The American Taxpayer Relief Act of 2012 has changed the tax landscape.  What are the opportunities for a person who wants to make charitable gifts in 2013?

  • The charitable deduction remains in effect, with no cap on deductions.  In the highest tax brackets, the tax savings from a charitable gift are greater now than they were in 2012.
  • In January 2013 only, individuals over 70 ½ who took a distribution from their IRAs in December 2012 may make tax-advantaged charitable gifts from those distributions.  A similar opportunity exists for people who wish to make additional 2012 gifts from their IRAs.  These provisions are only in effect through January 31, 2013; please see here for more details.
  • Individuals aged 70 ½ or older may make gifts – called “qualified charitable distributions” – of  up to $100,000 directly from their IRAs to nonprofits in calendar year 2013.  Please see here for more details.
  • The capital gains rate for upper-income persons is higher than it was in 2012, providing a larger deduction on charitable gifts of appreciated assets.

The Community Foundation welcomes questions about your philanthropy, and encourages you to discuss your individual tax situation with your professional advisor.

Want to learn more?  Visit these links:

Council on Foundations

Tax Policy Center