There are laid down guidelines that ought to be known by those looking at their charitable contributions for the coming years.

Year-End Planning

Although tax reforms proposals are still going through the necessary channels and depending on the outcome, may or may pass into law before the end of the year, there is the outline as of press time that would maintain the deduction for various charitable contributions. But, alterations to the brackets and rates would change the value of deductions the for any charitable donations, and any legislation may involve additional limitations for specific types of giving.

With that said, it becomes vital for individuals to put into consideration their giving programs. What may be beneficial will be to accelerate deductions stipulated for 2018 putting into factor the phaseout for high-income taxpayers. It will be best to design donations of property that will require an appraisal as soon as possible. Having to wait until the end of the year may prove futile as it can be challenging to get a qualified appraiser.

Donations of Appreciated Property

Donations of publicly traded stock don't need appraisals, but on the other hand donations of any other property such as artwork, land, and any other property, may need to be appraised.

An IRA owner with a minimum age of 701/2 can give a maximum QCD (Qualified charitable distribution) of $100,000 yearly from the IRA. This distribution is not taxed. The distribution is counted towards the annual RMD (Required Minimum Distribution). In fact, because of the absence of RMD, the distribution reduces the taxpayer's AGI for that particular year, thereby enabling more tax savings.

There are two critical requirements;

• Public charities can only receive QCD. Supporting organizations and Donor-advised funds cannot receive.
• The donation has to be sent via direct transfer from the custodian or trustee to the charity QCDS are limited to only regular IRAs

Donor-advised funds

This is an account or fund in which a donor can provide advice but not dictate the way to invest or distribute amounts placed in the fund. Conservation easements. These are types of special arrangements that enable property owners to take a tax deduction, give interests away, and continue to enjoy the benefits of the property.

Partial interests

Apart from conservation easements, there are other types of donations that allows donors to enjoy the use of their property. They include

• Charitable lead trusts
• Charitable remainder trusts
• Charitable gift annuities

Be prepared

Regarding tax breaks and charitable giving, the future is clouded with uncertainty. Acting before the year runs out is advisable, this gives enough time before the ending of the year to transfer property, engage tax professionals in drafting out needed documents, and obtain appraisals where necessary. Also, developments that could change charitable giving should be watched closely.

The checklist for charitable giving

• Have I selected the property that I want to give away?
• Do I have the needed appraisals?
• Do I know my contribution limits for the year?
• Will it be of benefit if I set up a private foundation

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