Five Friendly Tax Tips For Your Charitable Giving

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By Chris Sawin, Outer Banks Community Foundation

Tax season may not be everyone’s favorite time of year, but here in the Outer Banks, we know that generosity is at the heart of our community. Our local nonprofits do incredible work every day—whether it’s helping families in need, preserving our natural environment, or supporting education and the arts. Here at the Outer Banks Community Foundation, we want to make sure your charitable giving is not only meaningful but also as tax-efficient as possible. Whether you already have a donor-advised fund with us or you’re considering starting one in 2025, here are a few key tax tips to help you make the most of your generosity. And remember, we’re always here to help!

1. Do I Need to Itemize to Deduct Charitable Contributions?

If you’re giving to charity and hoping to deduct those gifts on your taxes, you’ll need to itemize your deductions instead of taking the standard deduction. For 2024 (the tax return you’ll file in 2025), the standard deduction is $14,600 for single filers and $29,200 for joint filers. That means if your total deductions don’t exceed those amounts, you won’t be able to claim a tax break for your charitable donations. If you’re looking ahead to 2025 and beyond, we’d love to chat about how a donor-advised fund can help you maximize both your giving and your tax savings while continuing to support the causes that make our Outer Banks community so special.

2. Do I Need Receipts for Every Gift I Make?

Not if you’re giving through a donor-advised fund! One of the perks of having a fund at the Outer Banks Community Foundation is that you only need to keep track of one tax receipt—the one for your contribution to your fund. After that, you can make grants to your favorite charities throughout the year without worrying about collecting separate receipts from each organization. This means more time focusing on the impact your gifts are making here in the Outer Banks, whether that’s funding a local food pantry, supporting environmental conservation, or helping students achieve their educational dreams. Plus, donating appreciated stock instead of cash could give you even greater tax benefits. We’d be happy to walk you through how that works!

3. What Kind of Paperwork Do I Need for My Donations?

For gifts over $250, the IRS requires a written acknowledgment from the charity. When you contribute to your fund at the Community Foundation, we provide that documentation for you. If you’re donating non-cash assets valued at $500 or more, you’ll need to fill out IRS Form 8283, and if the donation is worth more than $5,000 (such as real estate or privately held stock), you may need a professional appraisal. If you’re not sure, just ask—we’re happy to help. We want to make sure your generosity continues to fuel the amazing work being done by our Outer Banks nonprofits.

4. How Much Can I Deduct for Charitable Contributions?

If you’re donating cash to a public charity (including your fund at the Outer Banks Community Foundation), you can deduct up to 60% of your adjusted gross income (AGI). If you’re giving non-cash assets, such as appreciated stock or real estate, the deduction limit is 30% of your AGI. Donating appreciated assets can be a smart move because it allows you to avoid capital gains tax while still supporting the causes you care about. The Community Foundation can sell these assets tax-free, leaving more in your fund to support local nonprofits like those that provide scholarships, assist families in crisis, or protect our beautiful shoreline.

5. What About IRA Distributions?

If you’re 70 ½ or older, you may want to consider a Qualified Charitable Distribution (QCD) from your IRA. You can give up to $108,000 in 2025 directly to certain types of funds at the Community Foundation (like designated or unrestricted funds, though not donor-advised funds). This can count toward your required minimum distribution without adding to your taxable income—a win-win for you and the Outer Banks causes that matter most to you.

Let’s Make Giving Easy

No matter where you are in your giving journey, the Outer Banks Community Foundation is here to help. Your generosity is what makes this community so extraordinary, and we want to ensure that your giving is as simple and effective as possible. Whether you need guidance on tax-smart giving strategies, want to start a fund, or just have questions, we’re happy to talk. Giving should feel good, and your contributions are making a real difference here in the Outer Banks. Reach out anytime—we’d love to help you support the nonprofits and programs that make our community such a special place to call home.