Six tips for your year-end game plan
Written by:
Clark Collier, CAP(R), Director of Giving Strategies
With only a few months left in 2025, it is important to evaluate your philanthropy sooner rather than later. New tax laws may throw a curveball into the financial planning strategies you’ve set in motion with your advisors.
Here are six tips to help you and your attorney, CPA, and financial advisor evaluate whether adjustments to your charitable plan might be in order. Of course, the team at the CICF Collaborative (which includes Central Indiana Community Foundation, Hamilton County Community Foundation, IMPACT Central Indiana, the Indianapolis Foundation, and Women’s Fund of Central Indiana) are available to join your meetings with advisors to help support any charitable giving conversations.
Check out the new estate tax exemption.
The One Big Beautiful Bill Act (OBBBA) extended or “made permanent” many favorable tax provisions, notably the elevated estate tax exemption. In technical terms, under the new law, the 2025 estate tax exemption is $13.99 million for single filers and $27.98 million married filing jointly. In 2026, these numbers increase to $15 million and $30 million respectively. You may recall that the higher exemption was originally scheduled to sunset at the end of this year, which would have caused a lot more estates to be subject to tax. This, in turn, prompted many people to lean on charitable gifts in their wills and trusts to blunt the impact of estate taxes.
Keep planning!
If you are a high net worth individual, even though the estate tax exemption is staying high, this is still a good time to review or refresh your tax and financial strategy. Although no one knows what future tax legislation might look like, we all know that there will be tax legislation in the future. Today’s tax advantages may not be tomorrow’s tax advantages. Continue to talk with the community foundation and your advisors about your charitable giving plans so you are ready to make adjustments when the laws change again.
Consider not making a change.
It’s important to remember that, at least in our experience, financial motivations are not the main reason people support charities. So, if you were among the people who adjusted estate plans in anticipation of the lower estate tax exemption, consider retaining the larger bequest to your fund within the CICF Collaborative or other charities. You’ll be doing a lot of good!
2025 is important if you itemize deductions on your income tax return.
If you itemize deductions on your income tax return, 2025 presents a window of opportunity! This is because the OBBBA increases the standard deduction in 2025. This is also because your itemized charitable deductions will be subject to a “floor” and cap starting in 2026. A technique called “bunching” allows you to make big contributions to your donor-advised fund in 2025 so that you can benefit from itemizing your deductions. In turn, over the coming years, you can then use your donor-advised fund to support your favorite charities.
Stick to the basics.
Sure, a lot is changing, but a lot isn’t! Appreciated stock is still likely to be a much more tax-savvy gift to charity than cash, and it’s important to keep this top of mind. In addition, IRAs remain a powerful charitable planning tool. For instance, when you name a fund within the CICF Collaborative as the beneficiary of an IRA, the gift avoids estate tax and income tax, both of which can hit your heirs hard.
Know the opportunities if you are 70 ½ or older.
If you are 70 ½ or older, the Qualified Charitable Distribution (“QCD”) is a great way to transfer up to $108,000 (2025’s per taxpayer limit) income-tax free to a qualified charity, including some types of funds within the CICF Collaborative. Unfortunately, this excludes your donor-advised fund, but we are happy to help strategize alternative ways to maximize your impact.
If you have any questions, don’t hesitate to reach out. We’re honored to be your first call on all things charitable giving!
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.