Charity Donation Calculator
Maximize your impact. Estimate the tax savings of your charitable contribution to understand the true cost of giving.
Estimate your highest federal bracket.
Estimated Tax Savings
assuming you itemize deductions
True Net Cost of Donation
Note: You typically only save on taxes if your total itemized deductions (including this donation, mortgage interest, state taxes, etc.) exceed the Standard Deduction ($14,600 for singles, $29,200 for married joint filers in 2024).
The Economics of Generosity
Giving to charity feels good, but it can also be a smart financial move. The government incentivizes philanthropy by essentially subsidizing your donations through tax deductions. If you are in a high tax bracket, Uncle Sam might "pay" for 30% or 40% of your gift. Our Charity Donation Calculator helps you do the math so you can potentially give even more.
Standard vs. Itemized Deduction
This is the most critical concept to understand. You have two choices when filing taxes:
Standard Deduction
A flat amount (e.g., ~$14,600 Single) subtracted from your income automatically. Charity does not help here.
Itemized Deduction
Listing every specific expense (Mortgage Interest + State Taxes + Charity). You only do this if the total is HIGHER than the standard deduction.
How Tax Savings Work
If you itemize deductions, every dollar you donate reduces your taxable income by a dollar. The savings depend on your Marginal Tax Rate.
Example: If you donate $1,000 and are in the 32% bracket, you save $320 in taxes. The donation effectively cost you only $680.
Year-End Giving
Need to lower your taxable income before Dec 31st? A large donation can push you into a lower bracket or offset a big bonus.
Donating Stock
Super-strategy: Donate appreciated stock directly. You get the deduction for the full value AND you avoid paying Capital Gains tax. Double win.
Bunching Deductions
Donate $20k every *other* year (instead of $10k every year) to exceed the Standard Deduction threshold and unlock tax savings.
Frequently Asked Questions
Do I need a receipt?
Yes. For any cash donation over $250, you need a written acknowledgment from the charity. For smaller amounts, a bank record keeps you safe.
What about volunteering time?
You generally cannot deduct the value of your time or services. However, you CAN deduct out-of-pocket expenses related to volunteering (mileage, uniforms, supplies).
What is a Donor Advised Fund (DAF)?
A DAF is like a charitable investment account. You donate money *now* (and get the tax deduction immediately), but you can disburse the funds to charities slowly over future years.
Not Tax Advice
This calculator estimates savings based on marginal rates. Actual tax liability depends on many factors (AGI limits, carryovers, AMT). Consult a CPA.
Data Privacy
We do not store your financial data. This calculator runs entirely in your browser.