Charitable Donations

Charitable giving provides you with an opportunity to make a donation to benefit the mission of organizations that are important to you. Although charitable giving is not a tax-motivated transaction, it is important to understand the tax implications associated with your charitable giving.

Donations come in many forms. For example, donating noncash items to charitable (non-profit) organization with a total value of more than $500, requires a Form 8283 to be filed. You also may need to obtain an appraisal for very large contributions. If the donation is cash, a receipt from the charity or a bank record is required to claim a deduction on your tax return.

A limit on itemized deductions exists. For 2009, if your adjusted gross income is more than $166,800 ($83,400 if you are married filing separately), you may have to reduce the amount of certain itemized deductions, including charitable contributions (http://www.irs.gov/pub/irs-pdf/p526.pdf).

Depending on your goals, the following resources provide brief explanations of for different strategies:

Haiti’s Earthquake Relief Deductible in 2009

Noncash Donations

Charitable Giving Strategies

• Charitable Remainder Trusts
• Charitable Lead Trusts Private Foundations
• Donor Advised Funds
• Pooled Income Funds
• Charitable Gift Funds

Life Insurance Leads Way to Charitable Contribution

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