The benefits of contributing to a public charity, such as a community foundation, are significant, especially when contrasted with the tax treatment offered to other donations. The principal difference is that amount of the gift that can be deducted each year.
Public Charities fall under the 50/30 rule; meaning that a donation of cash can be deducted up to 50% of the donor’s Adjusted Gross Income (AGI) in the year of the gift and up to 30% for long-term capital gains assets.
Private Foundations fall under the 30/20 rule; meaning that a donation of cash can be deducted up to 30% of the donor’s AGI in the year of the gift and up to 20% for long-term capital gains assets.
Baruch Littman is Vice President of Development at The Foundation. Mr. Littman has more than 30 years of development and marketing experience,