Charitable Planning Sample


Hypothetical Case Study

In the hypothetical scenario illustrated below, $250,000 taxable Adjusted Gross Income (AGI) is reduced to $100,000 by contributing to a charitable plan that allows a $150,000 charitable tax deduction. 


60% Deduction to Taxable AGI


This deduction to taxable AGI brings this hypothetical family from the 28% bracket to the 25% bracket (married filing jointly), and reduces the amount of Federal Income Taxes paid by approximately 79.5%!


79.5% Reduction to Federal Income Taxes Paid


In addition to these tax benefits, many charitable plans allow the donor to retain income rights for a set numbers of years or even over multiple generations.

The results: 

Empowerment of deserving charities, an estimated 79.5% reduction to the amount of Federal Income Taxes paid, and a potentially multi-generational source of income!

The benefits could be even greater if a highly appreciated asset is contributed to a charitable plan (e.g. a building or a stock portfolio).  In most cases, you get to eliminate the capital gains tax on the contributed asset on top of the benefits listed above!