This is a time of the year when we reflect on what we have and what we can do to help others less fortunate than us. Many people decide to volunteer with a charitable organization; others decide to make a donation to a charity or cause that is important to them. If you decide to help, you should know that you may be able to make your money go further when you use tax-efficient ways to make your charitable gifts.

Charitable contributions to qualified charities must be claimed as itemized deductions on tax returns (Schedule A of Form 1040) in the year the contribution is made in order to obtain a tax deduction. The IRS allows deductions for cash and non-cash charitable contributions based on the rules and regulations. If you itemize your deductions, you may deduct cash contributions for up to 60% of your adjusted gross income. However, depending on the type of organization you contribute to and the type of contribution, you may be limited to 20%, 30%, or 50%. The deduction limit applies to all donations you make in one year, irrespective of the number of charitable organizations you donate to.

Since recent tax law (The 2017 Tax Cut and Jobs Act) almost doubled the standard deduction for most taxpayers, more taxpayers have opted to use the standard deduction rather than itemizing. Opting for the standard deduction means that you no longer can write off charitable deductions. However, there remain several tax-smart ways to give to your favorite charity. Here are some of them.

Gifting Appreciated Securities
Public charities and donor-advised funds accept contributions of publicly traded stock and other securities. When you donate securities that have appreciated in value and have been held for more than one year, it provides you with a potential tax deduction for the fair market value of the securities while also avoiding the capital gains tax on the stock’s appreciation.

Using Tax Loss Harvesting and Combining With a Cash Gift
This strategy may be applicable if you own publicly traded securities that have fallen in price below what you paid for them (their cost basis). If you opt to sell those securities at a loss, your losses may be able to offset any gains you have made from selling other securities that have appreciated in value and/or up to $3,000 of ordinary taxable income per year. If you itemize your deductions, you could then claim a charitable deduction for donating cash from the sale proceeds of the securities you sold at a loss.

In addition, the tax law permits you to carry forward any net remaining loss to offset capital gains or ordinary income in future years.

Giving to a Donor-Advised Fund
With a donor-advised fund, you transfer assets to an account that is administered by a charity. Since you are the creator of the fund, you can recommend what organizations you would like to benefit from your generosity. Generally, the sponsoring charity will try to follow your recommendations, but really has ultimate control over who will receive any grants from the fund.

Your contributions to a donor-advised fund are generally tax deductible in the year you make them. Thus, funding your donor-advised fund in the year that you anticipate itemizing your deductions could provide a tax advantage.

Using a Charitable Trust
A charitable trust enables you to split a gift between a charitable and a non-charitable beneficiary. Two main categories of charitable trusts exist — a charitable remainder trust and a charitable lead trust. With a charitable remainder trust, you or another beneficiary has the opportunity to receive income from the assets you donate. With a charitable lead trust, you name a charity as the income beneficiary of your trust. The named charity receives the annual distributions while the trust is active and in force. At the end of the trust term, the remaining property in the trust returns to you or passes to a person you have designated.

Charitable Gift Annuity
This option allows you to make an irrevocable gift of cash or securities to your favorite charity, which then promises to make fixed payments to you or to another beneficiary for life. When you or the beneficiary dies, the charity keeps what remains of your gift.

Talk with your tax and financial professionals to determine what charitable-giving strategies may align with your situation and your goals.