Key legislative considerations for charitable planning:
–2025 TCJA sunset provisions: The top individual tax rate increase (37% to 39.6%) enhances charitable deduction value. Cash donation limits will decrease (60% to 50% of AGI). Estate tax exemption reduction (approximately $7 million from $13.6 million) increases the strategic value of charitable bequests.
–Universal deduction proposals: The Charitable Act would establish non-itemizer deductions, creating broader tax incentives for giving.
–Planning implications: Proactive strategies can position clients advantageously regardless of legislative outcomes.
The Community Foundation monitors tax policy developments affecting charitable giving and welcomes the opportunity to assist with navigating these complex issues.