People give for myriad reasons: God calls us to be generous; we feel passionate about supporting a cause he’s put on our heart; we want to support our churches. But the fact remains that giving wisely is godly, too, and tax-wise strategies can help.
Charitable tax deductions may reduce the amount of taxes you pay and enable you to give more to the causes you care about. To help you make the most of your giving, we’ve answered a few common tax questions below.
Please note: The One Big Beautiful Bill Act (OBBBA), signed into law in July of 2025, created new rules that apply to gifts made beginning in 2026. However, gifts made in 2025 continue to follow the rules outlined below.
- How much of the appreciated assets I gifted in 2025 can I deduct?
Generally, if you’re able to itemize your deductions and you gave to a public charity (including a donor-advised fund, like your Giving Fund at NCF), you can deduct up to 30 percent of your adjusted gross income (AGI) for appreciated assets. If you gifted more than that, you may be able to carry the excess forward up to five consecutive years. - What do I need to do to claim a charitable deduction for a non-cash gift?
If you made a non-cash gift, you’re required to submit IRS Form 8283 with your tax return. Additionally, if you made a non-cash gift of more than $5,000 (other than publicly traded securities), you must obtain a qualified appraisal and obtain signatures from both the charity and the appraiser on your Form 8283. If the value of the gifted asset is more than $500,000, then you must also attach the qualified appraisal to Form 8283. - Can I deduct the entire value of my appreciated asset gift this year?
How much you can deduct depends on two factors: the type of gifted asset and the type of charity to which it’s being gifted. Tangible personal property (jewelry, art, or antiques), intellectual property, and life insurance policies are generally deductible at a lower level, the lesser of the fair market value or cost basis. Gifts of closely held business, real estate, and publicly traded securities can usually be deducted at fair market value when donated to a public charity, including a donor-advised fund sponsor or supporting organization. - If I gifted an appreciated asset, can’t I just deduct how much it sold for?
No. Generally, a deduction is determined based on fair market value at the time of the gift (or, in certain situations, the cost basis), regardless of what a gifted asset sells for after the gift. Additionally, if the value exceeds $5,000, the Internal Revenue Code requires the asset to be valued by a “qualified appraiser,” and such a valuation may be discounted by the appraiser for lack of control or lack of marketability. - What other factors might impact my deduction?
We recommend you consult with your tax expert, because when you deduct charitable gifts of certain appreciated assets, your deduction may be reduced by valuation discounts, ordinary income assets or debt. - If I gifted publicly traded securities, what is the value of the gift?
For deduction purposes, the value of publicly traded securities is generally the mean value between the highest and lowest sale prices of the security on the day the charity receives the gift. - What changes are coming in 2026 under the OBBBA?
Beginning in 2026, two new limits apply:New floor: A “floor” now applies to all charitable deductions. Only the portion of your total giving that exceeds 0.5% of your adjusted gross income (AGI) is deductible. For example, if your AGI is $200,000, the first $1,000 of your charitable giving is not deductible. Similarly, corporations will only be able to deduct charitable contributions that exceed 1% of their taxable income.New cap: If you’re in the 37% tax bracket, the tax benefit of your charitable deductions is capped at 35%. This means maximum tax savings of 35 cents per dollar donated rather than 37 cents.
Still have questions? If you want to be sure you’re giving in the best and most strategic way, contact your local NCF team to help you make a plan to get more money to the charities, churches, and causes you love.
