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Strategies for tax-smart giving

Key Takeaways

  • Because of the new tax laws, giving this year could offer better tax benefits versus waiting—particularly if you itemize your taxes.
  • Bunching donations—accelerating multiple years’ worth of gifts into one—can help you exceed the standard deduction or increase tax savings if you are itemizing.
  • Donating stocks or cryptocurrency can help avoid capital gains taxes as well as create an income tax deduction.
  • With a donor-advised fund, you make an irrevocable contribution and take an immediate tax deduction. Your contribution is invested for potential tax-free growth, and you can make grant recommendations to IRS-qualified charities.

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This information is intended to be educational and is not tailored to the investment needs of any specific investor.

Investing involves risk, including risk of total loss.

Crypto as an asset class is highly volatile, can become illiquid at any time, and is for investors with a high risk tolerance. Crypto may also be more susceptible to market manipulation than securities. Crypto is not insured by the Federal Deposit Insurance Corporation or the Securities Investor Protection Corporation. Investors in crypto do not benefit from the same regulatory protections applicable to registered securities.

Neither FBS nor NFS offer a direct investment in crypto nor provide trading or custody services for such assets.

The tax information provided is general and educational in nature, and should not be construed as legal or tax advice. Fidelity Charitable does not provide legal or tax advice. Content provided relates to taxation at the federal level only. Charitable deductions at the federal level are available only if you itemize deductions. Rules and regulations regarding tax deductions for charitable giving vary at the state level, and laws of a specific state or laws relevant to a particular situation may affect the applicability, accuracy, or completeness of the information provided. As a result, Fidelity Charitable cannot guarantee that such information is accurate, complete, or timely. Tax laws and regulations are complex and are subject to change; changes may have a material impact on pre- and/or after-tax results. Fidelity Charitable makes no warranties with regard to such information or results obtained by its use. Fidelity Charitable disclaims any liability arising out of your use of, or any tax position taken in reliance on, such information. Always consult an attorney or tax professional regarding your specific legal or tax situation.

Views expressed are as of the date indicated, based on the information available at that time, and may change based on market or other conditions. Unless otherwise noted, the opinions provided are those of the speaker or author and not necessarily those of Fidelity Investments or its affiliates. Fidelity does not assume any duty to update any of the information.

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