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.
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:
These changes create a powerful incentive to act now, especially for those who itemize deductions or give large gifts.
The tax environment in 2025 remains relatively favorable to charitable donors:
Let’s walk through a few of the most effective giving strategies available this year.
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:
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:
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.
To ensure your charitable gifts are deductible, make sure you:
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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