Gift Types and Their Tax Benefits

Cash Gifts (Excluding QCDs)

Cash, personal checks, and bank transfers are the most straightforward charitable gift. The valuation is the fair market value (cash amount). The deduction limit is 60% of AGI for public charities and 30% for certain private non-operating foundations. Unused deductions can be carried forward for five years.

Short-Term Capital Gain, Ordinary Income, and Loss Property

Includes stocks, mutual funds, ETFs, CDs, and annuities held short-term. Deduction is limited to the lesser of FMV or adjusted cost basis, with a 50% AGI limit. Donating this type of asset typically provides less benefit than donating long-term appreciated property.

Long-Term Capital Gain Property (Intangible and Real Property)

Stocks, mutual funds, ETFs, land, and real estate held long-term offer a double tax benefit: you can deduct the full fair market value while avoiding capital gains recognition. Deduction is limited to 30% of AGI (if using FMV) or 50% (if using basis). Carryforward available for five years.

Long-Term Capital Gain Personal Movable Property (Personalty)

Artwork, vehicles, furniture, clothing, and collectibles. The deductibility depends on whether the gift is for a “related use” to the charity’s mission. Related-use: deduct FMV (30% AGI limit) or basis (50% AGI limit). Unrelated-use: must use basis (50% AGI limit for public charities, 20% for private foundations).

Qualified Charitable Distributions (QCDs)

Direct transfers from a traditional IRA to a qualified charity for taxpayers age 70½ or older. Up to $111,000 per year. QCDs are excluded from income entirely—no effect on AGI/MAGI—and can satisfy your RMD. No itemized deduction is taken. QCDs can only be made to CRTs and CGAs (subject to limitations).

Documentation Requirements

• Gifts under $250 — Receipt from the charity with details of the donated property
• Gifts of $250 or more — Contemporaneous written acknowledgment (CWA) from the charity
• Non-cash gifts over $500 — IRS Form 8283 required
• Non-cash gifts over $5,000 — Qualified appraisal required (except for publicly traded securities)
• Cash QCDs — Basic documentation (receipt, bank record) only

Key Planning Notes

• A 0.5% AGI floor applies to all itemized charitable donations (not including QCDs or non-itemized donations)
• If taking the standard deduction, you can still deduct up to $1,000 ($2,000 MFJ) in cash donations to qualifying public charities via the non-itemized below-the-line charitable deduction
• Unused deductions can be carried forward for up to five years for most gift types (not QCDs)
• QCDs require the donor to be at least age 70½ and the distribution to go directly from the IRA to the charity