Think about Smarter Giving
The connection between tax planning and charitable giving is closer than most people realize. With the right strategies, your gift to the Arboretum Foundation can also reduce your tax burden, increase your philanthropic impact and support your broader financial goals. Here are a few approaches worth discussing with your financial or tax advisor.
Giving from Your IRA
If you are 70½ or older in 2026, you may be able to make a Qualified Charitable Distribution (QCD) directly from your Individual Retirement Account (IRA) to a qualified nonprofit (like the Arboretum Foundation) up to $111,000 per year. The amount transferred counts toward your Required Minimum Distribution (RMD) but is excluded from your taxable income, making it one of the most tax-efficient ways to give. For donors who no longer itemize deductions, this strategy can be especially powerful.
Donating Appreciated Securities
If you hold stocks, mutual funds, or other securities that have grown in value, giving them directly, rather than selling them first, can offer a significant tax advantage. When you donate appreciated securities you have held for more than a year, you avoid paying capital gains tax on the appreciation and may deduct the full fair market value of the asset. It’s a strategy that allows you to give more while keeping more, and one that is worth revisiting each year as markets shift.
Charitable Gift Annuities
A charitable gift annuity (CGA) is a giving arrangement that offers something relatively rare: a guaranteed income stream for life in exchange for a charitable gift. You transfer assets to an organization, receive fixed payments for as long as you live, and may qualify for a partial charitable deduction in the year the gift is made. A portion of your annuity payments may also be tax-free, depending on how the gift is structured. For donors looking to simplify their finances while maintaining steady income, a CGA can be an appealing option.
A Good Habit All Year Long
Tax season has a way of focusing our attention, but the best giving strategies are rarely made under deadline pressure. The conversations you have with your advisor now, about your income, your portfolio, your charitable interests, can lay the groundwork for decisions that feel right financially and personally.
We welcome the opportunity to speak with you and your advisors about any of these options. Whether you are exploring a gift for the first time or revisiting a longstanding commitment, we are here to help you make the most of your generosity. Please contact Audrey Pettyjohn MPA, CSPG, Director of Gift Planning, at 626.566.3718 or audrey.pettyjohn@arboretum.org
This article is for informational purposes only and does not constitute tax or legal advice. Please consult your financial, tax, or legal advisor before making any planned gift.
