SOP2309. Successful Charitable Gifts: Choice of Donee and Substantiation Compliance

This session will address various types of charitable donees and the factors involved in selecting the appropriate charitable donee to achieve a donor's philanthropic and tax objectives, with a focus on private foundations (including private operating foundations), donor advised funds, supporting organizations, and other types of public charities. The session will also provide an overview of the income tax charitable deduction rules and their impact on selecting the appropriate charitable donee to achieve the client's objectives as well as overview of the strict substantiation rules that the client must adhere to in order to claim a federal income tax charitable deduction, including the written acknowledgement requirement for different types of gifts and donees, the technical qualified appraisal requirements for gifts of property (other than marketable securities), IRS Forms 8283 and 8282. This overview will also highlight potential traps for the unwary and case law developments involving the substantiation requirements following codification of the rules by the Pension Protection Act of 2006.

Learning Objectives:

• Identify how to advise clients on the selection of the appropriate type of charitable donee to achieve the client's philanthropic and tax objectives
• Distinguish substantiation requirements for federal income tax charitable deduction to avoid complete loss of client's deduction
• Analyze the technical requirements for a qualified appraisal under the federal income tax charitable deduction and necessity of strict compliance to avoid complete loss of client's deduction