Big changes to charitable tax benefits are coming in 2026. A gift this year—especially through a donor-advised fund—can go further for you and the causes you love.

When you give to charity, you’re not just changing lives—you may also receive a tax benefit. But starting in 2026, new federal rules will make it harder for many households to deduct their charitable giving. That’s why 2025 is a unique, time-sensitive opportunity to be generous and strategic, and as the end of the year approaches, it is important for you to keep your donor-advised fund (DAF) and/or Qualified Charitable Distributions (QCD) in mind.

Beginning in 2026:

• A new “floor” on charitable deductions means the first 0.5% of your adjusted gross income income given to charity won’t be deductible.
• The high standard deduction continues, which means fewer people will itemize—and if you don’t itemize, your charitable gifts generally don’t reduce your taxes
• Allowable itemized deductions will be reduced for high-income earners (those in the 37% tax bracket).
• Seniors 65+ will see even higher standard deductions, making it less likely they’ll itemize

Qualified Charitable Distributions (QCD)

Individuals 70½ or older can make QCDs from their IRAs-up to $108,000- to reduce taxable income.   For those 73 or older, QCDs can also satisfy your Required Minimum Distribution (RMD). QCDs currently must go directly to qualifying charities. Consider supporting the Paso del Norte Community Foundation and/or one or more of our designated funds, like an existing or new scholarship fund, Heart Gallery of El Paso, Women’s Fund of El Paso, Operation Noel, or Senior Fund.

How a donor-advised fund at PdNCF can help—this year

A donor-advised fund (DAF) through the Paso del Norte Community Foundation lets you make a charitable gift now, receive an immediate tax deduction (subject to IRS rules), and recommend grants to your favorite nonprofits over time.

In 2025, that becomes a powerful strategy:

• “Bunch” multiple years of giving into one larger gift this year. Instead of giving smaller amounts each year, you can contribute several years’ worth of donations to a DAF in 2025.
• That larger 2025 gift may help you:

• Exceed the standard deduction and itemize this year
• Avoid the new 0.5% “floor” on deductible giving
• Capture a higher tax benefit before itemized deductions are reduced

• Then, in 2026 and beyond, you can continue supporting your favorite charities from your DAF, even if your annual giving no longer qualifies for a tax deduction.

For donors with appreciated stocks or other investments, contributing these assets to a DAF in 2025 can be especially attractive, potentially eliminating capital gains tax and maximizing the impact of your gift.

Establishing a donor-advised fund is easy. Contact the Paso del Norte Community Foundation at (915) 218-2641 or visit pdnfoundation.org to learn how a donor-advised fund can support your charitable goals this year.