One-year Extension Granted for Three Charitable Tax Breaks

Three important charitable giving tax incentives that were up for permanent approval have, instead, been extended until the end of 2014. They are:

  • The IRA Rollover,
  • The enhanced deduction for donations of food inventories, and
  • Donations of conservation easements

Congress and the POTUS were concerned that a permanent bill would result in substantial deficit. All three giving incentives will have to be reconsidered by the next Congress.

Voice Your Support for Charitable Giving Tax Incentives!

Congress is currently considering making permanent three charitable tax incentives, lumped together as the Supporting America’s Charities Act (H.R. 5806). NOW is the time to voice your enthusiasm for this bill to your state Representatives and Senators. If the bill were to pass, the following giving incentives would become permanent:

  • The IRA Rollover,
  • The enhanced deduction for donations of food inventories, and
  • Donations of conservation easements

Making your opinion heard is easy:

  1. Visit this webpage set up by the National Council of Nonprofits.
  2. Pick a means – phone, email, and/or Twitter – of contacting your Representatives and Senators.
  3. Follow the easy instructions and links. You can even copy and paste a pre-drafted message!

Contact them right away to encourage that this bill gets passed before they adjourn!

Tis the Season… for Clarification on Charitable Contributions

irsAs year-end gifts are considered by both individuals and businesses, now is the time to help them navigate some rule changes that could influence the types and amount of contributions your donors consider.  The IRS issued a press release with a summary of information, which covers:

  • Clothing and household item donations
    • Items must be in good condition for deductions
    • If claiming over $500, a qualified appraisal of the item is required
    • For gifts worth $250 or more, a written acknowledgement from the charity is needed
  • Monetary donations
    • A receipt from the charity is required for any amount

The full IRS press release is available online.