As 2025 winds down, now is the ideal time to revisit personal charitable giving strategy. Legislative changes and shifting tax thresholds can affect how to give and how far dollars go to make a difference.
“The close of the calendar year is when charitable and financial planning intersect,” says Randy Parrish, Tidewater Jewish Foundation’s vice president and chief financial officer. “A few well-timed adjustments can help donors maximize tax efficiency while supporting the causes they care about most.”
1. Review estate plans under the new tax law.
The One Big Beautiful Bill Act (OBBBA) extended the elevated estate tax exemption, $13.99 million for single filers and $27.98 million for couples in 2025, rising to $15 million and $30 million in 2026. Parrish advises reviewing estate plans regularly: “Even favorable exemptions can change. Donors should confirm that charitable designations in their wills and trusts still reflect their intentions.”
2. Keep planning ahead.
Tax law is rarely static. “What works today may not work five years from now,” Parrish says. “Regular check-ins with your advisors, and with TJF, help ensure your strategy remains optimized.”
3. Stay the course.
Donors who have increased charitable gifts expecting a lower exemption might consider maintaining that generosity. Financial incentives may fluctuate, but impact endures. “Charitable giving shouldn’t be reactionary, it’s part of a long-term plan,” Parrish adds.
4. Take advantage of 2025 if itemizing deductions.
With higher standard deductions and new limits coming in 2026, donors who itemize can benefit from “bunching,” making larger gifts to a TJF Donor Advised Fund this year. This approach secures a current deduction while allowing future flexibility in charitable distributions.
5. Use appreciated assets and IRAs wisely.
Donating appreciated stock remains one of the most tax-savvy moves, helping avoid capital gains. Naming a TJF fund as an IRA beneficiary can also reduce both estate and income taxes.
6. Consider Qualified Charitable Distributions (QCDs).
For those age 70½ or older, QCDs allow up to $108,000 per taxpayer to be transferred directly from an IRA to a qualified charity, including certain TJF funds, without triggering income tax.
“At the end of the day, philanthropy is one of the few investments that yields both immediate and lasting returns,” Parrish says.
For guidance on year-end giving, visit www.foundation.jewishva.org, or contact Randy Parrish at rparrish@tjfva.org or 757-965-6111.