3 Smart Ways to Give to Charity Under New Tax Law
Starting in 2018, the tax deduction that giving to charity provides may be no longer be available to many people. That is, unless they change the way they give. Here are three strategies to help keep the deduction many count on.


The 2017 Tax Cut and Jobs Act makes significant changes to the tax code that will impact many taxpayers. While the tax act’s main beneficiaries are corporations (a single 21% corporate tax rate now applies), individuals may also benefit from lower rates and a higher standard deduction.
Perhaps the single biggest change for individuals is a $10,000 cap on state and local tax (SALT) deductions. Taxpayers in states with high income taxes and high real estate property taxes — like New York, New Jersey and California — will be most affected. The Tax Policy Center estimates this change will reduce the number of taxpayers who itemize from 37 million to about 16 million. Capping the SALT deduction may have a ripple effect for some taxpayers — meaning their previously itemized deductions (including charitable deductions) won’t exceed the new standard deduction.
For taxpayers who have a history of making charitable contributions, making sure those contributions have maximum tax benefit may require some additional planning. Let’s review some strategies that could help minimize your tax bill while also helping to do good.

Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
A Chunky Way to Give to Charity
The first strategy involves “chunking” two years of charitable deductions into one tax year. By making charitable contributions in January and December of the same year (think of the December contribution as paying one month in advance), taxpayers may be able to claim itemized deductions in the year of their charitable gifting and take a standard deduction in the alternate year. This need not change one’s gifting level, merely the timing.
Another Helpful Way to Give: Donor Advised Funds
A slightly different method to take advantage of the “chunking” strategy is to again make multiple-year charitable gifts in one tax year, but this time via a donor advised fund (DAF). Contributors to DAFs receive a tax deduction in the year of contribution, while retaining control over the timing of the distribution to the charity of their choice. To illustrate, John & Mary Smith gift $25,000 of appreciated stock to a donor advised fund with their area community foundation in 2018 and deduct this charitable contribution on their 2018 tax return. John & Mary can make distributions from their DAF to support various charities of their choice, perhaps over the next several years.
Finally, You Can Tap Your IRA
Finally, another strategy only available for taxpayers over age 70½ and involves making a qualified charitable distribution (QCD) directly from one’s IRA. A QCD counts towards one’s required minimum distribution (RMD) but is not included in taxable income on the tax return. This strategy results in the taxpayer getting the benefit of the charitable contribution (through lower income) irrespective of whether they itemize deductions.
As with any tax strategy, one needs to consult a tax professional on whether certain strategies apply to their specific circumstance. The good news is with advance planning you can make the new tax law work to your benefit.
Get Kiplinger Today newsletter — free
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

Mike Palmer has over 25 years of experience helping successful people make smart decisions about money. He is a graduate of the University of North Carolina at Chapel Hill and is a CERTIFIED FINANCIAL PLANNER™ professional. Mr. Palmer is a member of several professional organizations, including the National Association of Personal Financial Advisors (NAPFA) and past member of the TIAA-CREF Board of Advisors.
-
Donating Complex Assets Doesn't Have to Be Complicated
If you're looking to donate less-conventional assets but don't know where to start, this charity executive has answers, such as considering a donor-advised fund (DAF) for its tax benefits and ease of use.
-
Travel trends you can expect this summer
The Kiplinger Letter Domestic trips will trump foreign travel amid economic uncertainties, though some costs are down.
-
Donating Complex Assets Doesn't Have to Be Complicated
If you're looking to donate less-conventional assets but don't know where to start, this charity executive has answers, such as considering a donor-advised fund (DAF) for its tax benefits and ease of use.
-
Think a Repeal of the Estate Tax Wouldn't Affect You? Wrong
The wording of any law that repeals or otherwise changes the federal estate tax could have an impact on all of us. Here's what you need to know, courtesy of an estate planning and tax attorney.
-
In Your 50s? We Need to Talk About Long-Term Care
Many people don't like thinking about long-term care, but most people will need it. This financial professional recommends planning for these costs as early as possible to avoid stress later.
-
Social Security Pop Quiz: Are You Among the 89% of Americans Who'd Fail?
Shockingly few people have any clue what their Social Security benefits could be. This financial adviser notes it's essential to understand that info and when it might be best to access your benefits.
-
Such Attractive Yields in High-Grade Munis Are Rare and May Not Last Long
According to this munis expert, the last time munis were this cheap was a brief period in 2023. If you kicked yourself for missing out then, you have a second chance now.
-
Financial Analyst Sees a Bright Present for Municipal Bond Investors
High-tax-bracket investors have an excellent opportunity to secure low-volatility, high-quality returns at yield levels rarely seen in over a decade.
-
I'm an Insurance Pro: How Not to Get Dumped by Your Insurance Agent
Your insurance agent or broker might show you the door if you do any of these five things. Being a good customer is about more than paying your bill on time.
-
Two Estate Planning Issues You Should Never Overlook
This estate planning attorney explains why proper asset titling and beneficiary designations make a big difference when it's time to transfer your wealth.