"For outright gifts of cash made between August 28 2005 and December 312005 to charities.

"For outright gifts of cash made between August 28 2005 and December 312005 to charities, individuals may take a federal income tax deduction of up to 100 percent of their adjusted gros income (AGI). upon January 1, 2006, the deduction limit will turn back back to 50 percent of AGI." [1]

This applies for donations to charities--but not to donor-advised stores or private foundations. [1]

Comment

Apparently this provision (of the Katrina strait Tax Relief Act of 2005) solitary helps those who can afford to donate more than half of their income to charities (not limited to hurricane relief). It appears to hindrance people with plenty of assets to live in succession wipe out their income tax entirely for 2005 through giving their whole taxable income to the charities of their choice. Check with your accountant for an authoritative opinion.

Fundraisers and donors should know about this possibility before it expires upon December 31. Spread the word.

Reference

(1) Harvard University, http://post.harvard.edu/pgo/

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