What’s Your Charitable Donation Deduction?

by: Smith and Howard

January 28, 2017

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Giving to charity can provide not only large tax deductions, but also the satisfaction of doing good. On top of that, it’s one of the most flexible tax planning tools because you can control the timing to best meet your needs. Before you donate, it’s critical to make sure the charity you’re considering is indeed a qualified charity and is eligible to receive tax-deductible contributions.

The IRS’s online search tool, Exempt Organizations Select Check, can help you more easily find out whether an organization is eligible to receive tax-deductible charitable contributions. Information about organizations eligible to receive deductible contributions is updated monthly.

The following chart provides a quick synopsis of allowable deductions.

Note: Your annual charitable donation deductions may be reduced if they exceed certain limits based on your adjusted gross income (AGI), the type of donation and the type of charity receiving the donation. If you receive some benefit from the charity in connection with your donation, such as services or products, your deduction must be reduced by the value of the benefit you receive. Various substantiation requirements also apply. Consult your tax advisor for additional details.

Donation Deadlines

To take a 2016 charitable donation deduction, the gift must have been made by Dec. 31, 2016. According to the IRS, a donation generally is “made” at the time of its “unconditional delivery.”

  • For a check, it’s the date you mail it.
  • For a credit card, it’s the date you make the charge.
  • For a stock certificate, it’s the date you mail the properly endorsed stock certificate
    to the charity.

To ensure your gifts do as much as possible for both your favorite charities and your tax bill, be sure to properly document each gift, contact anyone in our tax department at 404-874-6244 or visit the Charitable Giving section of our online tax guide.

How can we help?

If you have any questions and would like to connect with a team member please call 404-874-6244 or contact an advisor below.