Clients may choose to include charitable planning in their overall plan design as charitable contributions will almost always reduce personal income taxes. Thus, the higher your tax bracket, the lower the after-tax cost of a charitable contribution. As a result, you may find that you can contribute more on an annual basis than you originally thought.
For tax purposes, the IRS defines charitable gifts as complete and irrevocable transfers of money, property or other assets to IRS-recognized charities. In order to receive tax-saving benefits from giving to charitable causes, your gift must be completed – generally with no strings attached – and irrevocable (it cannot be reversed or withdrawn) to an IRS-recognized charity.