Advising Your Philanthropic Clients: Three Tips For Year-End

Written by Clark Collier, CAP, Director of Giving Strategies

The team at the CICF Collaborative is happy to help you navigate uniquely time-sensitive opportunities available in 2025. With major charitable deduction changes taking effect in 2026 under the OBBBA, this year presents a critical window for optimizing both tax strategy and philanthropic impact.

Here are three big takeaways to pass along to clients:

  1. Take a look at “bunching”

By front-loading (bunching) multiple years of giving—especially through contributions to a donor-advised fund at the CICF Collaborative—clients may exceed the standard deduction in 2025 and lock in the full value of itemized charitable deductions before next year’s 0.5% AGI floor and 35% cap take effect. A donor-advised fund can also serve as a practical vehicle for clients who wish to make a large gift in 2025 while distributing grants thoughtfully over time.

  1. Appreciated stock, QCDs, and IRA beneficiary designations: Tried and true ways to give

Appreciated securities remain one of the most tax-efficient assets for charitable planning. Clients can eliminate capital gains tax on long-term appreciated assets by contributing them to a fund.

For clients aged 70½ and older, Qualified Charitable Distributions from IRAs continue to be a powerful tool for clients to give directly to nonprofits and to certain types of funds at the community foundation (not including donor-advised funds). Available in 2025 up to $108,000 per taxpayer, QCDs reduce adjusted gross income instead of relying on itemization and therefore may become even more advantageous when the new limits take effect.

Year-end is a good time for clients to revisit beneficiary designations on IRAs and other retirement plans, particularly given the heavy income-tax burden (WSJ subscription required) these assets carry when left to heirs.

  1. Time is of the essence

If your clients are considering more complex gifts such as real estate, privately held business interests, or closely held stock, act now, or consider getting the ball rolling for 2026. These transactions require time and coordination; the CICF Collaborative is ready to help you ensure proper execution and compliance.

Please reach out to us as you structure year-end strategies and look ahead to next year. We value the opportunity to support you and your clients!

 

About the CICF Collaborative

CICF Collaborative is a partnership of philanthropic organizations working together to strengthen communities across the region. Each entity within the CICF Collaborative (including the cornerstone entities, Central Indiana Community Foundation, Hamilton County Community Foundation, IMPACT Central Indiana, the Indianapolis Foundation, and Women’s Fund of Central Indiana) brings deep knowledge, strong relationships, and its own individual, focused mission. The CICF Collaborative unites the entities by providing shared services, allowing the entities to operate more efficiently and effectively. By leveraging what we each do best, we’re able to better serve our communities and create more lasting impact, together. Learn more »

About the Author

Clark Collier is CICF’s director of giving strategies, working with individuals, families, and their advisors to structure meaningful and impactful philanthropy. As a Chartered Advisor in Philanthropy (R), Clark provides gift planning support and counsel to the CICF Collaborative and nonprofit organizations throughout the region. He previously served as a philanthropic advisor for CICF and in development roles for both local and global organizations.