Limits in 2026: Under the One Big Beautiful Bill Act (OBBBA), limits on charitable deductions will tighten beginning in 2026. That means some clients may want to “front-load” or “bunch” contributions—such as by giving more this year through establishing or adding to a donor-advised fund—to maximize both their tax benefits and their impact.
Estate Tax Exemption: The One Big Beautiful Bill Act (OBBBA) extended or “made permanent” many favorable tax provisions, notably the elevated estate tax exemption. In technical terms, under the new law, the 2025 estate tax exemption is $13.99 million for single filers and $27.98 million married filing jointly. In 2026, these numbers increase to $15 million and $30 million respectively. You may recall that the higher exemption was originally scheduled to sunset at the end of this year, which would have caused a lot more estates to be subject to tax. This, in turn, prompted many people to lean on charitable gifts in their wills and trusts to blunt the impact of estate taxes. Keep planning!
Stick to the Basics: Sure, a lot is changing, but a lot isn’t! Appreciated stock is still likely to be a much more tax-savvy gift to charity than cash, and it’s important to keep this top of mind. In addition, IRAs remain a powerful charitable planning tool. For instance, when you name a fund at the Community Foundation as the beneficiary of an IRA, the gift avoids estate tax and income tax, both of which can hit your heirs hard.
The team at the Community Foundation is honored to serve as a resource and sounding board as you build your charitable plans and pursue your philanthropic objectives for making a difference in the community. This article is provided for informational purposes only. It is not intended as legal, accounting, or financial planning advice. Please consult your tax or legal advisor to learn how this information might apply to your own situation.