New tax law makes 2025 a strategic year for giving

Highlighting key provisions for itemizers, non-itemizers and corporations.

At nearly 900 pages, US legislation known as the One Big Beautiful Bill Act introduced numerous tax law provisions. With so much to decipher, it would be understandable if you skipped over the changes related to charitable giving since they don’t go into effect until 2026.

The coming changes, however, have strategic implications for 2025.

Notably, you may want to maximize the deduction benefits of current tax law ahead of new floors and caps that will be introduced for itemizers in 2026. Non-itemizers may want to do the same, if possible, though for some it could be more strategic to let the calendar flip.

Considerations:

• Accelerating plans for giving to 2025
• Bunching multiple years of giving into a single year
• Using a donor advised fund for increased flexibility
• Deferring qualified cash donations to 2026 (for non-itemizers)

Key provisions for itemizers

Beginning in 2026, itemized charitable deductions will apply only to contributions that exceed 0.5% of your adjusted gross income (AGI). For example, if your AGI is $350,000, only donations above $1,750 will be deductible. For high earners, charitable deductions will be capped at 35% of the donation amount, down from the current top marginal rate of 37%.
The tax law that remains in effect for 2025 has no AGI-related floor and maintains the slightly higher allowance for the 37% marginal tax rate.
This is where itemizers may want to consider accelerating their planned giving in 2025 or utilizing a donor advised fund (DAF), which is a charitable investment account that allows for a same-year tax deduction for contributions of cash, stocks or other assets while allowing you to recommend grants to charities over time. Once funds are in a DAF, they cannot be withdrawn for other purposes, but for those committed to giving, a DAF offers strategic flexibility.
A DAF accommodates what is referred to as a bunching strategy, which combines the donations of two or more years into a single year. The tax benefit comes in the year the lump sum contribution is made into the DAF. And with the flexibility of a DAF, gifts or donations can be made to eligible charities into the future on a cadence of your choosing.
Also, assets in a DAF can be invested, potentially increasing the value and, therefore, power of your original contribution.

Key provisions for non-itemizers

The new law will reintroduce and increase an above-the-line deduction for qualified charitable contributions, making a deduction available to taxpayers who do not itemize. Starting in 2026, individuals can deduct up to $1,000, and joint filers can deduct $2,000. Once it takes effect, this provision does not expire.
Donations made in 2025, however, remain subject to existing tax law and cannot be deducted by non-itemizers.
It’s worth noting that even once the new deduction goes into effect, gifts to DAFs and private foundations will not be eligible for deductions by non-itemizers. So, for a non- itemizer who plans to open or contribute to a DAF or a private non-operating foundation in 2026 and beyond, it could be strategic to accelerate your giving to 2025 if the total of your eligible deductions would enable you to itemize on your 2025 tax return.
If your total deductions remain below the itemizing threshold for 2025, and you are not contributing to a DAF or private foundation, a donation made on December 31, 2025, would not be deductible. A donation made on January 1, 2026, would potentially qualify for the above-the-line deduction.

Key provisions for corporations

Starting in 2026, corporate entities will be able to deduct only charitable contributions that exceed 1% of taxable income, though an overall cap of 10% remains.
Similar to the new provisions for individuals who itemize, businesses that give back to their communities through donations or would like to implement a planned giving strategy may want to accelerate their giving to 2025 or consider using a DAF to maximize tax efficiency and giving power.
For example, if a company typically donates 3% of its taxable income each year, the first 1% of that donation will no longer be deductible starting in 2026. Bunching two or even three years’ worth of donations into a single year would allow the business to deduct all but 1% of the total donation.

A single-year donation just below the 10% cap could prove to be most tax efficient in the long term. Making grants from the DAF to a company’s chosen causes can be done into the future, either on a planned cadence or as need arises.

What about donations from IRAs?

The new law does not alter the rules for qualified charitable distributions from IRAs. In 2025, if you are 70 1/2 or older, you can donate up to $108,000 annually directly from your IRA to a qualified charity without it counting as taxable income.
With so much to consider, a team of experienced professionals can help you maximize your gifting power and your tax efficiency in 2025 and beyond.

