disaster Relief: Providing immediate aid and long-term recovery support for natural disasters.
- Refugee Relief: Helping displaced individuals and families with essential needs and integration into new communities.
- Education: Supporting schools, scholarships, and educational resources for children and adults.
Your generosity can make a significant impact and help create a brighter future for Afghan girls and other vulnerable populations. Every little bit helps, and your support can go a long way in making a difference. We encourage you to take a moment to consider how you can contribute to these important causes.
