Major tax law changes are coming in 2026 that could significantly affect how much you can deduct for charitable contributions. If you're looking to maximize tax benefits while making a lasting impact, now is the time to act.
Here’s how you can prepare with smart charitable giving strategies before the rules change.
Starting January 1, 2026, several provisions from the 2017 Tax Cuts and Jobs Act are set to expire. This will likely result in:
These changes mean that taxpayers may lose out on valuable charitable giving deductions if they wait too long.
You can take advantage of current tax laws by using strategies that increase your deduction potential in 2025. These include:
Yes. Bunching deductions involves consolidating several years’ worth of charitable donations into a single tax year. This helps you exceed the itemized deduction threshold and maximize your tax savings.
A Donor Advised Fund allows you to make a large, tax-deductible contribution in 2025 while distributing the funds to charities over several years. This provides immediate tax benefits and long-term giving flexibility.
If you’re age 70½ or older, you can make Qualified Charitable Distributions of up to $105,000 directly from your IRA to a qualified charity. This satisfies your Required Minimum Distribution (RMD) without increasing your taxable income.
Donating appreciated assets like stocks or mutual funds is usually more tax-efficient than donating cash. You avoid capital gains taxes and can deduct the full fair market value of the assets.
If you have significant wealth or legacy planning goals, a charitable trust can offer fixed income or estate benefits while providing a current-year deduction. It's ideal for long-term philanthropic strategies.
Here are four errors that can reduce your tax benefits:
A family donated $400,000 in appreciated stock to a Donor Advised Fund in 2025.
This is a great example of how strategic planning can lead to meaningful tax savings and philanthropic impact.
Act now to take advantage of the more generous 2025 rules. The best way to ensure you're optimizing your charitable contributions is to work with a tax advisor or financial planner. They can help you decide which strategy is right for your goals and financial situation.
Talk to your advisor today, or schedule an introductory call to learn more about our tax consulting services.
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