Smart Ways to Give Before the Clock Strikes Midnight on December 31, 2025
The Missouri Historical Society Suggests These Smart Tips for Giving Before 2025 Ends
Consider Tax Laws When You Donate
You can finish this year strong with a gift that maximizes your charitable impact at the Missouri Historical Society and that may reduce your taxes. Review the recent tax law changes below and consider how they might affect your giving in 2025:
Change: New floor for itemizers
Starting with the 2026 tax year, you will need to give at least 0.5% of your adjusted gross income (AGI) to claim a charitable deduction.
What it means for you: Consider maximizing your giving in 2025 before this new threshold takes effect.
Change: New limit for top earners
Currently, top earners get a 37-cent tax benefit for every dollar deducted. Starting in 2026, that drops to 35 cents.
What it means for you: If you are in the highest tax bracket, consider giving more this year for greater tax savings.
Change: State and Local Tax (SALT) deduction limit increases from $10,000 to $40,000
What it means for you: Beginning in 2025, taxpayers who itemize will be able to deduct up to $40,000 in state and local taxes. The cap will then rise by 1% each year through 2029 before reverting back to $10,000 in 2030. This increase may offer added relief for those in high-tax states and could influence how you plan your charitable giving and overall tax strategy in the years ahead.
Change: Higher standard deduction made permanent and will be indexed for inflation
For 2025, the deduction will be $15,750 for single filers and $31,500 for married couples filing jointly. If you are 65 or older, you may qualify for a bonus deduction of up to $6,000, although it begins to phase out at higher income levels.
What it means for you: Even if you don’t itemize, you may still benefit if you give appreciated stock, real estate, or, if you are 70½ or older, from your IRA.
Change: Deduction limit for cash gifts made permanent
What it means for you: You can still deduct cash gifts of up to 60% of your AGI. Consider a blended gift strategy that combines cash and non-cash assets to maximize your tax benefits as well as your impact.
Great Year-End Gift Ideas This Year (and Beyond)
Make an Immediate Difference
Support the Missouri Historical Society with a cash gift via check or online. Your gift may qualify for a federal income tax charitable deduction. Unsure of whether your gift is tax-deductible? Contact your financial advisor or tax consultant.
Important note: If sending by mail, your envelope must be postmarked by the U.S. Postal Service on or before Dec. 31 for your donation to qualify this year.
Use Appreciated Stock
Donating appreciated stock that you have owned for longer than one year allows you to qualify for an income tax deduction and eliminate any tax on the appreciation.
Important note: If the stock is electronically transferred to us, the gift date is the day the stock enters our account, not the date you ask your broker to make the transfer.
Recommend a Grant From Your Donor Advised Fund (DAF)
If you are ready to make an impact in 2025 with your DAF, consider recommending a grant (or recurring grants) to support MHS.
Important note: You qualify for an income tax deduction only when you contribute funds to an existing DAF. Through your grant recommendation, however, you get the satisfaction of making a difference at MHS before the year ends.
Make a Gift From Your IRA
If you are 70½ or older, you can give any amount up to $108,000 from your IRA directly to the Missouri Historical Society. You will not pay income taxes on the transfer. This gift can also count toward your required minimum distributions.
Important note: Your IRA administrator must transfer the funds by Dec. 31. If you have check-writing features on your IRA, your check must clear your account by Dec. 31 to count toward your required minimum distribution for the calendar year.
Receive Income For Life
Charitable gift annuity rates are currently the highest they have been in almost two decades—but that could change. Why not take advantage of the higher rates by creating a gift annuity before 2025 ends?
Important note: Begin the process early to ensure completion by year-end. Contact us today for assistance.
You Can End 2025 on a High Note
For guidance on the best ways to leave a legacy at the Missouri Historical Society as we approach the end of the year, reach out to Melissa M. Jones, CFRE at 314.746.4460 or mejones@mohistory.org. We are happy to help ensure that you realize the greatest benefit for your kindness.
4 Ways to Reduce Federal Income Tax Liability
Now is the time of year when taxpayers search for last-minute moves to reduce their federal income tax liability. Adding to the complexity this year is the One Big Beautiful Bill Act (OBBBA), which significantly changes various tax laws. Here are some of the measures you can take now to reduce your 2025 taxes in light of the OBBBA.
