Benefits Of Leaving Money To Charities
There are many benefits to leaving money to a charity and to making charitable donations during your lifetime. This blog post will discuss some of these benefits and why it is important to consider making a charitable donation through your will, trust, retirement plan, or other gift. If you would like to learn more about leaving money to charities or have general estate planning questions, our Coventry, RI estate planning lawyer is here to talk.
Social Benefits
One of the most obvious benefits of leaving money to a charity or charities is that this allows you to help others and support the causes that are most meaningful to you. Rhode Island law notes that the goal of a charitable organization can include benevolent, educational, humane, patriotic, social service, civic, philanthropic, scientific, and literary purposes. A financial gift makes sure that you will be able to further goals and causes that align with your beliefs, support a group or organization that has been impactful during your own life, or inspire others to pursue acts and virtues you believe are significant and worthwhile.
Tax Deductions
On federal tax returns, individuals deduct a percentage of their adjusted gross income through itemized deductions on a Schedule A Form. Rhode Island does not provide for itemized deductions on individual returns; instead, the state uses a standard deduction with the exception of contributions to specific charities listed on a checkoff contributions schedule. For certain qualified contributions, individuals may deduct up to 100% of their adjusted gross income. Qualified organizations for charitable deductions include religious organizations, war veterans’ organizations, nonprofit volunteer fire companies, civil defense organizations, nonprofit cemetery companies, and United States foundations organized for goals such as charitable, religious, educational, scientific, or literary purposes, or with the goal of preventing cruelty to children or animals. Furthermore, donations can be made through a cash gift or through another form of property, such as real estate. For charitable gifts of real estate, the property’s fair market value will be used to determine the deduction amount. Charitable deductions made in connection with your estate plan can reduce your estate’s tax liability at both the state and federal level.
Qualified Charitable Distributions
Another method of charitable giving is making a donation via a qualified retirement account. Individuals who are 70 and ½ years old or older and who have a qualified retirement account, like an IRA, can elect to have money transferred directly from the IRA to a qualified charity as a non-taxable distribution. As of 2025, the maximum annual exclusion for a qualified charitable distribution is $108,000 per person or $216,000 for married couples filing jointly ($115,000 or $230,000 for 2026, respectively).
Furthermore, a qualified charitable distribution can satisfy all or part of a person’s annual required minimum distribution amount; this means that, by making a charitable donation, a person avoids having to pay the typical taxes that would apply for an ordinary distribution. For those persons who are required to make minimum IRA distributions but also wish to make charitable donations, qualified charitable distributions are a great way to accomplish both goals without incurring tax liability.
A Lasting Impact On Your Legacy
Making charitable donations can have a variety of positive effects—on both you and society. Be sure to contact our friends at www.apttlaw.com to determine how charitable donations can have a positive impact on your estate plan.
Aptt Law LLC handles estate planning, probate, business law, trust administration, and succession planning for families, entrepreneurs, and business owners. Our founder, Geoffrey M. Aptt, has nearly a decade of legal experience, including advising high‑net‑worth families. Reach out to us today or any time you have estate planning questions or needs.
