Linda Yeager, CFP^®, AAMS^®, FPQP™,
Senior Wealth Manager, Chief Compliance Officer

For many of our clients, the holiday season ushers in a spirit of generosity.

Giving Tuesday—celebrated the Tuesday after Thanksgiving—has become a global day of giving, reminding us that amid the year-end bustle, our greatest investments are those that benefit others.

For affluent families, it’s also a strategic moment to align generosity with thoughtful tax and estate planning. Here’s some tips to help you do just that.

Give with Intention, Not Impulse

Giving Tuesday inspires spontaneity, but impactful philanthropy often comes from intention. Before you make any major moves:

• Reflect on your core values and the causes you want to champion—such as advancing education, supporting local food banks, or funding medical research.
• Establish clear philanthropic goals to ensure your gifts make a measurable and lasting difference.
• Host a family giving meeting to discuss shared priorities and help younger generations appreciate the purpose and joy of giving.

Once everyone is on the same page, your advisory team can help turn your goals into focused strategies that align with your overall wealth plan.

Explore Strategic Vehicles for Giving

High-net-worth families have access to powerful charitable planning tools that can enhance both impact and tax efficiency:

• Qualified Charitable Distributions (QCDs): For those age 70½ or older, donating directly from an IRA can satisfy required minimum distributions (RMDs) and reduce taxable income.
• Donor-Advised Funds (DAFs): A flexible, efficient way to manage charitable giving. You can contribute cash, stock, or other appreciated assets, receive an immediate deduction, and recommend grants over time.

Maximize Tax Benefits Before Year-End

Year-end giving can be a great way to offset taxable income while advancing your charitable goals. Gifts of appreciated securities—rather than cash—can enable you to potentially avoid capital gains taxes and increase the value of your contribution by up to 20%.

The One Big Beautiful Bill Act (OBBBA) introduces several key tax changes that will affect charitable giving starting in 2026¹:

• 0.5% AGI floor: Only contributions exceeding 0.5% of adjusted gross income will be deductible.
• 35% deduction cap: The value of the charitable deduction is capped at the 35% tax rate, even for those in the 37% tax bracket.
• Above-the-line deduction: Non-itemizers may claim a modest deduction—up to $1,000 (single) or $2,000 (joint)—for direct cash gifts to public charities.
• 60% of AGI limit made permanent: Large cash gifts to public charities remain deductible up to 60% of AGI.

Tip: For wealthy donors, the OBBBA subtly shifts the calculus of giving—so the timing and structure of your gifts matters more than ever. You may want to consider bunching donations or accelerating significant gifts now to preserve full deductibility.

Make Giving Personal and Purposeful

Beyond the numbers, the most rewarding philanthropy is personal. Many families find joy in supporting organizations where they can see their impact firsthand—through volunteering, matching employee donations, or funding community initiatives.

If your family is looking for greater control, legacy-building opportunities, and a platform for multigeneration philanthropy, consider starting a private foundation. The potential tax benefits of doing so include²:

• Boost your impact over time by growing charitable contributions in a tax-advantaged environment.
• Receive an immediate income tax deduction for contributions (up to 30% of your AGI).
• Mitigate or eliminate estate taxes on assets donated to your foundation.
• Avoid capital gains taxes when you contribute highly appreciated assets.

Giving Tuesday FAQ

1. Should I consider speeding up my giving before the new OBBBA rules start?
If you are able, and if you have planned to make significant donations, 2025 may be the most advantageous year to complete them. You’ll still benefit from the current deduction rules without the 0.5% floor or 35% cap.¹

2. Will DAF contributions qualify for the new above-the-line deduction?
No. That deduction applies only to direct cash gifts to public charities, not to donor-advised funds or private foundations.

3. Can I still gift appreciated securities under OBBBA?
Absolutely. The OBBBA doesn’t change the fact that donating long-term appreciated assets remains one of the most tax-efficient ways to give.

4. How can I make charitable giving part of my family’s legacy?
Consider establishing a DAF and involving family members in grantmaking. You can also integrate charitable trusts into your estate plan to balance income needs with long-term giving goals.

5. Is philanthropy still worth it if deductions are smaller?
Yes! While the tax savings might be a bit smaller, the impact you make and the legacy you leave is just as meaningful.

Wrapping Things Up

This Giving Tuesday, consider how your wealth can do more than sustain—it can inspire.

Our financial advisors can help align tax-efficient giving strategies to ensure your generosity can create lasting change well beyond the holiday season.

Reach out today to get started.

Sources
¹ https://www.dafgiving360.org/
² https://foundationsource.com/

The views expressed represent the opinions of Tiller Private Wealth as of the date noted and are subject to change. These views are not intended as a forecast, a guarantee of future results, investment recommendation, or an offer to buy or sell any securities. The information provided is of a general nature and should not be construed as investment advice or to provide any investment, tax, financial or legal advice or service to any person. The information contained has been compiled from sources deemed reliable, yet accuracy is not guaranteed.

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