As we head into the final weeks of the year, it’s not too late to review your charitable giving, though it’s getting close. If you haven’t done so already, with tax changes taking effect in 2026, this may be an important time to revisit your strategy.
Here are several charitable planning ideas to consider:
- Donate appreciated securities: If you own stock that has risen significantly in value above the price you paid for it, donating the shares can be more efficient (meaning beneficial to you) than giving cash. You may receive a deduction for its full market value while avoiding capital-gains tax on the appreciation.
- Utilize a donor-advised fund (DAF): Funding a DAF in 2025 may allow you to take a deduction this year. Then you can recommend grants from the DAF to qualified nonprofits over time, with no time limit under current law. Contributions are irrevocable; grants do not create new deductions.
- Consider “bunching” donations: If your itemized deductions typically fall below the standard deduction, grouping several years’ worth of charitable giving into one year can help make itemizing more beneficial and potentially increase your tax benefit. Utilizing a DAF can be very effective in this situation.
Watch for the 2026 rule change: Beginning in 2026, a new 0.5% Adjusted Gross Income (AGI) floor – essentially your income after certain IRS-allowed adjustments, will apply before charitable contributions become deductible. If you have flexibility, making larger gifts in 2025 may provide you with greater tax advantages.
Thoughtful planning can help you support the causes you care about and receive a greater tax benefit from your charitable giving, especially given changing tax rules. If you’re considering year-end giving,call us right away to explore the best strategy for you.
