2025 Bigger & Better Giving - The Detailed Version

2025 is shaping up to be a big year for charitable giving. Thanks to new tax rules, donors can maximize impact while protecting valuable tax benefits. Let's explore the methods.

Give Appreciated Assets Instead of Selling

When you give appreciated assets (stocks, real estate, etc.), you avoid reporting capital gains income altogether. That means:

No capital gains tax for you. No tax for the nonprofit when they sell. Full charitable deduction if you itemize.

Even if you don’t itemize, keeping your reported income low matters more than ever. It helps protect new 2025 tax benefits like the senior “bonus deduction” and the higher $40,000 State and Local Tax deduction.

Important: Don’t sell first and then give. This will guarantee the tax bill lands on you. Always give before the sale. If your nonprofit can’t accept assets directly, a donor-advised fund can help.

Hypothetical: Jane's $50,000 Stock Gift

Jane wants to give $50,000 to her favorite nonprofit. If she sold her stock first, she would owe $10,000 in capital gains tax (assuming 20%). That means her nonprofit would only receive $40,000, and Jane’s taxable income would rise by $50,000.

Instead, Jane donates the stock directly. The nonprofit receives the full $50,000, Jane pays no capital gains tax, and she still qualifies for the full $50,000 charitable deduction if she itemizes. Plus, by keeping her reported income lower, she qualifies for the new senior bonus deduction and higher SALT deduction.

Try the “Charitable Swap”

Want to give but keep your portfolio the same? Here’s how:

Donate appreciated stock instead of cash.
Use your cash to buy back the same stock.

The beautiful upshot: Your portfolio doesn’t change, but the built-in gain disappears. No waiting period applies because this isn’t a “wash sale.”

IRA Gifts: A Hidden Advantage

For donors age 70½ and older, direct gifts from an IRA or IRA rollover are one of the smartest giving tools available. Why? Because these gifts never count as income.

Forget about a tax deduction. Keeping your Adjusted Gross Income (AGI) lower protects valuable benefits:

The new $6,000 senior bonus deduction (phases out as income rises).
The higher State and Local Tax deduction (up to $40,000 in 2025, with income limits).
Lower Medicare premiums, reduced tax on Social Security, and improved eligibility for medical deductions.

Anyone age 70½+ can give up to $108,000 per year this way. For those 73+, IRA gifts also reduce Required Minimum Distributions (RMDs).

Tip: To make direct charitable gifts from a 401(k) or 403(b), convert to an IRA rollover first...ideally before age 73 to avoid complications with RMDs.

The Bottom Line

Appreciated assets and IRA gifts are more powerful than ever. They let you:

Avoid unnecessary taxes.
Keep your income lower.
Unlock new 2025 tax benefits.
Support the causes you care about most.

If you’re targeting 2025 as a big giving year, these strategies can help you do it wisely.

At JB Consulting, I help nonprofits and donors alike structure smarter giving strategies that maximize impact while protecting valuable tax benefits. If you’d like to explore how these approaches could work for you or your organization, let’s talk.