As we observe Giving Tuesday, a global occasion dedicated to the spirit of generosity, many investors are seeking ways to create meaningful impact, both within their communities and as part of a thoughtful, long-term financial strategy. Giving back is more than an act of kindness: it’s a powerful way to align your values with your wealth. And in 2025, charitable giving carries an added incentive: a unique window to maximize your tax benefits before major federal tax changes take effect in 2026.  

Whether you’re a longtime philanthropist or someone looking to make a more intentional impact with year-end giving, this guide will help you plan smarter, and potentially save more on taxes.

What’s Changing in 2026? 

Unless Congress acts to extend the provisions of the TCJA, several important tax breaks will sunset on December 31, 2025. Here’s what’s on the line: 

• Standard deduction: The higher standard deduction, which doubled under the TCJA, will revert to 2017 levels (adjusted for inflation). This means fewer taxpayers will continue taking the standard deduction, and more may resume itemizing. 
• Charitable deduction limits: Under current law, cash contributions to qualified charities can be deducted up to 60% of your adjusted gross income (AGI). That’s expected to drop to 50% in 2026. 
• Pease limitation: A cap on itemized deductions for high-income earners may return, limiting the total deduction amount regardless of giving level¹. 

These changes create a powerful incentive to act now, especially for those who itemize deductions or give large gifts. 

Why 2025 Is a Strategic Window 

The tax environment in 2025 remains relatively favorable to charitable donors: 

• Higher AGI limits for cash donations mean you can deduct a larger percentage of income. 
• More predictable laws: We know what the rules are now, but 2026 could bring uncertainty or even retroactive changes depending on the outcome of the U.S. elections. 
• Unique chance to "bunch" deductions: By concentrating multiple years of charitable contributions into 2025, you may surpass the standard deduction threshold and realize a greater tax benefit. 

Let’s walk through a few of the most effective giving strategies available this year. 

Top Strategies for Year-End 2025 Giving 

1. Donate Appreciated Assets 

Instead of donating cash, consider contributing long-term appreciated securities, such as stocks or mutual funds. This approach offers a double benefit: 

• You avoid capital gains tax on the asset’s appreciation. 
• You can deduct the fair market value of the asset (if held longer than one year). 

According to Schwab Charitable, donating appreciated assets instead of cash can increase the impact of a gift by up to 20%². 

2. Use a Donor-Advised Fund (DAF) 

A donor-advised fund lets you make a charitable contribution in 2025 and receive an immediate tax deduction — while retaining the flexibility to distribute the funds to charities over time. 

DAFs are ideal for: 

• Those expecting higher income in 2025. 
• Individuals seeking a one-time tax deduction now but who want to give gradually. 

3. Bunching Contributions 

Instead of donating smaller amounts annually, you can "bunch" multiple years of giving into 2025 to exceed the standard deduction threshold. This strategy is particularly valuable if you’re near the cutoff between itemizing and taking the standard deduction. 

For example, someone who gives $10,000 annually might contribute $30,000 this year to itemize and claim the deduction, then take the standard deduction in 2026 and 2027. 

4. Qualified Charitable Distributions (QCDs) 

If you're age 70½ or older, you can donate up to $100,000 directly from an IRA to a qualified charity, known as a Qualified Charitable Distribution. This counts toward your required minimum distribution (RMD) and isn’t included in taxable income. 

QCDs are ideal for retirees who don’t need all of their RMD and want to lower taxable income. 

What to Track for Tax Filing 

To ensure your charitable gifts are deductible, make sure you: 

• Donate to a qualified 501(c)(3) organization (verify via the IRS’s Tax-Exempt Organization Search). 
• Obtain written acknowledgments for any donation of $250 or more. 
• If donating non-cash assets worth over $5,000, get a qualified appraisal and complete IRS Form 8283. 

Final Tips and Common Pitfalls to Avoid 

• Don’t wait until December 31; some transactions, especially stock transfers or DAF contributions, can take days to process. 
• Avoid crowdfunding gifts that aren’t to IRS-qualified organizations, as these typically don’t qualify for tax deductions. 
• Keep detailed records like receipts, bank statements, acknowledgment letters, and appraisals are essential for IRS compliance. 

Conclusion: Why Now Is the Time to Give Strategically 

The 2026 tax changes could limit the generosity of your deductions. But 2025 gives you a unique opportunity to maximize the impact of your giving, both for the causes you care about and for your personal tax situation. 

Don’t leave it to the last minute. Consult with a financial advisor or tax professional now to ensure your giving aligns with your broader financial goals. 

Questions? Schedule a consultation with our tax team 

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