As 2025 draws to a close, families considering philanthropic gifts should consider some techniques and strategies to take advantage of the current tax code before multiple changes come into effect in 2026. “This year offers a perfect window for philanthropists to act with both generosity and strategy,” says Don Evans, CEO of Crewe Foundation, a 501(c)(3) public charity dedicated to helping donors give more effectively. The “One Big Beautiful Bill” (OBBBA) tax legislation, set to take effect in 2026, will dramatically reshape charitable deductions. Here’s some of what’s coming in 2026:
- A 0.5% floor on deductions for itemizers — the first half-percent of AGI given to charity will no longer be deductible.
- A 35% cap on the value of deductions for those in the highest tax brackets.
- Limits on DAF eligibility for the new “universal” above-the-line charitable deduction for non-itemizers.
- Permanent adjustments to AGI percentage limits for cash and non-cash gifts.
In short: deductions will shrink, complexity will rise, and donors waiting until 2026 may lose some of today’s flexibility. “2025 is the last clean year before the new rules arrive,” notes Evans. A few strategies that consider the changes from OBBBA are utilizing various charitable giving vehicles, gifting non-cash assets, bunching charitable gifts, and making Qualified Charitable Contributions (QCD).
Charitable Giving Vehicles
Donor Advised Fund (DAF)
A Donor-Advised Fund is a charitable giving account established within a public charity, such as Crewe Foundation, that carries the donor’s appointed name and allows ongoing donor involvement and direction. Donors make an irrevocable contribution — cash, securities, or even complex assets — and receive an immediate income tax deduction and then recommend grants to qualified charities over time.
The structure combines flexibility and foresight. You can contribute larger amounts in one year (and capture the deductions) while distributing funds in future years when charitable interests arise or markets shift. Meanwhile, the assets in your DAF can grow tax-free, increasing your charitable capacity.
For busy professionals, entrepreneurs, and families, that means less paperwork, more impact, and total administrative support from Crewe Foundation — from setup and compliance to grant distribution and tax reporting.
Foundation or Supporting Organization
For families who want to take a more hands-on approach, or employ staff, a private foundation or supporting organization may be the right fit. Private Foundations offer maximum control. Families can design their own grant programs, support individuals or international projects, and manage endowments. However, these entities also come with additional responsibilities — annual 5% distribution requirements, public filings, and ongoing administrative oversight.
Private Operating Foundations strike a balance between foundation and nonprofit. They allow families to directly operate charitable activities (such as scholarship programs or community initiatives) while still enjoying the benefits of a foundation structure.
Supporting Organizations operate in affiliation with a public charity — such as Crewe Foundation — to advance shared missions. They provide many of the benefits of a foundation but with reduced administrative burdens and closer partnership with established charitable infrastructure. Supporting Organizations are essentially a hybrid between a DAF and a Private Foundation. In the right circumstances, they are the best option for families desiring a more active, hands-on approach.
“Some families want to roll up their sleeves, build charitable programs and create lasting legacies,” says Evans. “Others prefer to stay simple and strategic in their giving. The key is knowing there’s a structure that fits every kind of giver and every situation.”
Charitable Trusts
For donors who want to integrate charitable giving into their personal financial and estate planning, charitable trusts can provide both income and impact.
Charitable Remainder Trusts (CRTs) pay income to you or your loved ones for life (or a set term), with the remainder passing to charity. Donors receive an immediate charitable deduction and may defer or avoid capital gains on appreciated assets used to fund the trust. It’s an elegant way to secure lifetime income while leaving a lasting charitable legacy.
Charitable Lead Trusts (CLTs) flip the model. The trust makes annual payments to one or more charities for a specified period, after which the remaining assets pass to heirs. CLTs are often used by high-net-worth families to reduce estate and gift taxes while making an immediate impact on the causes they care about.
The Power of Non-Cash Gifts
Cash isn’t the only way to give. Checkbook philanthropy is the traditional method of gifting, but many donors achieve the greatest tax efficiency by gifting appreciated assets such as:
- Publicly traded stocks, bonds, or ETFs
- Restricted or closely held business interests, including S-corps and LLCs
- Real estate and partnership units
- Cryptocurrencies, Art, Collectibles, or other hard-to-value assets
Crewe Foundation specializes in accepting these illiquid or complex assets, handling the due diligence, transfer, sale, and charitable administration on behalf of the donor.
“We often help donors turn assets they thought were ‘locked’ due to capital gains tax — a piece of land, a business interest, even a private note — into funding for causes they love,” says Evans. “It’s philanthropy that unlocks potential value.” By donating appreciated assets directly, capital gains tax can be bypassed, and fair market value can be deducted (within IRS limits).
