The maximum amount you can deduct on your taxes for your charitable giving is dependent on your annual income. 

For a complete guide on understanding your maximum charitable tax deduction, review our guide: How to make the most of your charitable tax deduction.

The exact amount you reduce your taxable income or capital gains will depend on your unique situation, so it’s recommended you consult with an advisor to better understand your giving strategy. However, a charitable tax deduction is a helpful tool in reducing your tax liability. 

And when you use a donor-advised fund (DAF) as your giving vehicle, you also reduce your capital gains taxes when you give appreciated assets directly. Consider all the tax benefits of DAF giving as you plan your annual charitable giving.

The charitable deduction tax calculator above is a great tool for estimating your tax savings when you give to charity. However, this is only applicable if you itemize your tax deductions and take the charitable tax deduction. Gifts made to donor-advised funds do not qualify for the universal charitable deduction.  

If your charitable giving is not enough to warrant an itemized deduction, but you’re looking to further reduce your tax liability, consider bundling your charitable giving. This means combining several years’ worth of your typical giving into one year, increasing your annual giving for that year. 

Bundling is easy when you have a donor-advised fund. By giving all at once to a philanthropic account, you can increase your year’s giving and then recommend grants over time at your typical giving cadence.