Changes in tax laws or regulations may occur at any time and could substantially impact your situation. While we are familiar with the tax provisions of the issues presented herein, as Financial Advisors we are not qualified to render advice on tax or legal matters. Raymond James and its advisors do not offer tax or legal advice. You should discuss any tax or legal matters with the appropriate professional.

Donors are urged to consult their attorneys, accountants or tax advisors with respect to questions relating to the deductibility of various types of contributions to a Donor-Advised Fund for federal and state tax purposes.

Links are being provided for information purposes only. Raymond James is not affiliated with and does not endorse, authorize or sponsor any of the listed websites or their respective sponsors. Raymond James is not responsible for the content of any website or the collection or use of information regarding any website’s users and/or members. Raymond James does not provide tax or legal services. Please discuss these matters with the appropriate professional.

Chicken Cacciatore

1.5 kg (3.5 lbs) whole chicken with skin (you can also buy chicken pieces, bone in, skin on)
250 gr (8.8 oz) pitted green olives
2 medium-sized red onions
180 gr (6.3 oz) salted capers
½ cup of table white wine
3 rosemary sprigs
EVOO
Mediterranean Sea Salt
Ground black pepper

Finely chopped onions, capers and olives.

Directions

If using a whole chicken, cut into thighs, legs and breasts.

Heat a large sauté pan. Brown the chicken, and as soon as a golden patina is reached on both sides, add EVOO, finely chopped onions, capers, olives and rosemary sprigs. Stir it. Pour in the white wine and let it blend into the sauce. Once the alcoholic part has been reduced, season with salt and ground black pepper, stir and then cook over medium heat for about 15 minutes.

source: https://www.lacucinasabina.com/recipe/chicken-cacciatore/

Links are being provided for information purposes only. Raymond James is not affiliated with and does not endorse, authorize or sponsor any of the listed websites or their respective sponsors. Raymond James is not responsible for the content of any website or the collection or use of information regarding any website’s users and/or members. Raymond James does not provide tax or legal services. Please discuss these matters with the appropriate professional.

It’s spooky season, but what if the scariest thing isn’t ghosts or ghouls, but your investment performance? A dip in the market can feel downright haunting and can raise some horrible specters, such as "What if I lose everything?" and "What if I should have made different investment choices?" Is it time to get out?

Everyone sometimes gets nervous about their portfolio, but reacting in fear is not the way forward. Let's see if we can chase off that spooky shadow.

Feel the Fear, Master the Response

It's called a stock market panic for a reason. When many people get spooked and sell, the markets can tumble. Panicking during a short-term dip isn’t a smart long-term plan, especially as the dip deepens.

In fact, selling as stocks tumble can be far worse for your financial future than staying the course. Even a dip of a few months doesn't determine your success for longer-term investment performance. What is more important is that your investments remain aligned with your goals, risk tolerance, and time horizon. You might not think you are on track, but you are.

History Offers Some Perspective

Basic fact: The market has always rebounded. Even from the worst dips. Even the Great Depression didn't last forever. Past performance doesn’t guarantee future results, but history shows that staying invested, no matter how challenging, has typically rewarded investors more than jumping ship (and the water can be cold).

Remember 2008? That was a bad dip, and a lot of people got out. Many people suffered real hardship, too, but those who stuck with it through the downturn and beyond saw the market recover and were able to not just recoup their losses but thrive.

Of course, a dip might be a good time to adjust some investments, but it's generally not the right time to flee.

How to Face the Monster Calmly

Emotions are tricky, though. If you see your retirement portfolio act like a downhill skier, you might even feel the spooky shadow of "What if I can't retire?" Dealing with those emotions can be a challenge.

But instead of pulling your money, this is a good time to review your plan:

1. Check your long-term goals. Has anything changed in your life? If you have had a drop in income, then it might be time to review a few things. Otherwise, though, just audit your life and lifestyle and any immediate plans.
2. Assess your risk tolerance. Your peace of mind does matter. Is your portfolio aligned with your comfort level for market volatility? Are you discovering your tolerance may be lower (or higher) than you thought?
3. Speak with your advisor. This is what financial advisors are for. Because we aren't emotionally invested, we can help you go over your portfolio and talk you out of emotional decisions that will only cause you and your family harm.

