Tax-Smart Giving for 2025

November 24, 2025

Tax-Smart Giving for 2025

New tax laws taking effect January 1, 2026 are expected to affect charitable giving. The Aim Higher Foundation does not provide tax or financial advice, but has been working with leaders in the philanthropic community to better understand the tax law changes and anticipate donors’ needs.

The following philanthropic strategies are being commonly shared with donors as tax-smart options to consider in consultation with your tax and financial advisors.

Consider Bunching

Depending on your situation, you may want to consider bunching multiple years' worth of gifts into 2025 in order to maximize your tax savings and your charitable impact.

This may be especially relevant for households who are aiming to surpass a deductible threshold or are expecting 2025 to be the last year they claim deductions for charitable giving.

Donor Advised Fund (DAF)

DAFs allow for front-loading several years worth of giving into one contribution as a tax-saving strategy. You can then distribute gifts on your own timeline.

Retirement Assets

Starting at age 70 ½, older donors may find that making a Qualified Charitable Distribution (QCD) from their Individual Retirement Account (IRA) may be a smart strategy to avoid being pushed into higher income tax brackets.

QCDs avoid being counted as taxable income and bypass the new floor and cap limitations on itemized deductions.

Stocks and Other Securities

Gifts of appreciated stock and other securities (owned for more than one year) may be an alternative to cash donations and can offer donors a two-fold tax savings: avoidance of capital gains tax and a tax deduction for the full fair market value of the stock at the time of the gift.

This can be a particularly attractive option when markets are strong and/or cash is limited.