Alternatives to traditional charitable giving 

You may have seen headlines about looming changes to tax law. Some have called it the “sunset tax” even “taxmageddon.” 

The matter is straightforward: beginning in 2026 many of the tax reductions and other changes brought by the Tax Cuts and Jobs Act of 2017 will expire. This means that the amount of the standard deduction will be cut in half, income tax rates will increase, tax brackets will change, and the amount of your estate that can pass tax free will be reduced.

While Congress may step in before the end of 2025, if nothing is done the changes will take effect as scheduled. In light of this uncertainty, here are some considerations for your charitable giving:

Accelerate Charitable Gifts – Giving before the end of 2025, especially a gift of income producing assets, would eliminate income that could be taxed at higher rates in 2026.

Qualified Charitable Distributions – If you are over age 70½, a qualified charitable distribution (QCD) from your individual retirement account (IRA) avoids the income tax you would otherwise pay on a withdrawal. In addition, if you are subject to required minimum distributions (RMD), your QCD contribution will reduce your RMD amount with no income tax.

Estate Tax Planning – Now is the time to plan for the possibility that your estate may become taxable in the beginning of 2026, when the value of an estate that can pass tax-free is scheduled to be cut in half. An estate gift to the people and causes you care about most can reduce your estate taxes and allow you to control where your money goes.

Will Congress act before the end of 2025? Perhaps, but exactly how tax laws might be affected is unknown. Whatever the future may bring, we stand ready to collaborate with you and your advisors to ensure your philanthropic endeavors make the most tax sense for you.