You should consider donating on or before 12/31/17 as the tax law appears to be going to make a major change for 2018. Although it appears that the charitable deduction will remain a lot less people are predicted to be going to itemize. It is predicted that as little as five percent of our population will be itemizing. Let’s see what that could mean to charitable giving.
Although in theory people should give out of the goodness of their heart because “it is the right thing to do” many people are motivated by the tax deduction or just couldn’t give as much without it and as a practical matter the tax deduction is a major motivation of the charitable contribution.
Although most people benefit from making the charitable, or any, deduction in the earliest possible year, there can be some cases where the person or business should wait until a later year due to their individual facts and circumstances, which is why you should consult with your tax attorney before doing any transaction.
The “when” to make a charitable deduction may often be dictated by the individual’s facts and circumstances, with a possible heavy influence on the financials the “where” is often greatly influenced by highly personal factors. The donor may give to a particular charity that fights a particular disease because that disease has stricken the family of the donor or the donor may believe in a particular cause whether it is for education or animals or to help a particular group of people or animals or causes.
Many would agree that charitable giving is a good thing, that is encouraged by the government with a corresponding tax deduction but the giver should be wary of making sure that he or she is supporting what he or she thinks he or she is supporting. Unless the giver is familiar with all the facts the charity should be investigated to determine if it is really doing what it says and that it is spending your money primarily for the charitable purpose and not for its own expenses, such as the salaries of the directors and officers and that the charity qualifies for a tax deduction before any contribution is made.