Tax Considerations for Cash Charitable Giving

When dealing with the subject of cash charitable giving, there are a number tax implications that you will need to consider. Here are a few tax considerations to understand when dealing with cash charitable giving.

Tax Deduction

When you give cash to a charitable organization, you should be able to deduct the amount of the donation from your taxable income. You can actually deduct up to 50 percent of your annual income if you give that much to charity. You also need to make sure that you are giving money to a certified charitable organization if you want to count it as a deduction on your taxes.


Many individuals believe that this method of charitable giving is not as effective as other methods. For one thing, when you give cash, you will need to make sure that you get a receipt in order to prove that the donation was made. Otherwise, there is no way to prove that you donated and you cannot count the deduction.

In addition to this, it does not provide you with tax advantages that are as good as when you give appreciated assets. When you give appreciated assets, you will be able to eliminate capital gains taxes and get a tax deduction from your income as well.

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