My wife and I would like to give some of our estate to charity. What are the rules?

The IRS divides charities into two general groups: 50-percent charities and 30-percent charities.
Generally, churches, schools, hospitals, governmental units and certain qualifying foundations are considered 50-percent charities. Other organizations that don’t qualify as 50-percent charities are considered 30-percent charities.

Gifts to qualifying charities are subject to different rules and depend upon the gross income of the donor, whether or not the donor is an individual or a corporation, the type of property donated, and whether the donee is a 50-percent or a 30-percent charity.

If you, as an individual, want to donate cash to a 50-percent charity, the total available deduction is limited to 50 percent of your adjusted gross income (with a five year carryover). If you donate cash to a 30-percent charity, the total deduction is limited to 30 percent of your adjusted gross income (with a five year carryover).

If you wish to donate property, the limitations depend upon whether the property is ordinary income property, long-term capital gain property or tangible personal property unrelated to the charity’s purposes.

Qualified appraisals are usually required for non-cash gifts valued at more than $5,000 and closely-held stock worth more than $10,000.