Did Jew Know

As the calendar year draws to a close, year-end charitable giving remains one of the most effective ways to support the organizations that matter most while also receiving valuable tax benefits.

At Temple Beth Shalom, this season holds particular importance. Our Annual Campaign is currently at $200,000 toward our $350,000 goal, and with your support, we have the opportunity not only to meet that goal, but to exceed it in a year when strengthening our Jewish community feels especially urgent.

This year, many donors are exploring ways to maximize the impact of their giving, especially through non-cash assets (stocks, mutual funds and others), which can unlock significant tax advantages. Here’s what to know as you consider a year-end gift.

Why Year-End 2025 Matters
For the 2025 tax year, current IRS rules offer generous deductions for charitable contributions — beginning in 2026, new limitations on charitable deductions will reduce the overall tax benefit for many households.

That makes this year an especially strategic time to finalize gifts that align with both your philanthropic and financial goals.

Key Tax Benefits for 2025 Giving
1. Itemized Deductions: To take a charitable deduction, you must itemize using Schedule A. For many households, year-end planning, including “bunching” gifts, can make itemizing worthwhile.

2. Cash Gifts—Deduct Up to 60% of AGI: Cash contributions to qualified charities like Temple Beth Shalom are deductible up to 60% of your Adjusted Gross Income (AGI). This long-standing rule offers exceptional flexibility for donors considering a significant gift in 2025.

3. Appreciated Stocks and Non-Cash Assets: This is often the most tax-efficient way to give. By donating long-term appreciated securities, such as stocks, mutual funds, or other investments, you may:

• Deduct the fair market value (FMV) of the gift
• Avoid capital gains tax on the appreciation
• Deduct up to 30% of your AGI

A $10,000 stock gift purchased for $3,000 and held for more than one year could provide a generous deduction and eliminate capital gains altogether.

4. Donor-Advised Funds (DAFs): A DAF can be a powerful year-end tool. If you contribute appreciated assets or cash to a DAF before December 31, you:

• Receive an immediate tax deduction in 2025
• Still have the flexibility to recommend grants to Temple Beth Shalom and other nonprofits that are important to you on your own timeline

For many families, a DAF simplifies strategic and long-term philanthropy.

5. Qualified Charitable Distributions (QCDs) for Donors 70½+: If you are 70½ or older, you may give up to $108,000 in 2025 from your IRA directly to a charity through a QCD. Benefits include:

• The gift is not added to your  taxable income
• It counts toward your Required Minimum Distribution (RMD)(Must be taken at 73)
• You do not need to itemize to receive the benefit

For many retirees, a QCD is the most tax-advantaged way to give.

Smart Strategies Before December 31, 2025
“Bunching” Contributions: If your charitable giving varies year to year, consider consolidating multiple years of donations into 2025 to exceed the standard deduction threshold. This strategy is especially relevant with new deduction limitations coming in 2026.

Avoid 2026 Deduction Limits: In 2026, a new 0.5% AGI “floor” will be introduced before charitable deductions can be claimed. Giving more in 2025 can help you maximize today’s rules before the new limits reduce the tax benefit in future years.

Documentation and Deadlines:

• Temple Beth Shalom is a qualified 501(c)(3); all gifts are tax-deductible as allowed by law.
• Deadline: All contributions must be completed by December 31, 2025.

* Checks must be postmarked by December 31.
* Stock gifts should be initiated by mid-December to ensure processing time.

• Receipts:

* For gifts $250+, you will receive a contemporaneous acknowledgment.
* For non-cash gifts over $500, IRS Form 8283 is required.

As always, consult a tax professional for guidance specific to your situation.

Why Your Year-End Gift Matters This Year
Your support sustains everything that makes Temple Beth Shalom your spiritual home, from worship and music to learning, connection, and care. This year, your gift also contributes to the strength and resilience of our Austin Jewish community at a moment when Jewish visibility, belonging, and continuity feel more essential than ever. Your end-of-year contribution helps us:

• Support congregants in need
• Strengthen our religious school and youth programming
• Expand adult learning and cultural experiences
• Sustain clergy and staff
• Build the future of our synagogue community

We believe we can surpass our $350,000 campaign goal, and your generosity before December 31 can help get us there.