Charitable Gift Percentage Limitations

Charitable deductions for a particular tax year are limited by certain percentages of an individual’s adjusted gross income (AGI). These are the limitations:

  • Gifts of cash and ordinary income property to public charities and private operating foundations are limited to 60% of AGI. Any excess may generally be carried forward up to five years.

  • Gifts of long-term (held 12 months or more) capital gain property to public charities and private operating foundations are limited to 30% of AGI. The same five-year carry-forward is possible.

  • Donors of capital gain property to public charities and private operating foundations may use the 50% limitation, instead of the 30% limitation, where the amount of the contribution is reduced by all the unrealized appreciation (nontaxed gain) in the value of the property.

  • Gifts of cash, short-term (held less than 12 months) capital gain property, and ordinary income property to private foundations and certain other charitable donees (other than public charities and private operating foundations) are generally limited to the item’s cost basis and 30% of AGI. The carry-forward rules apply to these gifts.

  • Gifts of long-term (held 12 months or more) capital gain property to private foundations and other charitable donees (other than public charities and private operating foundations) are generally limited to 20% of AGI. There is no carry-forward for these gifts.

  • Charitable contribution deductions by corporations in any tax year may not exceed 10% of pre-tax net income. Excess contributions may be carried forward up to five years.

 


This text is provided with the understanding that ECFA is not rendering legal, accounting, or other professional advice or service. Professional advice on specific issues should be sought from an accountant, lawyer, or other professional.

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