Tax laws passed earlier this year prevented tax increases for most taxpayers and extended, expanded and modified incentives to encourage charitable gifts. For 2025, those who enjoy supporting charities have until Dec. 31 to complete charitable gifts that fit their circumstances, whether they itemize deductions or not.
Many will make gifts of cash, which are popular and convenient; others may choose to make gifts of appreciated stock or make a tax-free QCD from their individual retirement account. In recent years, savvy donors have “bunched” gifts to benefit from itemizing in some years. Making larger charitable gifts in one year or using a donor advised fund can be helpful with this strategy. Certain adjustments to itemized deductions beginning in 2026 may make this a great year to bunch your deductions to exceed the standard deduction amount when you file your taxes next April.
Next year, a new above-the-line charitable deduction will be available for most taxpayers of $1,000 -$2,000, depending upon their filing status. As you consider gifts this year-end and next, carefully consider how to make the most of your generosity while helping to make the community and world a better place.
Special Planning Note
An expanded state and local tax deduction of up to $40,000 will mean that many more taxpayers will benefit from itemizing deductions, including their charitable deductions. Be sure to evaluate whether this change will benefit you by lowering your income tax bill!
A special acknowledgement
Thank you for being a generous supporter of the Boys and Girls Clubs of East County Foundation— your contributions are positively impacting those we serve.
Contact Us
If you have already included us in your plans, please consider letting us know so we can thank and acknowledge you! Our Executive Director, Forrest Higgins, can be reached at 619-440-1600 or forrest@bgcec.org if you would like more information about leaving the BGCEC Foundation in your estate plans. Thank you!