Benjamin Franklin wrote to a friend in 1789, “In this world, nothing is certain except death and taxes.” Ben was half right. Taxes are optional. At death, anyway. They are optional even for taxpayers with estates large enough to owe state or federal estate tax. They are also optional for taxpayers who have funds subject to income tax at their death, such as amounts remaining in their retirement accounts. The solution? Give the taxable assets to charity.

Each year, many of us breathe a collective sigh of relief when April 16 rolls around. Aside from those filing for extensions, and aside from those few who are affected by lesser-known categories, the majority of Americans have completed the filing of their annual income tax returns. And for most, the relief is not just from having fulfilled their federal obligations, but also from having met their obligations under the tax filing requirements of states, cities, and other districts.

Now that the frenzy of “tax season” is over, we can shift gears and look at issues we pushed aside prior to April 15. One of the most frequent questions we at PG Calc receive from our clients is regarding the “tax savings” line on the Summary of Benefits Projection chart. And in order to understand the tax savings concept, we need to understand the charitable income tax deduction. For planned giving professionals, the charitable deduction has always been at the focus of the process, rather like the proverbial pot of gold at the end of the rainbow.