As 2025 draws to a close, now is the time to review your charitable giving strategy with your advisors. Recent tax law changes may affect the plans you’ve already put in place. To help you prepare, here are six key tips to consider with your attorney, CPA, and financial advisor. And remember, the team at the Crawford Heritage Community Foundation is always ready to join the conversation to ensure your giving makes the greatest impact.
- Review the new estate tax exemption.
The One Big Beautiful Bill Act (OBBBA) extended many favorable tax provisions, most notably the elevated estate tax exemption. For 2025, the exemption is $13.99 million for individuals and $27.98 million for married couples. These limits rise to $15 million and $30 million in 2026. Without this legislation, the exemption would have dropped sharply, subjecting many more estates to tax and prompting heavier reliance on charitable bequests.
- Keep your planning momentum.
Even with the high exemption levels, this is not the time to get comfortable. Future tax laws are always subject to change. Work with your advisors and the community foundation to stay flexible and ensure your charitable plans are ready to adapt.
- Consider keeping your charitable commitments.
Taxes aren’t the only reason people give. If you updated your estate plans in anticipation of a lower exemption, think about keeping those charitable provisions in place. Your generosity will continue to create lasting benefits in the community.
- Take advantage of 2025 if you itemize.
The OBBBA raises the standard deduction beginning in 2025, while also introducing a floor and cap on itemized charitable deductions starting in 2026. If you itemize, this year is an opportunity to “bunch” contributions, such as by making a large gift to a donor-advised fund at the community foundation. This allows you to maximize deductions now while giving you flexibility to support your favorite causes in the years ahead.
- Stick with proven strategies.
Some fundamentals remain the same. Gifts of appreciated stock are still generally more tax-efficient than cash. Naming a fund at the community foundation as the beneficiary of your IRA is also powerful, helping you avoid estate and income taxes that can otherwise erode what your heirs receive.
- Explore opportunities if you’re 70½ or older.
The Qualified Charitable Distribution (QCD) continues to be a valuable option. In 2025, you can transfer up to $108,000 per taxpayer directly from an IRA to a qualified charity, including certain funds at the Community Foundation, without paying income tax.
Next steps
Year-end is an ideal time to align your charitable goals with your financial planning. You can reach out to our executive director, Christian Maher, if you ever want to speak about how the community foundation can assist your charitable needs. We have worked with numerous generous people to plan millions of dollars in charitable gifts. Integrity is a paramount value in our work. We would be honored to be your first call for charitable giving guidance.
Christian Maher, Executive Director
executive@crawfordheritage.org
814-336-5206