Tax Benefits of Giving: How to Give Smarter Before Tax Laws Change

With federal tax law changes coming in 2026, many New Canaan residents are exploring ways to make their charitable giving go further. One of the most effective tools is a donor-advised fund (DAF), offering immediate tax benefits while supporting the causes you care about over time.

At NCCF’s recent informational event, “Navigating Charitable Giving: Tools, Trends & Tax,” experts shared strategies for smart giving in 2025. Key takeaways included:

• “Bunching” charitable giving through a donor-advised fund before tax laws shif

• Understanding how upcoming federal changes may affect deductions

• Opportunities to contribute cash or appreciated securities to maximize tax advantages

Upcoming Tax Changes to Know:

• Charitable deductions will be reduced by 0.5% of Adjusted Gross Income (AGI)

• For those in the 37% tax bracket, deductions will be treated as if they are in the 35% bracket

• This effectively lowers the value of charitable contributions for some taxpayers

Today, more than 80 donor-advised and charitable funds have been established at NCCF. Fundholders benefit from:

• Immediate tax deductions

• Potential to avoid capital gains

• Investments that grow tax-free

• The ability to recommend grants year-round

• NCCF’s trusted local expertise and impact insights

If you’re interested in exploring how a donor-advised fund could support your giving strategy in 2025, contact:

Ann Rodwell-Lawton, Vice President
arodwelllawton@newcanaancf.org

Please note: NCCF does not provide tax advice. Consult your tax advisor to understand how these changes may affect your personal situation.