4 Paws for Ability relies on the donation and support of donors to successfully complete their mission every year. These donations com in all shapes, sizes, and forms! We wanted to share some helpful information from the IRS on End-of-Year Gifts to help those considering making a donation to charity before the New Year!
IRS 2016 End-of-Year Gift Tips
The IRS offers tips on how to execute and document various 2016 charitable gifts. Gifts to qualified public charities, like 4 Paws, are deductible. The information included here was published by the IRS on December 2, 2016.
1. Monetary Gifts – If reducing your taxable estate is an important estate planning goal for you, making lifetime charitable donations can help achieve that goal and benefit 4 Paws. In addition, by making donations during your lifetime, rather than at death, you’ll receive income tax deductions. To take a 2016 charitable donation deduction, the gift must be made by December 31. According to the IRS, a donation generally is “made” at the time of its “unconditional delivery.” The delivery date depends in part on what you donate and how you donate it. Here are a few examples for common donations:
Check – The date you mail it.
Credit card – The date you make the charge.
Electronic Funds Transfer – The date the financial institution executes the transfer.
Stock certificate – The date you mail the properly endorsed stock certificate to the charity.
You must have a bank record or written statement from 4 Paws to qualify for itemizing your deduction. You will need a written receipt if your gift is over $250.
2. IRS Charitable Rollovers – If you are over 70½, you must take annual required minimum distributions (RMDs) from your IRAs (except Roth IRAs) and, generally, from your defined contribution plans (such as 401(k) plans). You also could be required to take RMDs if you inherited a retirement plan (including Roth IRAs). If you don’t comply — which usually requires taking the RMD by December 31 — you can owe a penalty equal to 50% of the amount you should have withdrawn but didn’t.
To make an IRA rollover gift, contact your IRA custodian. The IRA custodian will make a transfer directly to 4 Paws. This transaction will not be reported in your income and therefore is not an itemized deduction. The transfer may fulfill your required minimum distribution (RMD).