As we approach the end of the year, now is the perfect time to maximize the impact of your charitable contributions—both for the causes you care about and for your tax planning.
Here are some smart strategies to consider:
- Open or Add to a Donor-Advised Fund (DAF)
A gift to a DAF before December 31 provides an immediate tax deduction while giving you flexibility to recommend grants to charities in the future.
- Bundle Your Gifts for Greater Tax Benefits
By “bunching” two or more years’ worth of charitable donations into one tax year, you may exceed the standard deduction and itemize for a bigger benefit. A DAF can help you store these gifts until you’re ready to distribute them.
- Give Directly from Your IRA
If you’re age 70½ or older, consider making a Qualified Charitable Distribution (QCD) from your IRA. This reduces your taxable income—even if you don’t itemize.
- Donate Appreciated Stock
Gifting securities held for more than one year can eliminate capital gains tax and allow you to deduct the fair market value of the gift. Please make all gifts by Wednesday, December 24 to ensure they are applied to your 2025 tax filing.
What’s New Under the 2026 Tax Law?
Starting next year, recent legislation introduces two key changes:
- Above-the-Line Deduction for Non-Itemizer
Taxpayers who take the standard deduction can now deduct up to $1,000 (single) or $2,000 (married filing jointly) for cash contributions to qualified public charities—lowering your adjusted gross income.
- Charitable Deduction Floor for Itemizers
Itemizers may only deduct contributions that exceed 0.5% of AGI, and the tax benefit is capped at 35%, impacting those in higher brackets.
Please make sure that any online donations or checks to Jewish Peninsula are received by December 31.
Every act of generosity strengthens our community and touches lives in ways that matter most. Thank you for being a source of hope and kindness.
If you have any questions, please contact Jessi Malkin.
Jewish Peninsula and the UJCVP Endowment do not provide tax, legal, or financial advice. Please consult your professional advisors to understand how these changes apply to your situation.