Charitable giving strategies in 2020

On Behalf of | Sep 13, 2020 | Estate Planning

The wealth you earn over your life deserves to go where you want it. At certain levels of income and assets, the government seeks to tax large percentages that could go to people you love or charities you wish to donate to.

As Forbes lists, recent legislation like the Tax Cuts and Jobs Act, the SECURE Act and the CARES Act have impacted charitable giving strategies.


This has to do with itemized deductions like household objects and cash. When deciding whether to apply for a standard deduction or not, there are timing windows that can help secure tax breaks while also giving to the cause you care most about.

Stock appreciation

Stock donations are easy since they move from your taxable investment account to the charity’s. Provided you own the stock for a year, you may deduct their fair market value. But donating stock that appreciates over the years provides you with more flexibility. If you sell $10,000 worth of stock, that gets dinged by income tax. If you donate $10,000 worth of stock to a charity, they can sell the shares and avoid paying taxes on the gain.

IRA contributions

The recent SECURE Act removes any age limits from making IRA contributions. Since savings in an IRA offers tax-free growth, the money donated can help avoid untoward taxes.

Other strategies

Working to spend your wealth where you want it may seem complicated, especially with how tax codes affect different types of income and assets, but there are resources to help. Charitable planning strategies like remainder trusts, family foundations and conservation easements serve as more resources to help you help others—instead of giving it to the government.