2025 Year-End Tax Planning Tools

This letter summarizes some of the available charitable giving and tax planning tools that may benefit donors and the important causes and organizations they support. All of us at the Foundation are grateful for our donors’ continued generosity and commitment to the Foundation’s mission of building and sustaining our vibrant community. Every contribution and grant recommendation makes a meaningful difference. Thank you.

OJCF hopes to receive year-end gifts from donors in accordance with the following schedule:

• Real Estate, Restricted Securities, Life Insurance, and Other Complex Gifts: On or before December 8, 2025.
  

• Registered (Publicly Traded) Securities: On or before December 19, 2025.
  

• Wire Transfers: On or before December 29, 2025.
  

• Checks Mailed: Postmarked on or before December 31, 2025, mailed to:

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                  Oregon Jewish Community Foundation

                  1618 SW First Avenue, Suite 350

                  Portland, OR 97201

                  Attn: Finance Department

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• Checks Delivered to OJCF’s Office: Received by OJCF on or before December 31, 2025, at 2:00pm.
  

The 2025 Budget Reconciliation Act, commonly referred to as the “One Big Beautiful Bill” (the 2025 Budget Act), may offer tax planning advantages this year in addition to customary strategies available to donors. Also, donors may want to amplify their support for charitable organizations in 2025 due to anticipated tax law changes in subsequent years.

• Permanent Tax Rates: The 2025 Budget Act: (a) made permanent individual income tax brackets (10% to 37%); (b) increased the standard deduction ($31,000 in 2025 for married couples filing jointly); and (c) eliminated personal and dependent exemptions. Individuals aged 65 and older may qualify for a deduction of up to $6,000 for tax years 2025 through 2028.
  

• SALT Deduction Increase: The 2025 Budget Act temporarily increased the cap on deducting state and local taxes to $40,000 for married couples filing jointly with a modified adjusted gross income below $500,000. Depending on the total amount of a donor’s state and local income and property taxes, the cap increase may allow donors to itemize deductions, including deductions for charitable contributions, in the current year.
  

• The Floor and Ceiling of Charitable Deductions: As of next year, donors who itemize their deductions may only deduct the portion of charitable gifts above 0.5% of their adjusted gross income. Also, the 2025 Budget Act capped the value of all itemized deductions for donors in the 37% tax bracket, including charitable contributions, at a tax savings rate of 35%. As a result, donors contemplating a significant gift after this year may want to make the gift in 2025 to avoid the new floor and ceiling rules. As noted below, accelerating contributions to a donor advised fund (DAF), including aggregating several years of contributions before the end of this year, will avoid or diminish the impact of these new floor and ceiling rules applicable to charitable deductions.
  

• Deduction for Nonitemizers: Beginning in 2026, donors who use the standard deduction may deduct cash contributions up to $2,000 (married filing jointly) as a charitable contribution. This does not apply to cash contributions to DAFs.
  

• Gift Appreciated and Retirement Assets: Gifts of appreciated assets, such as real estate or securities, continue to be the most tax-efficient gifts, especially with the market growth of investment portfolios over the last year. Donors receive the deduction for the full value of the donated non-cash appreciated asset without incurring any capital gains tax. Gifts of retirement assets can also provide a current tax benefit while removing the assets from a donor’s estate.    
  

• Donate to a DAF: Many donors plan to make an annual donation to the same charity every year for several years. If a donor has significant income to offset in the current year, the donor could consider donating to a DAF the full amount contemplated to be donated over time and instead make an annual grant from the DAF. Contributing a larger amount to a DAF in a single year may also offer a donor the opportunity to develop a distribution plan from the DAF that accomplishes the donor’s multi-year charitable goals. Additionally, the contribution will be invested and could, depending on the market, result in additional tax-free funds to donate to the charity.
  

• Combine Charitable Gifts: Only donors who itemize their deductions receive a tax benefit from a charitable contribution. Combining two or more years of potential charitable contributions into a single year may create an opportunity to itemize instead of using the standard deduction, which is $31,500 in 2025 for married couples. With the new floor and ceiling on charitable deductions taking effect in 2026, this strategy may offer additional tax planning advantages in 2025.
  

• Consider an IRA Charitable Rollover: A donor (or a donor’s spouse) who is at least 70.5 years old may be able to make a qualified charitable distribution (QCD) up to $108,000 from a retirement account directly to a charity (but not a DAF) without incurring any income taxes. This could be a beneficial tax strategy for donors who do not itemize deductions. If the donor is at least 73 years old, the QCD will help satisfy the IRA required minimum distribution. QCDs also reduce potential estate tax liability of retirement accounts. Contributions from retirement accounts that do not qualify as a QCD may be eligible for charitable deduction, if the donor itemizes deductions. A donor can also establish a charitable gift annuity or a charitable trust, and receive payments over time, by making a one-time distribution of up to $53,000 from a retirement account.
  

The “2025 Year-End Tax Planning Tools” is based in part on information provided by the Jewish Federations of North America.

OJCF professionals are experienced at accepting distributions from retirement accounts and appreciated assets, including publicly traded stock, privately held business interests, real estate, life insurance, and certain collectibles. OJCF professionals are also experienced at helping donors with intergenerational philanthropy or developing multi-year giving strategies. If you have any questions or need additional information, or wish to open a donor advised fund, please contact Rachael Evans, OJCF’s Director of Stewardship, at rachaele@ojcf.org or 503-248-9328.

Disclaimer: The Oregon Jewish Community Foundation does not provide investment, legal, accounting, or tax advice. Nothing in this letter is intended, or shall be deemed to be construed, as such advice. Please consult with your professional advisors regarding the matters described in this letter or before making any tax planning or investment decisions.