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Your Charitable Giving and Tax Reform

Planning Your Charitable Giving in Light of the Tax Cuts and Jobs Act of 2017

  1. The charitable contribution deduction: Charitable contributions will continue to be eligible for itemized deduction in 2018. 

  2. Maximize your near-term giving: The new tax law doubles the standard deduction beginning in 2018. Also, the itemized deduction for state and local income and property taxes is capped at $10,000. As a result, some taxpayers who have been itemizing deductions may find that they will no longer itemize in 2018. Taxpayers in this situation may want to accelerate 2018 gifts and complete them by the end of 2017. 

  3. Charitable gifts in 2018: Since some itemized deductions are being limited, some taxpayers may wish to consider increasing their charitable contributions, which may enable them to itemize. However, please be sure to consult your own tax advisers.

  4. Lower tax rates in 2018: Some individuals who will still be able to itemize deductions next year may be in a lower tax bracket after the tax reform law, so a 2017 deduction may be worth more to some taxpayers than a 2018 deduction even if they will be able to continue itemizing deductions.

Can I still make tax-free charitable gifts from an IRA under the new law? Yes, nothing has changed. As long as you are at least 70½ years old and have an IRA, you can continue to make tax-free charitable gifts up to $100,000 directly from your IRA. Learn more about making charitable gifts from your IRA.

Please consult your own advisors before making a charitable gift.

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