Before we know it, the holiday season will be upon us along with certain year-end deadlines, including the December 31st deadline for making tax-deductible charitable contributions for tax-year 2017. As we prepare to enter what is traditionally the giving season, keep the following tips in mind when making charitable donations:
- Qualified charitable organizations are required to provide written confirmation for any cash donations over $75; keep your receipts for tax-filing purposes.
- If you donate property other than cash to a qualified organization, you may generally deduct the fair market value of the property. If the property has appreciated in value, however, some adjustments may have to be made.
- Avoid scams by verifying organizations before you give by visiting www.charitynavigator.org,www.charitywatch.org or www.irs.gov/charities-non-profits/contributors.
- Those over age 70 ½ with qualified retirement accounts who are subject to required minimum distributions (RMDs) have the option of making a Qualified Charitable Distribution (QCD) in place of an RMD. QCDs permit a direct transfer of up to $100,000 from your IRA to a qualified charity and automatically satisfy RMDs for the year the QCD is made. However, funds that have already been distributed from an IRA to the IRA owner, and are then contributed to charity, don’t qualify as a QCD.
To learn more about these and other charitable giving strategies, contact our office at 330-598-2208