It's a good idea to keep a list of the donations you make each year. If you don't have a list for this year's contributions, start by looking at last year's tax return. You and your tax advisor can determine whether you will itemize your donations or take the standard deduction.
Individuals age 70½ and older, who made a qualified charitable distribution (QCD) from their individual retirement account (IRA), should keep a copy of their acknowledgement letter with their tax records. While a QCD is not tax-deductible, it saves taxes by reducing a donor's taxable income (AGI). More information about how to record a QCD on your tax return can be found on the IRS website.
For the coming year, plan out your contributions in advance and consider making all donations at one time in celebration of a special event or day. You can also choose to make contributions on a certain day each month. Sticking to a schedule can help your charitable gifts go further and make your recordkeeping easier.
Whether you itemize or take the standard deduction, a tax-saving strategy like gifting appreciated securities or giving from your IRA can maximize the impact of your philanthropy.
To learn more about tax-smart giving strategies, check out our section on retirement funds or download our Advisor's Guide.
Contact Information
Inquiries are welcome and confidential:
Jeannette Edwards
Director of Development
jeannette.edwards@pennmedicine.upenn.edu
610-431-5110
The Chester County Hospital Foundation does not offer tax or legal advice, and encourages you to consult with your own advisors regarding this information.