You Don't Have to Face the Fear Alone

At CrossleyShear Wealth Management, we are here to help you meet your financial goals. If the “What if Monster” is under your bed or peering through the windows, we can help you deal with it and keep focused. It's not just our job to help you succeed but also to help you stay the course and reason, not emotionally. We can calm the "What if Monster" for you.

So, if you're starting to feel a bit uneasy about your investment performance right now, remember that you aren't alone, and talk to us. Let us help you review and adjust your strategy and make those calm decisions that keep fear from driving your future.

Contact us at any time to help chase the monsters away. Or schedule your annual review today. We really can help and are dedicated to your financial goals.

Every investor's situation is unique and you should consider your investment goals, risk tolerance and time horizon before making any investment. Prior to making an investment decision, please consult with your financial advisor about your individual situation. The foregoing information has been obtained from sources considered to be reliable, but we do not guarantee that it is accurate or complete, it is not a statement of all available data necessary for making an investment decision, and it does not constitute a recommendation. Any opinions are those of Dale Crossley and Evan Shear and not necessarily those of Raymond James.

Relationships can be wonderful, but still have disagreements. One of the most common disagreements between partners is about managing joint finances. It often causes much tension and can happen early on or at any point in your relationship. You may have different priorities, such as saving for retirement, planning a home renovation, or saving money for children's college funds. Or, maybe one of you wants to invest, and the other wants just to keep your money in savings.

When it seems like you just can't come to an agreement, the “What If Monster” can become a problem. You might think, "What if our different opinions ruin our plans or relationship?" Let's look at that "what if" question and turn it into a positive conversation.

Acknowledge That Different Opinions Are Normal

It is not unusual for two people to have different opinions about what to do with money. Our upbringing, life experiences, fears, and ultimate financial goals typically shape our views. Instead of viewing your partner's views as "wrong," try to understand where they are coming from. It can allow you to start an open and honest conversation about your joint finances. Your values don't have to align perfectly. Finding a mutual understanding and a shared strategy that aligns with your values is essential.

Create Space for a Conversation About Money

It's essential to discuss what you want to do with your money. However, you want to have it at the correct time. When one of you is stressed or distracted, or you have just had an unexpected expense, it is not the time. Find a time that you are willing to hear each other out and devise a plan.

Here are some good questions to ask:

• What are the goals you feel strongly about?
• Are you worried about something financial in particular?
• What does financial security look like to you?

Opening up and answering these questions can help you understand each other's motivations, making compromise much easier.

Create a Team-Based Approach to Joint Finances

Once you know what you want to do with your money, it's time to make a unified plan that incorporates both goals. It can be beneficial to bring in a financial advisor like CrossleyShear Wealth Management to help.

They are a third party who can help couples do the following:

• Balance long-term needs with short-term wants.
• Identify your shared goals and core values.
• Establish clear expectations and roles around money management.
• Develop a customized plan that incorporates each person's priorities.

Schedule Regular Check-Ins

Once you have a financial plan that you both are comfortable with, it's important to plan regular check-ins about the plan. The plan you create now will work for now, but it might not work later. As you grow, your goals, lifestyle, and income will change. Scheduling regular check-ins with your plan is also vital in determining if any changes are necessary. Annually or anytime there is a significant life change, it is a good place to start.

The “What If Monster” Calms Down When You're on the Same Page

Just because you have disagreements about where your money should go doesn't mean your relationship is doomed to fail. It is human nature not to agree on everything. The key is communicating openly, planning intentionally, and leaning on a trusted advisor to help you make a plan you can stick to.

At CrossleyShear, we can help partners navigate conversations around their joint finances and turn tension into teamwork. If you're ready to make a plan, we are here to help. Contact us today to get started.

Every investor's situation is unique and you should consider your investment goals, risk tolerance and time horizon before making any investment. Prior to making an investment decision, please consult with your financial advisor about your individual situation. The foregoing information has been obtained from sources considered to be reliable, but we do not guarantee that it is accurate or complete, it is not a statement of all available data necessary for making an investment decision, and it does not constitute a recommendation. Any opinions are those of Dale Crossley and Evan Shear and not necessarily those of Raymond James.