As most of you know, more charitable donations are made during November and December than in the preceding 10 months. However, 2012 presents some real challenges in determining when and how much to give, especially for those in the top tax bracket.
While we all know that philanthropy is not driven by the desire for a tax deduction, we also all know that it sure does not hurt the process. For someone in the top federal tax bracket of 35 percent, making a gift of $10,000 in 2012 will result in an “after tax” cost of only $6,500 for that donation. In a sense, they are doing something good for the organization and directing $3,500 that would have gone to the federal government to go, instead, to a worthy organization of their choice.