Common Charitable Gift Mistakes

Carol G. Kroch, Esq., Managing Director, Wealth and Philanthropic Planning, of Wilmington Trust, writes about common mistakes individuals make when making charitable gifts. Her article, begins as follows:

Many donors not only want to do “good,” but want to ensure that they also do “well” with their charitable gifts, making them as meaningful as possible to their values, as useful as possible to the charities they benefit, and as tax-efficient as possible.

Sometimes the best way to learn is through the mistakes of others. Hopefully, by being aware of some common pitfalls people make in charitable giving, you can make your gifts meaningful, useful, and tax-efficient.

Key points Ms. Kroch makes include the following:

  • cash is not always king
  • an unacknowledged gift of over $250 is a nondeductible gift
  • beware of gifts of closely held and s corp stock
  • don’t forget your ira assets can be left to charity
  • never give a yacht to a land-locked college
  • don’t forget to obtain a timely qualified appraisal for donated property
  • run the numbers before you give
  • don’t waste your timing  giving more than is deductible
  • don’t give money unrestricted if you have a special project in mind
  • make sure you have a gift agreement for large charitable gifts
  • don’t wait until interests rates increase to create a charitable lead trust
  • watch out for private foundation rules
  • be sure to communicate with your family about your philanthropic legacy

Read the full article at Donor Remorse: Common Mistakes in Charitable Giving.

Posted by Lewis J. Saret, Co-General Editor, Wealth Strategies Journal.