End of Year Giving

Gifts made before the end of December 2025, may deliver a greater tax benefit than those made in 2026 and beyond. 

• The maximum value of itemized deductions will be capped in 2026 at 35%.   (Currently at 37%)
• Additionally, a new AGI (adjusted gross income) floor will be instituted in 2026 essentially decreasing the tax benefit of giving to charities in 2026.

Takeaway – accelerating pledge payments or bunching giving into the end of 2025 may make sense for donors.

With the stock market at near all-time highs, many donors are taking advantage of the opportunity to donate stock and other securities to the campaign and take full advantage of the tax benefit of such gifts.

Donating securities like stock or bonds, avoids capital gains taxes on the appreciation. 

"Donating appreciated stock has been a smart and rewarding way for us to support St. Margarets. Instead of selling the stock and paying capital gains tax, we donated the appreciated shares. St. Margarets received the full market value of the stock, and we were able to claim a charitable deduction for the same full market value, while avoiding capital gains tax. It has been a win-win situation using this highly tax-efficient way to support the school."

Giving directly from IRAs and other tax deferred accounts also have important tax savings for donors in higher age brackets.  This could be you or other members of your family.

QCDs (qualified charitable distributions) allows a donor to donate directly from an IRA to a qualified charity without paying income tax on the distribution of these pre-tax assets.  Donors must be 70 /1/2 or older.