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How to Maximize Potential Tax Benefits with Cash Gifts

There are many ways you can make the most of your cash donations. Here are a few things to keep in mind:

The Faithful Journey Foundation understands the importance of allocating the resources entrusted by donors to the causes that they value most of all. A Donor Advised Fund (DAF) empowers you to make tax-deductible contributions—cash, stocks, securities, and other financial assets—into a charitable giving account, and then you can recommend grants to the charities the Lord has put on your heart to support.

Bunch contributions through a Donor Advised Fund
  • Exceed the standard tax deduction by “clumping” gifts into a DAF in an amount that allows you to itemize your gifts.
  • Immediately utilize the tax deduction afforded by a DAF, then allocate the funds to preferred charities later.
Make the most of the charitable deduction
  • Cash gifts are eligible for up to 60% of your adjusted gross income (AGI).
  • Non-cash gifts limited to a deduction of 30% AGI can be paired with cash gifts—bringing the combined deduction all the way up to 60% AGI.
Qualified charitable distributions and IRAs
  • From an established IRA, make a qualified charitable distribution (QCD) directly to a charity.
  • Limitations Include:
    • You must be 70 ½ or older
    • Distributions are capped at $100,000 annually
    • Limited to public charities (DAFs, CRTs, and CGAs do not qualify)
  • Any distribution to a specially crafted, single-charity fund at the Faithful Journey Foundation qualifies as a QCD.