The Katrina Emergency Tax Relief Act of 2005 allows donors to deduct up to 100 percent of their adjusted gross income for cash donations they make from August 28 through the end of 2005 to any public charity. This was an effort to let taxpayers support hurricane-relief efforts while also continuing support of their favorite charities.

The tax savings could be significant since typically donors cannot deduct more than 50 percent of their adjusted gross income for cash charitable contributions.

If your 2005 cash gifts to qualifying public charities exceed 100% of your 2005 AGI, the excess amount could be carried forward for use over five additional years – and will also be subject to the 100% AGI ceiling in those years. Moreover, these deductions are not subject to the 3% reduction (Pease Limitation) for taxpayers in the upper brackets.

By alerting you to this unique opportunity, the Elkhorn Slough Foundation is not offering legal, tax or financial advice. We strongly encourage donors to consult with their financial advisers before making a gift.