New Tax Law and Charitable Giving
New Tax Law and Charitable Giving By Brad Bedingfield, Esq. Hemenway & Barnes LLP Brad Bedingfield Last December’s federal tax law changes (many of which expire at the end of 2025) may affect incentives for individuals and businesses to make charitable contributions. While many popular strategies for saving taxes by making charitable gifts – for example, making gifts of appreciated property, or direct charitable IRA rollovers – remain effectively unchanged, other gifting strategies may no longer work as intended from a tax perspective. It is likely only a particular subset of donors will be significantly affected by these changed tax incentives. Donors who were non-itemizers before these changes are likely to remain so and will see no meaningful change in tax incentives for charitable giving. Conversely, many donors who were itemizers before will likely remain so, and still have plenty of incentives to find tax-efficient ways to reduce the burden of income or estate taxes by making charitable gifts. Those on the borderline between itemizing and non-itemizing may need to review the timing and sources of gifts in light of the new law – however, the charitable impulse is the overriding consideration in giving, and nothing in [...]