1. Reevaluate the standard deduction
Taxpayers can choose to itemize certain deductions or take the standard deduction based on their filing status. Itemizing deductions saves tax if the total exceeds the standard deduction. The number of taxpayers who itemize dropped dramatically after the Tax Cuts and Jobs Act (TCJA) nearly doubled the standard deduction. The OBBBA increases it further. The standard deduction for 2025 is:
$15,750 for single filers and married individuals filing separately,
$23,625 for heads of households, and
$31,500 for married couples filing jointly.
Taxpayers age 65 or older or blind are eligible for an additional standard deduction of $2,000 or, for joint filers, $1,600 per spouse age 65 or older or blind. (For taxpayers both 65 or older and blind, the additional deduction is doubled.)
But other OBBBA changes could make itemizing more beneficial. For example, if you’ve been claiming the standard deduction recently, the expanded state and local tax (SALT) deduction might cause your total itemized deductions to exceed your standard deduction for 2025. (See No. 2 below.) If it does, you might benefit from accelerating other itemized deductions into 2025. In addition to SALT, potential itemized deductions include:
Qualified medical and dental expenses (to the extent that they exceed 7.5% of your adjusted gross income),
Home mortgage interest (generally on up to $750,000 of home mortgage debt on a principal residence and a second residence),
Casualty losses (from a federally declared disaster), and
Charitable contributions (see No. 3 below).
Note, too, that higher earners will face a limit on their itemized deductions in 2026. The OBBBA effectively caps the value of itemized deductions for taxpayers in the highest tax bracket (37%) at 35 cents per dollar, compared with 37 cents per dollar this year. If you’re among that group, you may want to accelerate itemized deductions into 2025 to leverage the full value.
2. Maximize your SALT deduction
The OBBBA temporarily quadruples the so-called “SALT cap.” For 2025 through 2029, taxpayers who itemize can deduct up to $40,000 ($20,000 for separate filers), with 1% increases each subsequent year, meaning $40,400 in 2026 and so on. Deductible SALT expenses include property taxes (for homes, vehicles and boats) and either income tax or sales tax, but not both. The SALT cap is scheduled to return to the TCJA’s $10,000 cap ($5,000 for separate filers) beginning in 2030.
In the meantime, the temporary limit increase could substantially boost your tax savings, depending on your SALT expenses and your modified adjusted gross income (MAGI). The allowable deduction drops by 30% of the amount by which your MAGI exceeds a threshold of $500,000 ($250,000 for separate filers). When MAGI reaches $600,000 ($300,000 for separate filers), the $10,000 (or $5,000) cap applies.
If your 2025 SALT deductions exceed the old $10,000 cap but your total itemized deductions would still be under the standard deduction, “bunching” could help you make the most of the higher SALT cap. For example, if you receive your 2026 property tax bill before year end, you can pay it this year and deduct both your 2025 and 2026 property taxes in 2025. You might increase the deduction further by accelerating estimated state or local income tax payments into this year, if applicable. You could bunch other itemized deductions into 2025 as well. (See No. 1 above.)
In 2026, you’d go back to claiming the standard deduction. And then you’d repeat the bunching for the 2027 tax year and itemize that year.
3. Prepare for changes to charitable giving rules
Donating to charity is a valuable and flexible year-end tax planning tool. You can give as much or as little as you like. As long as the recipient is a qualified charity, you can properly substantiate the donation and you itemize, you’ll likely be able to claim a tax deduction. But beginning in 2026, the OBBBA imposes a 0.5% of adjusted gross income (AGI) “floor” on charitable contribution deductions.
The floor generally means that only charitable donations in excess of 0.5% of your AGI can be claimed as an itemized deduction. In other words, if your AGI for a tax year is $100,000, you can’t deduct the first $500 ($100,000 × 0.5%) of donations made that year.
So if you can afford it, you might want to bunch donations you’d normally make in 2026 into 2025 instead, so that you can avoid the new floor. (Bear in mind that a charitable deduction might nonetheless be more valuable next year if you’ll be in a higher tax bracket.)
One way to save even more taxes with your charitable donations is to give appreciated stock instead of cash. You can avoid the long-term capital gains tax you’d owe if you sold the stock and also claim a charitable deduction for the fair market value (FMV) of the shares.
On the other hand, if you don’t itemize, you may want to delay your 2025 charitable contributions until next year. Beginning in 2026, the OBBBA creates a permanent deduction for nonitemizers’ cash contributions, up to $1,000 for individuals and $2,000 for married couples filing jointly. Donations must be made to public charities, not foundations or donor-advised funds.
