Last Call for Tax Planning!

We’ve talked a lot about the advantages of “bunching” charitable giving in 2025 before stricter limits kick in for 2026. But the OBBBA did not change the rules for Qualified Charitable Distributions, which continue to allow individuals aged 70½ or older to transfer up to $108,000 in 2025 directly from an IRA, bypassing taxable income and counting toward required minimum distributions (if applicable). Certain types of funds at The Community Foundation, such as designated funds and field-of-interest funds (but not donor-advised funds), may receive QCDs. These can be donor directed at inception to support the nonprofits or issue areas your client selects.

Because a QCD reduces adjusted gross income rather than functioning as an itemized deduction, it will remain unaffected by the OBBBA’s new 0.5% AGI floor and the 35% cap that will apply to itemized charitable deductions starting in 2026. As a result, QCDs may become even more valuable next year, offering a tax-efficient charitable giving option at a time when traditional deductions will be more limited for some of your clients.  

Our team at The Community Foundation is here to support you as you help clients navigate these shifting rules. We are happy to serve as a resource for evaluating giving strategies, structuring multi-year plans, and helping clients make the most of their 2025 contributions. We are honored to collaborate with you in serving your charitably minded clients to achieve year-end giving goals and beyond.