2018 Year End Charity Planning

As we enter the holiday season,  please be reminded that cash and in-kind donations are deductible with specific rules up to 60% of a taxpayers AGI (up from 50%).      To claim a deduction for a cash, check or other monetary gift you must have a written confirmation from the charity.    This typically would include name of organization, date and amount of the gift.   Charities are required to provide written acknowledgement for donations over $250.   (Contributions under this amount can rely on a bank record or canceled check)   Please note any good or services received with any donation must be stated on the receipt.

Things to Consider

  • Gift fund contributions must be established and funded in 2018 to qualify as a gift.   (payments to charity can be made anytime)
  • The large increase in standard deductions for 2018 may cause your charitable giving to be not deductible.   Consider bunching these in 2018 or 2019 to maximize your tax benefit
  • Evaluate the tax impact of gifting long-term appreciated stock vs cash
  • If you are over 70 1/2 consider a qualified charitable distribution (QCD) from your IRA up to $100,000
  • Charitable Gifts charged on your credit cards but not paid until 2019 are fully deductible
  • Make gifts to individuals this holiday season.   Each taxpayer can gift $15,000 this year ($30,000 if married) to any individual with no paperwork required

Qualified Charitable Distribution