According to a 2008 survey by Charity Navigator, 29% of all charitable giving occurs between Thanksgiving and Christmas.  That is a huge percentage of giving within the last 5 weeks of the year.  At eyespeak, we have several non-profit clients and we would like to take this opportunity to plug them and talk about year end giving.

The IRS has very specific guidelines for charitable donations.  As each person’s and/or business’ situation is extremely fact dependent for tax matters, please consult your tax professional before applying any of these general concepts to your year end giving strategy.

This is the last year that certain IRA owners are able to transfer funds tax-free to a charitable organization.  Owners who are 70 1/2 years of age or older can transfer up to $100,000 tax free to an eligible charitable organization.  (Donor advised funds and supporting organizations are among those that are not eligible.)  The contributions must be direct transfers from the IRA trustee.  These deductions are not-taxable, however they are also not deductible.  These distributions do count toward the minimum annual distribution requirements.

Clothing and household items qualify for a deduction, however, they must be in a good used condition or better.  Items that are valued at over $500 and are accompanied by a qualified appraisal are not required to be in a good used condition or better.

Monetary donations are also deductible provided the donations occur prior to December 31, 2009.  This includes credit card charges that are not payable until 2010.  All other donations must be given or postmarked on or before December 31, 2009.

Stock gifts are considered deductible on the date that the ownership of the stocks changes hands on the books of the corporation, or on the mailing date if the stock certificate is properly endorsed.

Most non-profit organizations have detailed gift acceptance policies that can assist you in your year end giving.  Please contact the organization if you will be transferring stocks, IRA funds, real-estate, vehicles, or other non-cash items.

Please remember that availability of a deduction for your year end gifts are dependent on your individual facts and circumstances.  We encourage you to contact your tax professional prior to any year end giving to determine the best course of action for you

Here is a list of non-profit organizations that we wholeheartedly endorse:

City of Refuge, Chooseaneed, North Point Ministries, Perimeter Church, Ravi Zacharias International Ministries,