President Proposes Changes to Charitable Contribution Limitations

This month, the Obama administration released its 2017 fiscal year revenue proposals, which included a proposal to streamline the current charitable deduction limitations and a proposal to extend the carry-forward period for contributions in excess of the charitable deduction limitations from five years to fifteen years.

Current Law:

A donor's charitable deduction is limited based on the type of charitable organization receiving the donation, the type of property donated and how the property donated will be used by the charitable organization.

If a donor contributes cash to a public charity, the donor's deduction is limited to 50% of his/her adjusted gross income. If the same cash contribution is made to a private foundation, the donor's deduction is limited to 30% of his/her adjusted gross income.