Tax Friendly Giving in 2025: Maximize Your Impact by Using Your DAF and Stock This Year
Tax Friendly Giving in 2025 Maximize Your Impact by Giving Non-Cash Assets
As we approach the end of 2025, now is the perfect time to put your donor-advised fund (DAF) and appreciated stock to work for YWCA Spokane. With significant tax law changes on the horizon for 2026, this year presents a powerful opportunity to maximize both your charitable impact and tax benefits, while ensuring we can continue providing critical services to survivors and families who need us most.
Understanding the 2026 Tax Shift
Starting in 2026, several important tax changes will take effect that could affect your charitable giving strategy. The federal estate tax exemption will rise substantially to $15 million per individual and $30 million per couple. Additionally, income tax rates that were lowered in 2017 are now permanent.
However, there's a critical detail: the state and local tax (SALT) deduction, currently at $40,000 through 2029, will revert to just $10,000 after 2030. This reduction could significantly diminish the tax benefits of itemized charitable deductions for many taxpayers in the coming years.
The bottom line: Making charitable gifts in 2025 may offer greater tax advantages than waiting until future years.
Put Your Donor-Advised Fund to Work
If you have a donor-advised fund, now is an ideal time to recommend grants to YWCA Spokane. Here's why:
Lock In Today's Tax Benefits by Bundling Multiple Years of Support: Consider recommending a grant that covers several years of giving to YWCA Spokane. By putting a larger sum into your DAF this year, you will benefit from this year’s tax advantages while setting yourself up to make future contributions. For example, if you typically give $5,000 annually, recommend a $15,000-$20,000 grant now and designate it for multi-year support. This provides us with:
- Predictable funding to plan programs and maintain services
- Stability to hire and retain qualified staff for our crisis hotline and shelter
- Resources to respond quickly when community needs surge
- Confidence that no survivor will be turned away due to funding constraints
Simple and Quick: Recommending a grant from your DAF is easy. Contact your DAF sponsor (such as Fidelity Charitable, Schwab Charitable, Innovia Foundation, or your community foundation) and request a grant to YWCA Spokane. Most can process this online in just a few minutes.
Flexible Scheduling: You can set up recurring grants from your DAF to YWCA Spokane ensuring consistent support without having to remember each time.
Gift Your Appreciated Stock Directly
If you hold appreciated stock, donating shares directly to YWCA Spokane is one of the most tax-efficient ways to give. Here's the advantage:
Your Dollar Goes Further: When you gift stock instead of cash, more of your generosity reaches survivors and families. Here's an example:
| Method | Stock Gift | Sell Then Donate Cash |
|---|---|---|
| Current Fair Market Value | $50,000 | $50,000 |
| Federal Capital Gains Tax | $0 | $4,700 |
| State Capital Gains Tax | $0 | $2,325 |
| Amount YWCA Recieves | $50,000 | $42,975 |
| Income Taxes You Avoid Due to Charitable Deduction | $21,580 | $18,670 |
By gifting stock directly, YWCA Spokane receives $7,025 more. That's enough to provide nearly two months of safe shelter for a family fleeing domestic violence.
Avoid Up to 20% in Capital Gains Taxes: When you sell appreciated stock, you could pay up to 20% in federal capital gains taxes, plus Washington state capital gains taxes. When you gift the stock directly to us, you avoid these taxes entirely while receiving a charitable deduction for the full fair market value.
Keep Your Portfolio Balanced: Want to maintain your current investment allocation? You can donate appreciated shares to YWCA Spokane and immediately repurchase the same number of shares. This eliminates capital gains on your previous shares and resets your "cost basis" to the current value, positioning you for future tax savings.
Easier Than Ever: Our free online tool through FreeWill makes gifting stock simple and secure. Just fill out an online form, sign it, and submit your gift. FreeWill protects your data with bank-level encryption, and 100% of your gift comes to YWCA Spokane. The entire process takes just minutes.
Make Your Gift Before Year-End
From Your Donor-Advised Fund: Contact your DAF sponsor and recommend a grant to YWCA Spokane. Consider making a multi-year commitment that provides us with predictable support.
From Your Stock Portfolio: Use our free online tool through FreeWill to donate appreciated stock easily and securely. [Give Stock Online]
Review your portfolio now to identify stock that has appreciated significantly—these shares offer the greatest tax advantage when donated.
Questions? Contact our philanthropy department at 509.789.9305 or philanthropy@ywcaspokane.org. We're here to help make your giving as impactful and tax-efficient as possible.
This information is for general informational purposes only and does not constitute tax advice. Please consult a tax, legal, or accounting professional for guidance specific to your situation.
By: Claire Schueman
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