Example
Suppose an individual is the sole owner of ABC, LLC, a privately held business valued at $30 million with a cost basis of $0 from depreciation. If the owner were to sell the business now, the estimated taxes that would be due is $9 million (20% capital gains, plus state taxes, plus 3.8% surtax). If the individual had philanthropic desires and were to donate $3 million to a charity after receiving the proceeds from the sale, this would reduce the estimated taxes. Because this will be a cash donation to a public charity (DAF), the individual may deduct up to 60% of AGI, which is estimated to be $18 million. The donated amount is $3 million so the individual may deduct the entire amount. The deduction reduces the amount of taxable income for the former owner from $30 million to $27 million, thus reducing the estimated taxes due by $900,000 (30% tax multiplied by $3 million deduction). This might look like the following:
| Sale Price | $30,000,000.00 |
| Cost Basis | – |
| Taxable Gain | 30,000,000.00 |
| less Charitable Deduction | (3,000,000.00) |
| Adjusted Taxable Gain | 27,000,000.00 |
| est. Taxes Due | (8,100,000.00) |
| Net Proceeds | $18,900,000.00 |
If, instead of donating cash after the sale, the individual was to donate interest in the business prior to the sale, this would increase the total net proceeds to the individual. By donating $3 million of company stock prior to the sale, it would make the taxable gain $27 million. Because the individual may deduct up to 30% of AGI for a non-cash gift to a public charity (DAF), the maximum amount the individual could deduct is $8.1 million (30% of $27 million), which is still above the $3 million gift, allowing for a full deduction. Under these circumstances, the individuals’ net proceeds are estimated to be the following:
| Sale Price | $30,000,000.00 |
| less Charitable Gift | (3,000,000.00) |
| Cost Basis | – |
| Taxable Gain | 27,000,000.00 |
| less Charitable Deduction | (3,000,000.00) |
| est. Taxes Due | (7,200,000.00) |
| Net Proceeds | $19,800,000.00 |
| Increased Net Proceeds | $900,000.00 |
As demonstrated, by donating the appreciated asset prior to the sale rather than after, the increased amount of estimated net proceeds is $900,000. Also, the DAF was able to receive the same amount in the first example, while avoiding the estimated capital gains that otherwise would be paid.
Pre-Funding Philanthropy: A Year-End Bunching Strategy
Some tax-savvy donors are using “bunching” strategies — concentrating several years’ worth of charitable contributions into 2025. By doing so, they exceed the standard deduction threshold, optimize itemization, and create a reserve for future charitable grants.
Let’s expand on our previous example to illustrate this point. If the individual anticipates a desire to gift money not only now but in future years also, the individual could elect to donate $10 million rather than $3 million. Because the individual is making a non-cash donation to a public charity (DAF), and the estimated AGI is $30 million, the maximum deduction the individual may take this year is $9 million. The excess $1 million may be carried forward for up to 5 years to offset future income. By bunching our donations this year, the individual achieved the following benefits:
- The individual was able to deduct $9 million in the year of the donation from their AGI.
- There is an additional $1 million that may be used for up to 5 years to offset future income.
- After the sale, the DAF now has $10 million in cash that was not subject to capital gains (an estimated $3 million in tax savings at a 30% tax rate).
- The individual may invest the $10 million in the DAF to have the amount donated amplified.
- Funds can be granted over future years, according to whatever charitable plan the individual desires.
Qualified Charitable Contributions (QCD)
For those who are at least 70 ½ years old and are charitably inclined, a QCD is a great strategy that can satisfy the Required Minimum Distribution (RMD) as well as reduce overall taxes. By making a QCD, the donor distributes funds directly from their IRA to a qualified charity. There are multiple benefits to electing a QCD. A few of these are the following:
- Satisfying all or part of the RMD.
- Reducing taxable income.
- Lowering AGI, potentially reducing Social Security and Medicare Taxes.
- Allows up to $108,000 annually per person (2025).
Example
Assume an individual has a 2025 RMD of $200,000. This person also has other income of $250,000, which puts them in the 35% tax bracket. If this person were to withdraw the RMD directly from their IRA, the estimated federal taxes would be $70,000 ($200,000 multiplied by 35%). Here is how this might look:
| 2025 RMD | $200,000.00 |
| Estimated Federal Taxes | (70,000.00) |
| After-tax Proceeds | $130,000.00 |
Instead, let’s say the individual makes a $20,000 donation directly from their IRA to a charity. Here is what this might look like and how much may be saved in taxes:
| 2025 RMD | $200,000.00 |
| less QCD | (20,000.00) |
| Taxable Income | 180,000.00 |
| Estimated Federal Taxes | (63,000.00) |
| After-tax Proceeds | $117,000.00 |
| Savings from QCD | 7,000.00 |
| Savings from lower AGI | 7,000.00 |
| Total Savings | $14,000.00 |
A Final Word: Make 2025 Count
As the year closes, consider making 2025 the cornerstone of your giving legacy. The coming tax changes will narrow opportunities, but this year still offers the full suite of benefits: higher deduction potential, flexibility, and simplicity.
Whether contributing cash, appreciated stock, or more complex assets, a Crewe Foundation DAF, or other giving vehicle, can help turn generosity into lasting charitable impact.
Working with a Crewe Foundation specialist can help you decide which strategies may make sense for your charitable your giving. To meet with a specialist, explore year-end giving strategies, or open a DAF, visit crewefoundation.org.
Give wisely. Give now. Give with purpose.
