Charitable Giving Tax Benefits

As the holiday season for giving and the end of 2005 is upon us, you may be considering making a charitable gift.  There are some recent tax law changes that you might consider. 

On September 23, 2005,  President Bush signed into law new tax incentives for charitable gifts.  Many of the new provisions apply to victims of the Hurricane Katrina, but Congress included additional incentives to help support all charitable organizations as well.

1.   The contribution limit for certain outright gifts of cash has increased from 50 percent of adjusted gross income to 100 percent adjusted gross income.

2.  These same outright gifts of cash also are exempt from the three-percent reduction in itemized deductions for individuals with an adjusted gross income over $145,950.00. 

3.  Cash gifts to a private foundation, supporting organization, or donor advised fun do not qualify for the higher limit or the three-percent rule exemption.

4.  These changes may present some donors with an attractive opportunity to fund outright gifts with assets withdrawn from an IRA or other qualified retirement plan.

5.   Under existing law, the maximum amount of cash contributions that is deductible in any one year is 50 percent o f adjusted gross income. That limit is being increased to 100 percent of adjusted gross income in the case of certain gifts made during the period between August 28, 2005 - December 31, 2005.

It is important to speak with your tax adviser to find out how charitable giving can help you.

Comments

[maygan]

Greetings Andrew;

Here is an article about a wonderful charitable gifting program for you to use and share. Thank you.

You can help a child while promoting your own brand. Forte Promotions, a promotional products company, is offering to give a charitable gift of your choice for every $500 that you purchase. Three charities have been chosen to receive the donations:

Toys for Tots primary goal is to deliver, through a charming new toy at Christmas, a message of hope to needy youngsters. A Teddy Bear will be given on your behalf.

Greater Minneapolis Crisis Nursery works in partnership with parents in crisis and the community to strengthen families and prevent child abuse and neglect. A toddler or youth sweatshirt will be given on your behalf.

Simpson Housing Services provides shelter and affordable housing with support services to homeless men, women and children and assists individuals and families in their effort to improve their life situations. A fleece blanket will be given on your behalf.