Tax season is a great time to review the essentials of charitable giving. At the Community Foundation of Greater Flint, we are committed to making the tax aspects of your philanthropy as seamless and effective as possible. Whether you already have a donor-advised fund or are considering starting one in 2025, understanding key tax rules can help you maximize your impact.
Why does itemizing deductions matter for charitable giving?
You can only deduct charitable contributions if you itemize your deductions. If you prepare your own taxes, deductions are reported on Schedule A of IRS Form 1040. Itemizing is only beneficial if your total deductions exceed the standard deduction. For tax year 2024 (the return filed in 2025), the standard deduction is $14,600 for single filers and $29,200 for joint filers. Looking ahead to 2025 and beyond, the Community Foundation can help you explore how a donor-advised fund can support your long-term giving while optimizing your tax benefits.
Do I need receipts for every gift made through my donor-advised fund?
No. One of the advantages of giving through a donor advised fund at the Community Foundation is that you only need one tax receipt—for your contribution to the fund. Whether you donate cash or appreciated stock, the Community Foundation provides the necessary documentation. From there, you can recommend grants to your favorite nonprofits without tracking multiple receipts.
What documentation is required for charitable deductions?
For donations over $250, a written acknowledgment from the receiving charity is required. The Community Foundation provides this for all contributions to donor-advised and other types of funds. If you donate non-cash assets valued at $500 or more, IRS Form 8283 is required. For donations exceeding $5,000—such as privately held stock or real estate—an independent appraisal is necessary.
How much of my income can I deduct for charitable donations?
For gifts to public charities, including funds at the Community Foundation:
- Cash donations are deductible up to 60% of adjusted gross income (AGI).
- Non-cash assets (such as appreciated stock or real estate) are deductible up to 30% of AGI.
Donating long-term appreciated assets to the Community Foundation of Greater Flint can also provide additional tax savings. By giving directly, you avoid capital gains taxes, allowing more of your gift to support the causes you care about.
What are the rules for IRA distributions to charity?
If you are 70½ or older, you can make Qualified Charitable Distributions (QCDs)—up to $108,000 in 2025—directly from your IRA to certain types of funds at the Community Foundation. QCDs can count toward your required minimum distributions and may provide tax benefits. However, they cannot be directed to a donor-advised fund.
We’re here to help
The Community Foundation of Greater Flint is here to support your charitable giving, during tax season and throughout the year. Whether you want to create a lasting impact or align your philanthropy with your financial goals, we can help you craft a plan that works for you and the community.
