Cut Taxes and Help Causes You Love in 2025
Tax rules change all the time. Many people now skip itemizing deductions since the standard deduction is higher. In 2025 (for filing in 2026) the standard deduction is $15,000 if you’re single, or $30,000 for married couples filing together.
For context, in 2024 (for filing this year – 2025), the standard deduction is $14,600 if filing single, and $29,200 for married couples filing jointly.
Even if itemizing isn’t in your plans, there are powerful moves you can take to lower your taxes, and support causes you care about. Check out these four impactful ways to save on taxes and support causes that matter to you.
1. Avoid Capital Gains Taxes. Give long-term appreciated stocks or real property to a Donor Advised Fund (DAF)
Selling appreciated stocks or real estate can mean paying capital gains taxes! But if you give them straight to a Donor Advised Fund, you trigger tax-smart results:
- Immediate Maximum Tax Benefit based on what the asset is worth now
- No Capital Gains Taxes on assets that have grown over time
- Tax-free growth on the money in the DAF fund
- No Estate Tax
- Lower your Alternative Minimum Tax (AMT) – talk to your tax professional about this potential
Tip: Have S-Corp shares? Plan the gift smartly and start the discussion early to avoid assignment of income problems and (with iGiftFund’s unique solution) reduce unrelated business income tax (UBIT) by 60%.
2. Use Your IRA for Qualified Charitable Distributions (QCDs)
If you’re 70 ½ or older, you can send money from your traditional IRA to a Donor Restricted Fund (not a DAF) at iGiftFund. This counts towards your Required Minimum Distribution (RMD) and won’t push up your taxable income. Here’s why it’s a win-win-win:
- Can be used in addition to the standard deduction
- Avoids taxes on IRA distributions including RMDs
- Lowers taxable income
Tip: While QCDs cannot be made to Donor Advised Funds, private foundations, or supporting organizations, iGiftFund offers some alternatives:
- Designated Funds: Pick one or more charities upfront to receive grants on a schedule you choose.
- Field-of-Interest Funds: Specify broad categories and iGiftFund determines an aligned charity.
- Scholarship Funds: Support students at educational institutions you choose.
- Charitable Endowment Funds: The above options can be “endowed” to receive donations virtually forever.
Tip: Start using QCDs as early as age 70 ½.
3. Max Out Cash Gifts in Big Money Years
You can now deduct up to 60% of your Adjusted Gross Income (AGI) for cash contributions and up to 30% for all other asset types. You can spread any amounts in excess of theses limits for an additional 5 more years.in cash. Don’t miss out on this great way to cut taxes when you have a windfall or extra income.
A Donor Advised Fund makes it even better: Dump a big chunk in at once for a larger deduction, then spread out the giving over time. Taxes stay low, and your good deeds keep rolling.
4. Bunch Deductions for Tax Wins Every Other Year
If your deductions don’t beat the 2024 standard deduction, try “bunching” them. Stack them up in one year, then pause the next:
- Itemize in the big years when it pays off.
- Take the standard deduction in off years to save more.
- Keep giving to charities no matter what.
A Donor Advised Fund makes this easy—load it up in year a with high tax consequences for a maximum deduction, then recommend grants whenever you want.
The Bottom Line
With the right tools – Donor Advised Funds, QCDs, and bunching – shrink your tax bill and boost the causes you love.
In 2025, these moves let you give with purpose and be tax-smart. Taxes don’t have to be all negative – smart planning turns them into a way to spread good.
Learn more about how iGiftFund is the ideal philanthropic partner.