Learn how to reduce your income and estate tax, fast.
Get our tips on big-picture strategy and actionable tactics for startup equity, small businesses, crypto, real estate, and more.
JOIN 1,000+ FOUNDERS, EMPLOYEES, AND INVESTORS WHO TRUST VALUR



Get our tips on big-picture strategy and actionable tactics for startup equity, small businesses, crypto, real estate, and more.
JOIN 1,000+ FOUNDERS, EMPLOYEES, AND INVESTORS WHO TRUST VALUR
In the United States, charitable giving is big business. Americans gave $327 billion to charity in 2021 alone, and that number is only expected to grow in the years to come. So what are the benefits of charitable giving? For many people, it’s the idea of helping others, and for some it’s the tax benefits. We’ll assume that most of our readers understand the public-benefit side, so this post will focus on the tax benefits of charitable giving. We’ll also offer information on how to claim a charitable tax deduction.
A charitable tax deduction is a tax break that you receive for donating money or goods to a charitable organization. Donating for a cause and investing either of these into charity can bring you lots of benefits. However, we’d drafted the four benefits of giving to charitable organizations, we consider the most important:
Charitable giving carries many benefits, but there are limits on the financial benefits.
You can deduct your donations to charity on your federal income tax return, your state income tax return, or both. If you donate money or goods to a qualifying charity or entity, you can deduct the fair market value of those donations from your taxable income.
The IRS has set specific limits on how much you can deduct each year. For example, the charitable deduction limit for cash donations in 2023 is 60% of your adjusted gross income (AGI). The charitable deduction limit for appreciated assets (like public company stock, cryptocurrency, real estate, and startup equity) is 30% of your AGI. Your adjusted gross income is the amount of income you have earned minus any deductions you may claim. To determine your maximum charitable deduction, you will need to know your AGI.
The financial benefits of charitable tax deductions are significant. If you donate $500,000 to charity and have a 50% tax rate, you can save $250,000 on your taxes alongside the other benefits mentioned above.
Donating money to charities is a straightforward process, and as we previously explained, there are tons of benefits of charitable donations. But, what the right kind of organization you should invest your money on?
There are many different charitable organizations that you can donate to in order to receive a charitable tax deduction. Some of the most common include:
Donating money to charities carries significant benefits for everyone involved. There is the obvious good it does in the world, as well as social and financial benefits for the donor.
We have built a platform to give everyone access to the tax planning tools of the ultra-rich like Mark Zuckerberg (Facebook founder), Phil Knight (Nike founder) and others. Valur makes it simple and seamless for our customers to utilize the tax advantaged structures that are otherwise expensive and inaccessible to build their wealth more efficiently. From picking the best strategy to taking care of all the setup and ongoing overhead, we make take care of it and make it easy.