Calculating charitable contribution values

Knowing what the charitable contribution limits are does not get you very far, you need to know how to apply these charitable giving ceilings to calculate how much tax deductions you can get from your charitable giving.

The various tax deduction ceiling from charitable giving are applied in specific order, with the total tax deduction for the year limited to 50% of adjusted gross income.

Step 1: Calculate total charitable contributions

Calculate charitable contributions values of all your charitable donations for the year

Step 2: Apply tax deduction limit 50% to 50% limit organizations

If you made charitable donations to 50% limit organizations that qualify for 50% tax deduction, deduct them.

Step 3: Apply tax deduction limit of 30%

Charitable donations to non 50% limit organizations

Apply 30% charitable giving tax deduction ceiling if the charitable donations are to non 50% limit organization, except for charitable contributions of capital gain property subject to the 20% ceiling (see step 5).

Charitable donations to 50% limit organizations

If any charitable contributions to 50% limit organizations were made, including charitable donations of capital gain property that are subject to the 30% ceiling (see step 4), this is the lesser of

• 30% of adjusted gross income, or
• 50% of adjusted gross income - the charitable contributions to the 50% limit organizations