What
Is a Charitable Gift?
A charitable gift
is a donation of cash or other property to, or for the interest of, a
charitable
organization. The gift is freely given with the primary intention
of benefiting the charity.
Whether given during
lifetime or after death, charitable gifts are eligible for a tax
deduction, but only if
made to a qualified charitable
organization. For example, you
may
have a relative who has fallen on hard times, someone you choose to
help
with gifts of cash. While you may be motivated by charitable
intentions
in making these gifts, you cannot deduct them for either income tax or
estate tax purposes.
In general, qualified
charitable organizations include
churches,
temples, synagogues, mosques and other religious organizations,
colleges
and other nonprofit educational organizations, museums, nonprofit
hospitals,
and public parks and recreation areas. Gifts to these types of
organizations
qualify for a federal income tax deduction if made during your lifetime
or, if made after your death, can be deducted from the value of your
estate
for federal estate tax purposes.
Why
Consider a Charitable Gift?
People give to charities
for a variety of reasons. They give:
Because
they have compassion
for the less fortunate.
From a
belief that they
owe something back to society.
To support
a favored
institution or cause.
For the
recognition
attained by making substantial charitable donations.
To
benefit from the
financial incentives our tax system provides for charitable gifts.
|
According
to the Giving USA Foundation, individual giving
accounted
for almost 75% of all contributions to charitable organizations in 2007.
Source:
Giving USA FoundationTM - Giving USA 2008
|
Whatever your
reasons
for giving, a careful review of the various types of charitable gifts
can
help make those gifts more meaningful, both to you and to the charities
you choose to support. Please call my office if we can be of
assistance.
