Three tips for year-end: Advising your philanthropic clients

As you guide your charitably inclined clients through year-end planning, the Community Foundation for Northern Virginia 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 themes to keep top of mind:

Take a look at “bunching”

We encourage you to revisit “bunching” strategies with clients who itemize. By front-loading multiple years of giving—especially through contributions to a donor-advised fund at the Community Foundation—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 clients 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 the Community Foundation.
• For clients aged 70½ and older, Qualified Charitable Distributions from IRAs continue to be a powerful tool for clients to give to Designated Funds and Field of Interest 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 of the essence

Time is ticking away for 2025! If your clients 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 the 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 your clients in all of their charitable giving activities! 

 

To learn more about partnering with the Community Foundation in year-end giving, This email address is being protected from spambots. You need JavaScript enabled to view it..