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Retirement and Estate Planning

 

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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. Organizations that don’t qualify as 50-percent charities are considered to be 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/recipient 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


National Association for the Self Employed