4. Manage your MAGI
MAGI is the trigger for certain additional taxes and the phaseouts of many tax breaks, including some of the newest deductions. For example, the OBBBA establishes a temporary “senior” deduction of $6,000 for taxpayers age 65 or older. This can be claimed in addition to either the standard deduction or itemized deductions. But the senior deduction begins to phase out when MAGI exceeds $75,000 ($150,000 for joint filers).
As discussed in No. 2, the enhanced SALT deduction is also subject to MAGI phaseouts. So, too, are the Child Tax Credit and the new temporary deductions for qualified tips, overtime pay and car loan interest. In terms of being a tax trigger, your MAGI plays a role in determining your liability for the 3.8% net investment income tax.
It can pay, therefore, to take steps to reduce your MAGI. For example, you might spread a Roth conversion over multiple years, rather than completing it in a single year. You can also max out your contributions to traditional retirement accounts and Health Savings Accounts.
If you’re age 70½ or older, qualified charitable distributions (QCDs) from your traditional IRA are another avenue for reducing your MAGI. While a charitable deduction can’t be claimed for QCDs, the amounts aren’t included in your MAGI and can be used to satisfy an IRA owner’s required minimum distribution (RMD), if applicable. This can be beneficial because charitable donation deductions (and other itemized deductions) don’t reduce MAGI and RMDs typically are included in MAGI.
Begin planning now
Don’t miss out on both new and traditional planning opportunities to reduce your 2025 taxes. The best strategies for you depend on your specific situation.
Why Should I Have a Will?
Lots of reasons! Watch our short video to learn what a will can do for you and your loved ones…and how to get started.
What Can A Will Do For You
Next Steps
Whether you’re creating your first will or updating an existing one, you can make an impact at the Missouri Historical Society after your lifetime by including a gift to us in your plans. We’re happy to discuss how you can create your legacy through your will. Contact us at 314.746.4460 or mejones@mohistory.org for a no-obligation discussion.
Contact Us
Information contained herein was accurate at the time of posting. The information on this website is not intended as legal or tax advice. For such advice, please consult an attorney or tax advisor. Figures cited in any examples are for illustrative purposes only. References to tax rates include federal taxes only and are subject to change. State law may further impact your individual results.
4 Reasons to Tell Us About Your Gift
There are four words everyone loves to hear: I have exciting news.
It’s a phrase that brings joy to the person sharing and the person listening. Exciting news is something best celebrated together!
You may be sitting on exciting news right now: your thoughtful choice to protect the people you love and the causes you care about in your will or estate plan.
Including the Missouri Historical Society in your estate plan is an impactful way to preserve your passion for our important work. If that’s your choice, please don’t keep it a secret. It’s beneficial to let us know.
Why tell us about your gift?
You can ensure your gift is used exactly as you intend.
You can choose to join other like-minded supporters in making an impact.
We can better plan for the future.
We can thank you for your kindness.
If you’re concerned about privacy, rest assured that your gift can remain anonymous. Also, if you’d like flexibility in your gift decisions, know that many estate gifts allow you to change your mind at any time.
We’re in this together. Your dedication makes you a critical partner in our important work. We would welcome an opportunity to discuss turning your dedication into your legacy.
You can start the conversation with four simple words: I have exciting news.
Let Us Know
Whether you make your impact at the Missouri Historical Society today or after your lifetime, your gift matters. Please get in touch with us at 314.746.4460 or mejones@mohistory.org to discuss your plans.
Tell Your Loved Ones About Your Legacy
If your estate plan is the “what” of your final wishes, the legacy letter is the “why.” Our FREE guide provides reflection questions to help you explain your estate decisions to your loved ones, especially if you included the Missouri Historical Society in your will or trust.
About the Missouri Historical Society
The Missouri Historical Society (MHS) is a nonprofit organization in St. Louis that preserves and shares the history of the city and state, and its counterpart, the State Historical Society of Missouri (SHSMO), collects and preserves materials documenting the history of the entire state. MHS operates three locations—the Missouri History Museum, the Library and Research Center, and the Soldiers Memorial Military Museum—while SHSMO serves as the state's most comprehensive repository of primary historical documents and boasts extensive collections of manuscripts, newspapers, photographs, and more.
Missouri Historical Society (MHS)
Mission: To make history meaningful and accessible, and to preserve the history of the St. Louis region.
Locations:
Missouri History Museum
Library and Research Center
Soldiers Memorial Military Museum
Founded: August 11, 1866, by civic leaders concerned with saving the history of St. Louis.
Collections: Houses one of the largest collections of artifacts and historical materials of any regional history institution in the U.S., including materials on local history, social movements, and more.