Beyond "Giving Tuesday": Charitable Giving Strategies for Maximum Impact and Tax Benefits

The Changing Landscape of Charitable Giving and Why 2025 Is Critical

Recent tax legislation, including the "One Big Beautiful Bill" Act (OBBBA), introduces important changes that will reshape charitable giving starting in 2026. The most significant changes include a new 0.5% adjusted gross income (AGI) floor for itemized charitable deductions and a universal charitable deduction for non-itemizers of up to $1,000 for individuals and $2,000 for joint filers. 

What This Means for You: 

• If your AGI is $100,000, you'll need to donate more than $500 before any charitable contributions become deductible starting in 2026 
• Over 90% of taxpayers who don't itemize will gain new tax incentives for charitable giving beginning in 2026 
• A new 35% cap on itemized deductions may affect high-income donors 

Given these upcoming changes, 2025 presents a unique opportunity for high earners to accelerate charitable giving before tighter itemized deduction caps begin in 2026. This makes current planning especially valuable for maximizing your philanthropic impact. 

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Top Charitable Giving Strategies for Maximum Impact 

1. Bunching Contributions: Rather than making consistent annual donations, consider "bunching" multiple years' worth of charitable contributions into a single tax year to exceed the standard deduction threshold. For 2025, the standard deduction is $15,000 for single filers and $30,000 for married couples filing jointly. For example, instead of donating $10,000 annually, contribute $30,000 every three years. This allows you to itemize in high-giving years while taking the standard deduction in others.  

2. Donate Appreciated Assets, Not Cash: Donating appreciated stocks, real estate, or other assets held for more than one year offers two significant tax benefits: you eliminate capital gains taxes that would be owed if you sold the assets, and you can claim a charitable deduction for the full fair market value. This strategy can increase the amount available for charity by up to 20% compared to selling the asset and donating the proceeds. 

3. Leverage Donor-Advised Funds (DAFs): Donor-advised funds offer immediate tax deductions when you contribute, while allowing you to recommend grants to charities over time. You can contribute cash, stocks, real estate, and other assets, which have the potential to grow tax-free until distributed. DAFs are particularly powerful for bunching strategies, as they allow you to claim the deduction immediately while maintaining flexibility in your giving timeline.  

4. Qualified Charitable Distributions (QCDs): If you're 70 ½  or older, you can make qualified charitable distributions of up to $108,000 directly from your traditional IRA to qualified charities. This counts toward your required minimum distribution without generating taxable income. 

5. Tax-Loss Harvesting with Charitable Giving: For securities that have declined below their cost basis, you can sell at a loss and donate the cash proceeds. Use the loss to offset capital gains and up to $3,000 of ordinary income, while still claiming a charitable deduction. 

Advanced Strategies for High-Net-Worth Donors 

Charitable Remainder Trusts (CRTs): CRTs provide you with an income stream during your lifetime while supporting charity upon your death. You receive an immediate tax deduction and can make additional contributions over time. 

Charitable Lead Trusts (CLTs): These trusts provide income to charity for a specified period, with remaining assets eventually passing to your beneficiaries—often with reduced gift or estate tax implications. 

Year-End Planning Considerations 

 As we approach year-end, consider these immediate actions: review your giving capacity against the upcoming 0.5% AGI floor; accelerate planned giving to maximize 2025 tax benefits; harvest tax losses to offset gains from appreciated asset donations; and coordinate with retirement planning if you're eligible for QCDs. 

 Tax law changes create new complexities that require careful planning. At WHZ, our experienced financial planners can work with you to ensure your charitable giving strategy aligns with your broader financial goals. 

 But of course, effective charitable giving isn't just about tax benefits—it's about creating lasting impact for the causes you care about while optimizing your financial strategy. The key is planning ahead and understanding how different approaches can work together to maximize both your philanthropic goals and tax advantages. 

 While tax benefits may motivate your giving strategy, donors are ultimately inspired by results, relationships, and purpose. By implementing these strategies thoughtfully, you can ensure your charitable dollars work harder for the causes that matter most to you. 

 Ready to develop a charitable giving strategy that maximizes both impact and tax benefits? Contact us for a complimentary consultation at whzwealth.com or call (860) 928-2341. Let's create a plan that provides "Absolute Confidence. Unwavering Partnership. For Life." 

Authored by Holly C. Wanegar, CFP®, Vice President at WHZ Strategic Wealth Advisors. AI may have been used in the research and initial drafting of this piece. This article is for informational purposes only and should not be considered personalized tax or legal advice. Consult with qualified professionals regarding your specific situation.  

Generally, a donor-advised fund is a separately identified fund or account that is maintained and operated by a section 501(c)(3) organization, which is called a sponsoring organization. Each account is composed of contributions made by individual donors. Once the donor makes the contribution, the organization has legal control over it; however, the donor, or donor’s representative, retains advisory privileges with respect to the distribution of funds and the investment assets in the account. Donors take a tax deduction for all contributions at the time they are made, even though the money may not be dispersed to a charity until much later. 

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