We thought it would be worthwhile to remind our readers about popular approaches for significant year-end charitable giving. In particular, this article will review various charitable planning techniques whereby valuable income tax deductions can be generated currently, but the distributions to charitable recipients, and the decision making about which charitable recipients will benefit, may be postponed to later years.
Although charitable gifts can be made throughout the year, the end of the year is a popular time for donors to make final charitable giving decisions. This is mainly because it’s the last opportunity to generate an income tax deduction for the year through a charitable gift. Also, as the holiday season gets underway, business affairs tend to slow down thereby providing some donors with the greatest giving capability extra time to reflect on more personal matters which include fulfilling charitable objectives. Of course, in many cases, another factor is that it’s the only time of the year for many taxpayers to have a handle on the amount of surplus funds they have available for charitable giving after assessing their net income and expenditures for the year.
