The Charitable Giving Strategy Worksheet

Timely strategies to help you give and save more

Questions to Consider:

Are you planning to give to charity on an annual basis?
Do you want to increase your itemized deductions to surpass the standard deduction?
Are you expecting a high-income year, which could move you into a higher marginal income tax bracket?
Do you own long-term appreciated securities in a taxable account?

Approaches to Consider:

Bunch your giving: Contributing multiple years of giving upfront may help you enhance your tax savings. You may want to consider this strategy if you are facing a high-income year, nearing retirement or looking to exceed the standard deduction.
Think beyond cash: You may be able to increase your charitable impact by giving long-term appreciated securities (e.g., stocks, bonds, mutual funds and non-publicly traded assets like private business interests) to charity. Compared to giving cash, or selling the appreciated securities and contributing the proceeds, giving appreciated securities may enable you to reduce your tax liability.
Use a donor-advised fund: A donor-advised fund like the Fidelity Charitable® Giving Account® may enable you to support your favorite charities while helping you take advantage of the tax-planning strategies above. Contributing to a public charity sponsoring a donor-advised fund program provides an immediate tax deduction and provides you, the donor, the flexibility to recommend grants to charities at your own pace. While you decide which charities you would like to recommend grants to support, your contribution may be able to grow tax-free utilizing an array of investment options.

Here's a Hypothetical Example:¹

Anne, a single / individual tax filer, typically gives $5,000 to charity each year. She expects to claim an additional $9,600 in other itemized deductions.² Due to a sizable bonus this year, Anne thinks she will be subject to a higher income tax rate.

Strategy #1 shows Anne's estimated tax savings if she continues to give $5,000 annually in cash. Even with other itemized deductions, Anne is unable to exceed the standard deduction of $14,600 and will not receive any additional tax savings.
Strategy #2 shows Anne's potential tax savings if she gives five years’ of charitable contributions in this high-income year. By giving the full amount in long-term appreciated securities from her taxable account, Anne eliminates the capital gains tax and enjoys significant income tax savings. If she uses a donor-advised fund, these assets may grow over time—tax-free—and increase her charitable impact.

¹ For illustrative purposes only. Based on 2024 federal income tax rates and deductibility limits, which are subject to change.
² Popular itemized deductions include charitable contributions, mortgage interest deduction, medical / dental expenses, and state / local taxes.
³ Assumes adjusted gross income (AGI) of $650,000 in year 1 and $200,000 for years 2-5.
⁴ Assumes gift of long-term appreciated stock, capital gains tax rate equal to 20%, and cost basis equal to $12,500.

If you would like to review your charitable giving in context with your broader financial plan, please speak with your financial advisor.

The Charitable Giving Strategy Worksheet

Evaluate how much to give

Enter client information in the fields below and then press Calculate

How much do you typically give to charity each year?

How many years will you continue to give?

If this is a high-income year, please enter your adjusted gross income (AGI).
If this is not a high-income year, leave blank and $0 will prefill.

What is your AGI in a normal year?

What is your filing status?

Enter the total for all other itemized tax deductions you expect to take.

¹ Estimated income tax savings is based on the total itemized deduction amount that exceeds the standard deduction over the selected time horizon. The tax savings reflect an estimate of the federal income tax deduction. It does not account for any state and local taxes, alternative minimum tax, any tax on net investment income, or any other taxes.

The Charitable Giving Strategy Worksheet

Evaluate which assets to give (securities vs. cash)

Enter client information in the fields below and then press Calculate


Fair market value of securities	-	-
Estimated long-term capital gains tax paid	-	-
Charitable gift/your charitable deduction	-	-
Estimated income tax savings ⁴	-	-

¹ Amount of the proposed charitable gift is the fair market value of the appreciated securities held for more than one year that you are considering to donate.

² Please note that the long-term capital gains tax rates depicted do not take into consideration that long-term capital gain income may also be subject to an additional 3.8% Medicare tax for taxpayers with income at or above a certain threshold. Please consult with your tax advisor when making decisions pertaining to your specific situation.

³ Cost basis is the amount of money you have invested in the shares of a particular fund or individualized security plus or minus any required adjustments to basis while you held the securities. It represents the basic dollar amount, that when compared to the price at which you sell your shares, tells you how much of a capital gain or loss you have realized plus or minus any required adjustments to basis while you held the securities.

⁴ Estimated income tax savings reflects the federal income tax deduction less any long-term capital gains tax paid. It does not account for any state and local taxes, alternative minimum tax, or limitations to itemized deductions that may be applicable to tax payers in higher federal income tax brackets.

Questions to Consider:

Approaches to Consider:

Here's a Hypothetical Example:1

Enter client information in the fields below and then press Calculate

Enter client information in the fields below and then press Calculate

Here's a Hypothetical Example:¹