Countdown to 2026: tips for tax-savvy charitable giving

It’s almost 2026, and now is the time to dot the i’s and cross the t’s to wrap up your annual charitable giving. The Arizona Community Foundation is honored to help you support charities that make a difference in our community. As the year winds down, consider these 10 tips:

1. Now is the time. 2025 is a pivotal year for charitable planning. With more stringent charitable deduction limitations taking effect in 2026 under new tax laws, this year may offer a favorable tax environment for your giving, depending on your situation. Talk with your tax advisor now to find out what makes the most sense. Our ACF experts are also here to guide you. 
2. The benefits of “bunching” are real. Bunching is a tax strategy where you combine multiple years’ worth of charitable contributions into a single tax year; you may be able to exceed the standard deduction this year and maximize your tax benefits.   
3. Use your DAF to simplify year-end giving. You can make one tax-deductible contribution and make grants easily from one place. ACF ‘s flexibility lets you choose how much or how little assistance you need in charitable giving. You can use the online portal to make your grant distributions on your own. Or, work with our ACF experts. They are tuned into the community and understand where the needs are, if you need suggestions. They can also help you align your giving with the causes you care about. 
4. Give appreciated stock instead of cash. Donating long-term appreciated securities to your fund may eliminate capital gains tax and increase your charitable impact. Talk with your tax advisor so these gifts can be processed well before the end of the year.
5. Explore giving from your IRA if you’re 70½ or older. A Qualified Charitable Distribution (QCD) can reduce taxable income and, if applicable, satisfy required minimum distributions—to the tune of $108,000 per taxpayer in 2025. IRS rules allow you to make QCDs to a wide variety of funds at ACF, just not to your DAF. Explore ACF-directed funds such as the Thriving Arizona Fund, or one of our impact area or community funds. 
6. Consider how to make your gift flexible. Unrestricted grants provide funds for operations, staffing, or other types of expenses. Giving nonprofits the flexibility to use funds as needed may be one of the most important ways to ensure nonprofits can continue to serve the community. Another option—the above-mentioned ACF-directed funds—which also have this flexibility and allow ACF to provide resources to nonprofits quickly and efficiently. 
7. Review your beneficiary designations. Naming your DAF or another ACF fund as a beneficiary of an IRA or other retirement account can create meaningful future gifts while reducing the tax burden on heirs.
8. Avoid last-minute surprises. Gifts of complex assets—such as real estate or closely-held stock—require additional steps and a lot of lead time, so contact ACF now if you’re considering these options. Even if it is too late to complete these gifts in 2025, we can help you start on the right foot for 2026.
9. Let us do some of the work for you. We are here to help you explore the most tax-efficient ways to meet your charitable goals, whether you’re planning year-end gifts, updating a legacy plan, or thinking ahead to the changes coming in 2026. We can also work with your existing tax advisor. 

We look forward to supporting your charitable goals this year and for many years to come.