by Bruce Helmer, President of Wealth Enhancement Group

I have encountered nearly every reason imaginable for making contributions to charitable organizations. The most common, however, are the following:

• Compassion for those in need
  
• Religious and spiritual commitment
  
• Desire to perpetuate one's beliefs, values, and ideals
  
• Support for the arts, sciences, and education
  
• A desire to share "good fortune" with others

The tax laws of the United States encourage these gifts by granting tax deductions for them in many cases. If individual citizens voluntarily help meet our country's needs, their contributions reduce the responsibility of the government. Many would also argue that private support of charitable activities is more efficient than public support.

Due to the tax treatment of charitable contributions, individuals may realize not only immediate tax benefits, but also advantages in terms of after-tax cash flow and the size of the estate they may pass on to their heirs. Gifts to charity during one's lifetime or at death, if structured properly, will reduce the estate tax liability. An additional benefit of lifetime gifts is that an income tax deduction is available within certain percentage limitations.