3 Tips for Philanthropic Individuals, Families and Corporations

As you think of year-end planning, whether with your advisor or on your own, Hudson Community Foundation is happy to help you navigate the unusually time-sensitive opportunities available in 2025.

With major charitable deduction changes taking effect in 2026 under the OBBBA, this year presents a critical window for optimizing both tax strategy and philanthropic impact.

Here are three tax saving considerations to keep in mind:

 Think about “bunching”

We encourage you to revisit “bunching” strategies for those who itemize. By front-loading multiple years of giving especially through contributions to a donor-advised fund at Hudson Community Foundation (HCF) clients may exceed the standard deduction in 2025 and lock in the full value of itemized charitable deductions before next year’s 0.5% AGI floor and 35% cap take effect. A donor-advised fund can also serve as a practical vehicle for donors who wish to make a large gift in 2025 while distributing grants thoughtfully over time.

 Appreciated stock, QCDs, and IRA beneficiary designations: Tried and true ways to give

Don’t forget the “Big 3”:

• Appreciated securities remain one of the most tax-efficient assets for charitable planning. Clients can eliminate capital gains tax on long-term appreciated assets by contributing them to a fund at HCF.
• For individuals aged 70½ and older, Qualified Charitable Distributions from IRAs continue to be a powerful tool for you to give to certain types of funds at HCF (not including donor-advised funds). Available in 2025 up to $108,000 per taxpayer, QCDs reduce adjusted gross income instead of relying on itemization and therefore may become even more advantageous when the new limits take effect.
• Year-end is a good time for clients to revisit beneficiary designations on IRAs and other retirement plans, particularly given the heavy income-tax burden these assets carry when left to heirs.

Time is ticking away for 2025!

If you are considering more complex gifts such as real estate, privately held business interests, or closely held stock, act now, or consider getting the ball rolling for 2026. These transactions require additional time and coordination, and Hudson Community Foundation is ready to collaborate with you to ensure proper execution and compliance. 

Please reach out to us as you structure year-end strategies and look ahead to next year. We value the opportunity to support you and/or your clients in all of their charitable giving activities! 

The team at the HCF looks forward to working with you and your clients to establish (or update) bequests to fulfill your clients’ charitable legacies. Give us a call! 

Read more about Donors Guide to Donor Advised Funds.

With a fund at Hudson Community Foundation (HCF), advisors can manage the charitable assets on their preferred platform at any amount. Assets stay under your management. You can provide your clients with the consistent investment advice they expect. We are your partner in charitable giving!

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The team at HCF is a resource as you serve your philanthropic clients. We understand the charitable side and are happy to serve as a secondary source as you manage the primary relationship with your clients. This blog is provided for informational purposes only. It is not intended as legal, accounting, or financial planning advice.