February 6, 2018

Impact of U.S. Tax Reform Related to Charitable Giving

Author John Canady, Chief Executive Officer

The recent changes in the US tax code have made it more important than ever for tax advisors and their clients to discuss and plan charitable giving.

Planning a client’s giving over several years can allow them to make the most of the tax deductions and achieve their philanthropic goals at the same time. Using a donor-advised fund (DAF), donors can set aside a large sum for charity and receive the deduction in the year when it makes the most sense from a tax perspective.  The client can then make grants from the DAF to charities in future years. And for dual US and UK taxpayers, using a dual qualifying donor-advised fund, like NPT-UK, enables the client to receive a simultaneous US and UK tax deduction.

Summary of tax changes related to charitable giving: