Plan with Purpose Before Tax Laws Shift
As we enter this season of gratitude, we're mindful of God's blessings and the opportunities He gives us to use them for His glory. This is also a wise moment to look ahead, because tax laws are changing again soon.
Several provisions affecting charitable giving are scheduled to shift between 2025 and 2026. Understanding these changes can help you make the most of your generosity and ensure your gifts continue to make an eternal impact.
5 Key Highlights to Keep in Mind
- Preserve full deductibility
Beginning in 2026, charitable deductions for higher income brackets will be reduced, and smaller deductions may be limited. Accelerating your giving into 2025 allows you to take advantage of today's more favorable deduction rules.
- Give appreciated assets instead of cash
Donating stocks, mutual funds, or real estate helps avoid capital gains tax while keeping your income lower. This can help protect benefits like the new senior bonus deduction.
Tip: You can also use a "charitable swap" by giving appreciated stock directly to ministry, then using the cash you would have donated to repurchase shares or diversify your investments.
- Leverage IRA giving
If you're 70 ½ or older, you can give up to $108,000 from your IRA this year through a Qualified Charitable Distribution (QCD). This type of gift does not increase your taxable income and can help satisfy your Required Minimum Distribution (RMD) if you are 73 or older.
- Turn IRA gifts into income
New rules allow a one-time transfer of up to $54,000 per person to fund a Charitable Gift Annuity (CGA) directly from your IRA, creating lifetime income for you and supporting the ministry you love.
- Consider adding to or opening a Donor-Advised Fund (DAF)
Making a DAF contribution in 2025 allows you to lock in higher deduction value before the 2026 tax law changes take effect.
How You Can Prepare
- Review your 2025 giving plan with your tax or financial advisor to decide if it makes sense to complete certain gifts before December 31, 2025
- Consider non-cash gifts like appreciated stock, IRA QCDs, or donor-advised fund (DAF) grants that can reduce taxes while supporting ministries you love
- Explore legacy gifts in your will or trust to create a lasting impact for God's Kingdom
Do You Have Questions?
The CBN Planned Giving team is here to help you explore year-end giving options that honors God and blesses His Kingdom before December 31, 2025.
Call: 800-333-2373
Email: plannedgiving@cbn.org
Explore other unique ways to give at cbnlegacy.org.
