Tax Value of Charitable Giving
Charitable gifts can be a valuable component of your overall tax and estate plan. Tax considerations are critical to maximize philanthropic benefits, both to the groups you support as well as to take advantage of the charitable tax deduction.
Charitable tax benefits are directly related to the contributor's tax rate. An individual in the 35% tax bracket, for example, essentially keeps just $650 of every $1,000 earned. But by giving $1,000 to charity, this individual removes that money from the taxable base by receiving a deduction for the full value of the gift.
In addition to helping donors reduce their tax burdens, charitable contributions are critical to nonprofit organizations. Your gifts will enable your favorite organizations to continue and expand their programs. The tax benefits you get for being a part of the charity's good work is a bonus.
Select a topic below for information that may benefit you as you plan your yearly taxes and your legacy through your estate.The information presented is offered for information and education only. It is not intended and should not be construed as a recommendation or as legal, tax, or investment advice or a legal opinion. You should discuss all charitable and tax issues with your tax and/or financial advisor to determine the best course of action for your specific situation prior to taking any action based upon the information provided.
- Understanding IRS Limits on Charitable Gifts
- Donating Appreciated Assets
- Understanding AMT's Impact on Charitable Giving
- Making Charitable Gifts From Retirement Vehicles
- Exploring the Role of Trusts
- Determining Whether to Invest in Charitable Annuities
- Considering a Donor-Advised Fund or Private Foundation