Year-End Giving 2025

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CAROLINE HODKINSON:

At this time of year, many of us turn to philanthropy as a way to give back and reflect on what matters most. Today, we're going to talk about how to make the most of your giving, both in where to give and how to do it in a thoughtful, effective way. 2025 has brought another wave of challenges, from natural disasters to humanitarian crises, both here and around the world. We've seen donors step up to support food assistance, housing, and emergency medical care.

But the need continues to grow. Nonprofits are being stretched thin. They're experiencing rising demand for their services, higher operating costs, funding disruptions, while communities still need immediate and long-term support. That's why this year donors may notice more frequent asks or requests for larger gifts.

And it makes sense. Organizations are trying to meet the moment. At the same time, there are some bright spots. One example is enhanced technology that provides rapid access to nonprofit data, which can help families make more informed giving decisions.

Julie, you're in close touch with donors. What trends are you seeing?

JULIE PARDUE:

There are some really important things going on in the end of this year so that we can plan for the charitable landscape that's going to be happening in 2026. So I want to mention first that I always say, talk to your tax professional or your legal advisor because everybody's tax picture is different. They have unique situations. But there are two really important components that we want to think about at the end of this year to plan.

Deductions only apply for gifts over 0.5% of adjusted gross income. There's a new 35% cap on charitable deductions for top earners. So if you're thinking about a more sizable gift in this year, it sounds like it's worth doing some planning before the rules shift.

Bunching is a really popular strategy that we're seeing this year because you can take several years worth of giving and take advantage of the current deduction rules by putting it all together in this tax year. And if you couple that with using a donor-advised fund where you can make grants to organizations over the longer term, it's a really effective strategy, and we're looking at how best to fund this as well in a tax efficient way. And we often say, it's a great way to fund an account with using long-term appreciated assets because you can potentially avoid paying capital gains tax. So if you take a bunching strategy, a donor-advised fund, and you fund it with long-term appreciated stock, it can be a really powerful tool under the right circumstances.

CAROLINE HODKINSON:

What about qualified charitable distributions? Should donors still be thinking about that?

JULIE PARDUE:

Yeah, absolutely. Inside of the IRA, if you have a QCD, meaning you're 70.5 and older, you can make a charitable distribution directly to the charity. And that can be really tax advantageous, especially if you do not itemize your deductions.

CAROLINE HODKINSON:

Thanks so much, Julie. These are all really great year-end planning tips. However you choose to give, we hope this season brings meaningful ways to support the causes that matter most to you and your family.

JULIE PARDUE:

And on behalf of all of us here at Bessemer, we wish you and your family a happy and joyous holiday season.

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