Charitable giving pitfall – Promissory Note – Maximum Deduction- Long Lasting

As we near the end of the year, many are evaluating their charitable giving desires. While such a great thing to do, there can be a few pitfalls.

Charitable Giving Pitfalls

Watch the promissory note:

You may want to give to your specific charity over a period of years and may even have spoken to your charity concerning this. charity


If you sign something that can be construed as a promissory note, you may have unintended consequences. These can range from loss of the charitable deduction, to an unintended legal binding note to your charity.

The recent tragic death of Aubrey McClendon to his alma mater is a great example.

Duke University Sues Donor’s Estate for $10 Million


In this case there was a good result:

Duke drops claim on late donor’s estate

Maximum Annual Gift Deduction

While most people do not give just for the deduction, appropriate planning may help maximize your tax situation.

This from the IRS:

…..In general, contributions to charitable organizations may be deducted up to 50 percent of adjusted gross income computed without regard to net operating loss carrybacks.  Contributions to certain private foundations, veterans organizations, fraternal societies, and cemetery organizations are limited to 30 percent adjusted gross income ….

Long Lasting

Also be sure to remember that your contribution may last for some time. Thinking of the charity you choose  as long lasting might be helpful as well.

John A. Kvale CFA, CFP

Founder of J.K. Financial, Inc.
A Dallas Texas based fee only
Financial Planning Total Wealth
Management firm.


Leave a Reply