PricewaterhouseCoopers 2008 Guide to Tax and Financial Planning

Chapter 8. Charitable Giving

This chapter examines the tax rules governing charitable contribution deductions, including gifts that qualify for the deduction, as well as timing issues, valuation issues, and qualified charitable organizations. Also discussed are some of the different charitable giving vehicles that can provide meaningful tax benefits while helping you achieve your charitable objectives.

Charitable Deductions

To receive a tax benefit from a charitable contribution, donors must itemize deductions on their tax return. Specific rules relating to donations determine whether a deduction can be claimed for a charitable contribution. A charitable deduction will be allowed only after the rights of actual possession in the donated property shift from the donor (and those parties related to the donor) to a qualified charitable organization. In addition, specific tax rules apply to donations of tangible personal property as well as to the type of charitable organization receiving the donation.

A contribution is considered made when delivery occurs. For example, mailing a check to a charitable organization constitutes an effective contribution on the date of delivery or mailing (identified by the postmark date). As a result, a check mailed December 31 will qualify the gift for a charitable deduction for that tax year. Similarly, a gift of a properly endorsed stock certificate will be considered completed on the date of delivery or mailing to the charity. Alternatively, if the stock ...