As the year draws to a close, we want to share valuable information for you on how
tax-law changes may influence charitable planning for 2025. Understanding these changes may help you more strategically plan your giving for the year ahead.

Several individual tax provisions introduced in 2017 are set to expire after next year. Beginning in 2026, the rules governing charitable deductions will change in meaningful ways. With these shifts on the horizon, donors have a meaningful opportunity to benefit under today's more favorable giving rules before new limits and thresholds take effect.

Many donors are choosing to accelerate gifts, fulfill multi-year commitments now, or use certain giving tools while today's rules remain in place.

If you are still considering a year-end gift, our team is ready to assist you with thoughtful, relevant options. While we do not provide tax advice, we offer an overview below to help you engage your advisors productively.

Ways to Give Before December 31

Appreciated Securities: Reduce Capital Gains
Donating long-term appreciated stock may help donors avoid capital-gains tax while receiving a full charitable deduction under current rules.

Cash Gifts: Higher Deduction Limits in 2025
Current law allows donors to deduct cash gifts to public charities up to 60% of adjusted gross income. This limit is scheduled to revert to 50% on January 1, so some donors are choosing to complete pledge payments or fulfill future commitments this year.

Donor-Advised Fund (DAF) Contributions: Lock In Today’s Rules

Many donors are choosing to make a 2025 contribution to a donor-advised fund (DAF) to take advantage of today's higher deduction limits, while preserving the ability to recommend grants to Nicklaus Children's in the future. Did you know that Nicklaus Children’s is one of the first health systems in the state to offer its own DAF? Grants from the fund may be distributed at the donor’s own pace to their charities of choice, including Nicklaus Children’s.

Charitable Remainder Trusts (CRTs): Income + Impact
Some donors may find that establishing a CRT in 2025 results in a more favorable deduction than in 2026, when certain tax assumptions are scheduled to shift. A CRT can provide lifetime income to the donor while supporting Nicklaus Children's.

IRA Qualified Charitable Distributions (QCDs): Tax-Free Giving for Donors 70½+

As in previous years, a tax-free gift made directly from an IRA by individuals age 70½ or older can support Nicklaus Children's and may count toward the donor's required minimum distribution. These rules are not expected to change in 2026.

Thank you for the vital role you play in delivering hope and healing to patients and families at Nicklaus Children's. Your generosity helps provide exceptional pediatric healthcare for every child close to home, guides families through their hardest moments, and brings healing for years to come.

Questions? We'd be honored to discuss the possibilities.

Contact: Megan M. Brahimi, Senior Director, Gift Planning, (267) 394-2211; Megan.Brahimi@Nicklaushealth.org