This year presents a unique and fleeting planning window for your charitably inclined clients. The One Big, Beautiful, Bill alters the value of charitable deductions beginning in 2026, making this year especially advantageous for strategic giving. Here are 10 planning opportunities to discuss with clients, with Kalamazoo Community Foundation (KZCF) ready to assist in implementation!
- Accelerate charitable deductions into 2025
Beginning in 2026, charitable deductions under 0.5% of AGI will be lost, and top-bracket taxpayers will only deduct at 35% rather than 37%. For clients with flexibility, consider shifting future giving into 2025.
- Target 2025 as a “bunching” year
By consolidating multiple years of giving into 2025, clients can maximize deductions while still taking the standard deduction in future years. Donor Advised Funds (DAFs) at KZCF are an excellent tool to bunch gifts now and grant later.
- Leverage appreciated assets
Gifting appreciated stock, real estate or closely held business interests avoids capital gains tax and creates an income tax deduction. KZCF accepts complex gifts directly or via client-advised DAFs.
- Use the charitable “swap”
Encourage clients to gift appreciated securities and repurchase the same holdings with cash. This resets the basis without altering the portfolio and removes embedded gain.
- Recommend qualified charitable distributions from IRAs
For clients aged 70 ½ and over, direct IRA gifts to KZCF or a KZCF fund keep AGI lower, protecting deductions and minimizing Medicare surcharges.
- Start before the required minimum distribution age
Even though required minimum distributions (RMDs) don’t begin until age 73, qualified charitable distributions (QCDs) can start at 70 ½. This is often overlooked but highly valuable, especially for clients who don’t need all their IRA withdrawals.
- Combine IRA giving with lifetime income
Clients can make a one-time IRA transfer (up to $54,000) to fund a charitable gift annuity (CGA), receiving both RMD credit and guaranteed lifetime payments. KZCF issues CGAs and handles administration.
- Designate retirement assets as charitable beneficiaries
Leaving IRAs, 401(k)s, or 403(b)s to KZCF (to create a permanent fund or support nonprofits) avoids the income tax that heirs would otherwise pay. Simple beneficiary designations can make a major difference.
- Consider gifts of inheritance rights or life estate deeds
Clients can deed remainder interests in property (such as a residence or farmland) to KZCF. They retain lifetime use while generating an immediate charitable deduction.
- Pair Roth conversions with charitable planning
If a client is considering a Roth conversion in 2025, offset the income spike with a large charitable deduction through a DAF contribution, CGA or charitable remainder trust. This strategy loses effectiveness under the 2026 rules.
Why partner with KZCF?
- We have the local expertise you need: We have long-standing relationships with local nonprofits, knowledge about the issues affecting our community the most and insight into the opportunities that exist for support.
- We can accept complex gifts: These gifts can include real estate, privately held stock and retirement assets.
- We offer flexible giving solutions: These solutions include DAFs, CGAs, CRTs, Designated Funds and more.
- We provide permanent stewardship: KZCF ensures that our donors can trust that the intent behind their gifts is honored forever.
Edited from text by Russell James, J.D., Ph.D., CFP, Professor of Charitable Financial Planning at Texas Tech University, Sept. 9, 2025. Used with permission.
For illustrations, customized examples or fund agreements, contact Ken Greschak, estate & planned gift advisor, at .
EIN: 38-3333202.
