Charitable Giving Calculator
Charitable donations can reduce your federal income tax bill significantly when you itemize deductions. The actual after-tax cost of a donation depends on your marginal tax rate and, for appreciated assets, the capital gains tax you avoid by donating rather than selling. A $10,000 donation at a 32% marginal rate effectively costs only $6,800 after the tax savings. Donating long-term appreciated stock is even more powerful, because you also bypass capital gains tax on the embedded gain. This calculator compares two scenarios: (1) a straight cash donation and (2) donating appreciated securities. For each scenario it estimates the tax deduction value, any capital gains tax avoided, and the true after-tax cost of your generosity. Enter $0 in the cost basis field if you are donating cash rather than securities.
Charitable giving formula
Tax Deduction Value = Donation x Marginal Income Tax Rate
Capital Gains Tax Avoided = (Donation - Basis) x Capital Gains Rate
After-Tax Cost (cash) = Donation - Tax Deduction Value
After-Tax Cost (appreciated asset) = Donation - Tax Deduction Value - Capital Gains Tax Avoided
Assumes you itemize deductions. State income tax deductions are not included.
2025 charitable deduction AGI limits (IRS)
- Cash to public charities: up to 60% of AGI (excess carried forward 5 years).
- Appreciated long-term capital gain property to public charities: up to 30% of AGI.
- Donations to certain private foundations: up to 30% of AGI (cash) or 20% (appreciated property).
- Qualified conservation contributions: up to 50% of AGI (special rules for farmers and ranchers).
Charitable giving: frequently asked questions
How much can I deduct for charitable donations?
For cash donations to public charities, the deduction limit is 60% of your Adjusted Gross Income (AGI) in 2025. For appreciated property donations (stocks, real estate), the limit is 30% of AGI. Excess amounts can be carried forward for up to five years. Itemizing is required to claim the deduction.
What is the benefit of donating appreciated stock instead of cash?
Donating appreciated securities held more than one year avoids capital gains tax on the appreciation, while still giving you a full fair-market-value deduction. For example, if you own stock worth $10,000 with a $2,000 basis, donating it saves you the 15% (or 20%) capital gains tax on $8,000 in gains versus selling and donating the cash proceeds.
Should I itemize deductions or take the standard deduction?
You benefit from itemizing only when your total itemized deductions (including charitable gifts, mortgage interest, state/local taxes up to $10,000, etc.) exceed your standard deduction. For 2025: $15,000 (single), $30,000 (married filing jointly). Bunching several years of donations into one year or using a donor-advised fund can help you exceed the threshold.
What is a donor-advised fund (DAF)?
A donor-advised fund is a charitable account held by a sponsoring organisation. You contribute assets and receive an immediate deduction, then recommend grants to charities over time. DAFs are useful for bunching: make a large contribution in a high-income year to secure the deduction, then distribute to charities over multiple years.
Are there limits on deductions for non-cash donations?
Non-cash donations of property require IRS Form 8283. Donations of $250 or more need written acknowledgment from the charity. Donations of property over $500 require additional disclosure of cost basis. Donations of property over $5,000 generally require a qualified appraisal. Clothing and household items must be in good used condition or better.
Official sources
- IRS Publication 526: Charitable Contributions.
- IRS Topic No. 506: Charitable Contributions.
Reviewed by the CalculatorHub team, edited by James Graham, 14 June 2026. See our methodology.