Year End Smart Giving Guide
As the end of the calendar year approaches, many individuals and families take time to reflect—not only on their personal and financial goals, but also on the impact they hope to make through charitable giving. At The Catholic Foundation of Greater Philadelphia, we are committed to supporting you every step of the way.
Why Giving in 2025 is Beneficial
Beginning in 2026, new federal tax law changes will significantly reshape how charitable deductions are calculated. Key updates include:
- A new 0.5% adjusted gross income floor—only contributions above this threshold will qualify for a deduction.
- A 35% cap on total itemized deductions, limiting the overall deduction amount available to taxpayers.
For higher-income donors, these changes could substantially reduce the deductibility of charitable gifts. By making contributions in 2025, you can take full advantage of the current rules before these limitations take effect.
A Donor-Advised Fund (DAF) with The Catholic Foundation is a strategic way to act now. You can contribute assets this year—locking in today’s more favorable deduction structure—while retaining the flexibility to recommend grants to the nonprofits and ministries you care about whenever the time is right. See below for more information.
A Donor-Advised Fund (DAF) with The Catholic Foundation is a strategic way to act now. You can contribute assets this year—locking in today’s more favorable deduction structure—while retaining the flexibility to recommend grants to the nonprofits and ministries you care about whenever the time is right. See below for more information.
Key Dates to Know
To ensure your contributions and grants are processed on time for 2025, please keep these important deadlines in mind:
- Submit Donor-Advised Fund Grant Recommendations by December 19 to ensure your grant is mailed to your charity before year-end.
- Gifts of appreciated securities, such as shares of stock or mutual funds, can take up to 10 days to transfer. Begin this process before December 19.
- Qualified Charitable Distributions (QCD) from an IRA must be completed by December 31 to qualify for the 2025 tax year.
- Wire transfers must be received on or before December 31.
- Gifts in the form of cash, check, or money order must be postmarked no later than December 31.
- Gifts made via credit card must be made before midnight on December 31.
Three Powerful Ways to Maximize Your Giving
1. Gifts of stock, securities and mutual funds
Donating appreciated securities is a simple and tax-efficient way to make a meaningful impact. By giving stock directly, you may avoid capital gains taxes and receive a charitable deduction for the full market value of your gift. Securities must be held for at least one year to qualify. This is a powerful way to turn your investments into a legacy of faith and service.
Donating appreciated securities is a simple and tax-efficient way to make a meaningful impact. By giving stock directly, you may avoid capital gains taxes and receive a charitable deduction for the full market value of your gift. Securities must be held for at least one year to qualify. This is a powerful way to turn your investments into a legacy of faith and service.
2. Gifts from a Traditional IRA
For donors age 70½ and older, a Qualified Charitable Distribution (QCD) is a wonderful way to support charitable causes with pre-tax dollars. In 2025, you can give up to $108,000 per person (or $216,000 per couple) without paying income tax on the transfer. If you are 73 or older, a QCD can also satisfy your Required Minimum Distribution (RMD). To qualify, your IRA administrator must send the funds directly to the charity.
For donors age 70½ and older, a Qualified Charitable Distribution (QCD) is a wonderful way to support charitable causes with pre-tax dollars. In 2025, you can give up to $108,000 per person (or $216,000 per couple) without paying income tax on the transfer. If you are 73 or older, a QCD can also satisfy your Required Minimum Distribution (RMD). To qualify, your IRA administrator must send the funds directly to the charity.
3. Donor-Advised Funds (DAFs)
By opening a DAF with The Catholic Foundation, you can align your generosity with your faith and long-term stewardship goals. Contributions provide an immediate charitable deduction and are invested in accordance with Catholic Socially Responsible Investment Guidelines, growing tax-free over time. You can recommend grants to parishes, ministries, schools, and charities whenever you choose. You may also name your fund and designate loved ones as advisors or successors—creating a lasting legacy of faith-filled generosity.
With upcoming tax code changes in 2026, many donors are choosing to “bunch” several years of giving into 2025 to maximize tax savings while continuing their charitable support in future years. DAFs can be funded with cash or appreciated stock.
You can open a Donor-Advised Fund today with The Catholic Foundation for as little as $250. It’s a meaningful way to plan ahead, give thanks for God’s blessings, and strengthen the Church for years to come.
By opening a DAF with The Catholic Foundation, you can align your generosity with your faith and long-term stewardship goals. Contributions provide an immediate charitable deduction and are invested in accordance with Catholic Socially Responsible Investment Guidelines, growing tax-free over time. You can recommend grants to parishes, ministries, schools, and charities whenever you choose. You may also name your fund and designate loved ones as advisors or successors—creating a lasting legacy of faith-filled generosity.
With upcoming tax code changes in 2026, many donors are choosing to “bunch” several years of giving into 2025 to maximize tax savings while continuing their charitable support in future years. DAFs can be funded with cash or appreciated stock.
You can open a Donor-Advised Fund today with The Catholic Foundation for as little as $250. It’s a meaningful way to plan ahead, give thanks for God’s blessings, and strengthen the Church for years to come.
Learn More
Contact Us
The Catholic Foundation would be delighted to help you simplify your end-of-year giving! We invite you to contact Garrett Owen, Chief Philanthropy Officer, at gowen@thecfgp.org or 215-587-5650 to explore your options.
The information on this page does not constitute legal or financial advice. Consult your financial advisor and obtain professional counsel from an attorney to assist you in making a gift in a way that will benefit the people and organizations you care most about.