As 2026 approaches, new federal tax laws will change how charitable giving is treated. Here are some things to consider before December 31, 2025 to maximize your financial and philanthropic impact.
Give in 2025 to Lock in Current Tax Benefits
Starting January 1, 2026, for taxpayers who itemize deductions, only charitable contributions that exceed 0.5% of adjusted gross income (AGI) will be deductible. High-income earners in the top bracket will be limited to 35% of AGI instead of the current 37%.
Key Take-Away: Giving by December 31 ensures you receive the full benefit under the 2025 rules.
Gift Appreciated Assets to Avoid Capital Gains
Gifting long-term appreciated assets—such as stocks, bonds, or mutual funds held for over a year—directly to Ivymount can provide benefits.
Key Take-Away: Eliminates capital gains tax and typically allows you to deduct the asset’s full fair market value.
Consider a Donor-Advised Fund (DAF)
If you want to “bunch” several years of giving into 2025 but distribute grants over time, a DAF can provide an immediate deduction this year while giving you flexibility for future gifts.
Key Take-Away: Bunching will allow more of your donations to exceed the new 0.5% (AGI) floor and qualify for a deduction.
Reduce Taxable Income with QCDs
If you are 70½ or older, through Qualified Charitable Distributions (QCDs), you can donate up to $108,000 directly from your IRA to Ivymount.
Key Take-Away: This satisfies required minimum distributions and keeps the amount out of your taxable income.
Time Gifts for Non-Itemizers
In 2026, donors who take the standard deduction will be able to deduct up to $1,000 (individual) or $2,000 (joint) in cash donations directly to public 501(c)(3) charities.
Key Take-Away: If you typically take the standard deduction, you may want to time regular gifts in early 2026 to qualify for the new above-the-line deduction.
Act Now to Get Ahead of Tax Changes
To sum it all up, making a gift by December 31, 2025 could offer a higher tax benefit. It’s a good idea to speak with your tax advisor or to consult multiple resources especially if you’re itemizing, using appreciated assets, considering bunching through a DAF, or taking a QCD.
Disclaimer: This information is for general education and not tax advice. For personalized guidance, consider consulting a tax professional.
