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Did you know that gifting appreciated stock or other long-term assets can be one of the most tax-efficient ways to give?

 
When you give appreciated assets—such as publicly traded stock, restricted stock, or private business interests—you can avoid capital gains taxes (typically 15–20%) and receive a charitable deduction for the fair market value.

That means your gift can go farther to support the causes you love while saving you money at tax time. Learn more about how Kitsap Community Foundation can help facilitate your stock gift.

Because tax laws change significantly on January 1, 2026, there’s a great incentive to make charitable contributions in 2025 before their value drops.  You can make a tax-deductible contribution to a donor-advised fund before December 31, receive the immediate deduction, then recommend grants to your favorite nonprofits during 2026 and beyond. Donor-advised funds can be used to make gala or event gifts, respond to annual appeals, or contribute to capital projects for your favorite causes. 

Local community foundations—including Kitsap Community Foundation—can set up DAFs efficiently and at no cost. Depending on the size of the new fund, assets may continue to be managed by the donor’s existing financial advisor while benefiting from the administrative and charitable support of the Foundation. 

If you already have a DAF—wherever it’s held—you can recommend a grant to Kitsap Community Foundation to support all nonprofits in Kitsap and North Mason Counties. If you’d like to open your own DAF, we can help you get started before year-end.

If you’re age 70½ or older, you can gift up to $108,000 per year directly from your IRA to qualified charities through a QCD. This strategy satisfies your Required Minimum Distribution (RMD) and reduces your taxable income—while making a meaningful difference locally.

Keeping income lower protects many other tax benefits. This matters for high income (e.g. AMT exemption), low income (e.g. Social Security benefit tax reduction), and special circumstances (e.g. medical expenses deductions.) Keeping your income lower even helps keep your Medicare Part B premiums lower.  

To ensure your 2025 QCD counts this year, contact your IRA custodian by the end of November so your gift arrives before December 31. 

If your investments have lost value this year, you can sell those assets, realize a capital loss to offset gains, and then gift the cash proceeds. This approach—called tax-loss harvesting—can help reduce your taxable income while supporting the causes you care about.

Gifting appreciated assets creates TWO tax benefits. The tax deduction is the same size as a cash gift (the asset must have been owned for a year or more). PLUS, you avoid paying capital gains tax. 

With a charitable swap, instead of giving cash, you give appreciated stock. Then use cash to buy the same stocks again. Your portfolio doesn’t change, but the capital gain disappears. (The newly purchased shares have no gain. And there’s no waiting period because this is no-loss property, so the “wash sale” rule doesn’t apply.)

​When you’re rebalancing your investment portfolio, consider gifting some appreciated assets and selling others. The charitable deduction for the gifted portion can help offset the capital gains tax from the sale, creating a smart, balanced way to give.

You can gift your home, vacation property, or farm while continuing to use it during your lifetime. This type of gift provides a charitable deduction now and ensures your chosen charity receives the property in the future.

Note: gifts of real estate require appraisals and additional processing time, so start early.

In a bargain sale, you sell real estate or securities to a charity for less than their market value. The difference between the fair market value and the sale price becomes a charitable gift—eligible for a deduction and partially exempt from capital gains tax.

Many people like to include a charitable gift in their will to support a cause that’s been important in their lives. One tax-smart strategy is to leave part of an IRA, 401(k), or 403(b) account to a nonprofit. (It’s easy to change beneficiaries online).

Why is this smart? Because heirs pay income taxes on this money, but charities don’t. So, if you’re leaving anything to a nonprofit, use these accounts first.

Itemized charitable deductions will be worth less in 2026.  You’ll lose the deductions below 0.5% of income (AGI). And, if you’re in the 37% tax bracket, they’ll count at only 35%, not 37%. Neither of these penalties apply in 2025. 

If you’ve got flexibility, pulling charitable gifts into 2025 may make more sense. As always, consult your tax advisor for guidance about your specific situation.

One of the most meaningful gifts you can give your loved ones this season is peace of mind. A completed will ensures your wishes are honored and your family is cared for—while allowing you to leave a lasting legacy for the causes you cherish.

A will provides:

•    Peace of mind for you and your family
•    Protection for children and pets
•    Clarity to prevent family conflict
•    Tax efficiency for your estate
•    A lasting legacy through charitable gifts

You can create your legal will—for free—through our partner at FreeWill.com, a gift to you and your family from Kitsap Community Foundation.

As the year comes to a close, take a few minutes to review your beneficiary designations on IRAs, 401(k)s, 403(b)s, life insurance policies, bank accounts, and other assets.

Making sure your documents reflect your current wishes is one of the simplest—and most important—steps you can take for your loved ones and favorite causes. Too often, people update their wills but forget to update their beneficiary designations, which take legal precedence over what’s written in a will.

Before year-end, double-check to ensure your intentions are clear and consistent across all accounts. It’s a small step that can make a big difference for the people and organizations you care about most.