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Gifts To Charity In 2012 May Beat 2013 Taxwise
Source: Forbes.com  ·  Nov. 30, 2012  ·  Excerpt

Tax uncertainty for 2013 makes 2012 a good time for charitably-minded folks to set up donor-advised funds and make outright gifts to charity.

With large charitable gifts, donors aim to be tax-efficient, so the uncertainty about next year’s tax laws is putting donors in a bind. The conventional wisdom says to defer charitable donations until 2013 when higher income rates are set to kick in, as the tax deduction for making the gift will be worth more. But there’s a big caveat: because deductions might be limited next year, it might make more sense for high-income folks to make donations and take deductions by year-end 2012, says Carol Kroch, head of wealth planning with Wilmington Trust.

“If you can afford to make the donation now, you know where you stand, and you’re getting the money to the cause you care about, and charities need it,” Kroch says. “The deduction could be worth more next year, but it could be worth less.”

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Our take
It's a main part of our job at Compass Pointe to monitor changes in the tax code so you don't have to. Higher income tax rates for 2013 will impact all of us in different ways, but in terms of charitable donations each person's situation and strategy will be especially nuanced.

Let us determine a comprehensive giving plan for your organization or clientele by answering the following questions:

  • What tax changes are scheduled to take effect in 2013, and how will they impact my organization or the clients it serves?
  • How can my organization or consitutents plan throughout the year for tax season? What is the best way to monitor tax laws and how can I put ongoing knowledge into the hands of my organization?
  • Contact Compass Pointe now

 

 
 
       
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