Some Smart Philanthropic Plans to Make before the End of 2025

The following is a reprint of the JCF's Money Matters column, published in the November 26, 2025 issue of the Jewish Community Voice, titled, "Some smart philanthropic plans to make before the end of 2025":

While the Jewish Community Foundation, Inc. (JCF) and the Jewish Federation of Southern New Jersey (JFSNJ) do not provide financial, legal, or tax advice, we encourage you to discuss the following options with your trusted advisor to maximize your donations and reduce your tax payments:

1. If you give charitably on a regular basis (thank you!), then a donor advised fund (DAF) with the JCF can be a tremendous asset. With a DAF, you contribute money to your fund, gain immediate tax benefits for 2025, and then you can recommend grants to charitable causes at any future time. This can be advantageous in many situations, but in particular if you choose to “bunch” your giving for multiple years into one year in order to overcome the standard deduction hurdle.

2. If you want to earn one of the best tax benefits from charitable giving, donate appreciated assets (such as stocks) instead of donating cash. By gifting appreciated assets directly to the nonprofit instead of selling them and then donating, you will avoid capital gains taxes that you would have otherwise faced if you sold them. You also can deduct the full fair market value up to 30% of your adjusted gross income (AGI).

3. If you are 70 1/2 years young or up, a qualified charitable distribution (QCD) of up to $108,000 from your IRA can be very tax efficient. By doing so, the QCD is excluded from taxable income since it goes directly to the nonprofit or synagogue you choose to support. In addition, if you’re over 73, the QCD counts toward your required minimum distribution (RMD), without increasing your tax liability. If interested, a QCD can be used to grow an endowment fund with the JCF to benefit future generations (but, due to IRS regulations, the QCD cannot be used to contribute to a DAF.)

4. If you aim to exceed the standard deduction for your tax return, consider “bunching” your future years’ gifts into 2025; then, by itemizing your deductions and exceeding the $40,000 standard deduction threshold (for most married taxpayers filing jointly), you can claim a larger deduction for 2025. Plus, by contributing your bunched donations into a DAF (see #1 above), you can recommend grants from the fund when ready to give to charitable causes of your choice.

5. If you are reviewing your estate or financial plans, please consider including a legacy gift, which can cost nothing during your lifetime. For instance, if you are already updating your will, you can incorporate brief wording that indicates your desire to leave a fixed dollar amount or percentage (such as 10%) of your estate to the JCF. Then, once received, we will ensure your gift is used for an endowment fund that pays out annual income to the nonprofit of your choice, to continue your generous legacy of philanthropy. Similarly, updating your beneficiary designations in your IRA or life insurance will enable you to leave a certain percentage to your heirs and the remainder to the JCF to endow your giving. These options can also be updated at a later date, if so desired.

If you have any questions about these year-end charitable giving options, I encourage you to contact me at (856) 673-2571 or dsnyder@jfedsnj.org

The JCF serves the South Jersey Jewish community to assist donors like you with charitable giving expertise, and we can even work with your advisor to develop philanthropic plans that maximize your tax benefits.

From all of us at the JCF, have a happy, healthy Thanksgiving and a festive, light-filled Chanukah!