By Jody Dilday, Philanthropic Advisor
Recent rulings reinforce a familiar but critical message: charitable tax benefits depend on strict compliance.
Strict substantiation matters.
In Gibson v. Commissioner, a substantial noncash charitable deduction was disallowed—not because the gift lacked charitable intent, but because substantiation requirements were not met. Contemporaneous acknowledgments, qualified appraisals, and Form 8283 thresholds are statutory—not optional. Regular reminders to clients can prevent difficult outcomes.
Even though you, as an attorney, CPA, or financial advisor may fully understand the importance of following the rules, you still need to remind your clients regularly. You don’t want a client to ask, “Why didn’t you tell us?” when they learn the hard way that they should have kept better records.
Exempt status requires ongoing alignment.
In Milk Saving Starving Children Foundation v. Commissioner, the IRS’s revocation of 501(c)(3) status was upheld when operations drifted from stated charitable purposes. The case is a clear reminder that mission and activities must remain aligned.
When clients consider supporting lesser-known or newly formed organizations, please reach out. We can provide due diligence insight and offer structured vehicles—such as field-of-interest funds—to safeguard charitable intent.
Our goal is to help ensure your clients’ philanthropy is fulfilled with clarity, compliance, and confidence. Reach out to our team anytime We’re honored to be your first call when charitable giving comes up in client conversations.
