News for Professional Advisors

When the SECURE 2.0 Act and Tax Cuts and Jobs Act (TCJA) passed, they both included several provisions that affected charitable giving. Now, the TCJA is due to sunset in 2025 unless additional legislation arrives to extend it.

With its future unclear, it may be a good time to start having conversations with your clients about how philanthropic planning can help them prepare for these changes.

Here are a few tips to keep in mind for both pieces of legislation:

As a result of the SECURE 2.0 Act, the limit on Qualified Charitable Distributions (QCDs) from retirement accounts has been adjusted for inflation for the 2024 tax year, increasing to $105,000.

• QCDs remain a great charitable tool for your clients, but keep in mind – QCDs can’t contribute to a donor advised fund. The Foundation has several other fund types that can receive these assets, so make sure you contact us to discuss your client’s strategy.

As part of the TCJA, your clients may currently deduct their charitable giving up to 60% of their AGI through 2025, but that limit drops to 50% of AGI when the TCJA sunsets.

• If your clients anticipate making significant charitable gifts over the next several years, you might advise them to give to their donor advised fund now in order to reap greater tax benefits from the higher AGI limits.

Assuming that the TCJA sunsets, the estate tax exemption will drop back to 2017 levels, indexed for inflation, which may mean that many of your clients suddenly have a taxable estate.

• Philanthropy can serve as a valuable tool to help reduce the size of an estate. Charitable estate planning remains an important piece of your clients’ overall plan, and a testamentary, deferred fund established at the Foundation can help simplify the process for you and your clients.

Interested in exploring how including philanthropic planning for your clients can prove beneficial? We’re here to help.