U.S. Tax Changes, End of Year and Festive Giving: How Thoughtful Structuring Can Help

With end of the year and the season of giving fast approaching many donors – and their advisors – feel the familiar pressure of last-minute charitable giving. But it doesn’t have to be that way.

Charitable giving can deliver real tax opportunities for clients but timing matters. Donor Advised Funds facilitate this strategic approach.

Strategic philanthropy has an important place in this process which benefits the clients, advisors and charities.

 Having conversations now about philanthropic giving can help advisors to better understand client values and motivations for giving and explore the best structuring options. For clients it's a chance to think more deeply about how and where they want to give.

Your Role as a trusted advisor - Going beyond tax to values

Charitable giving isn’t just a financial transaction – it’s often a deeply personal one. Wealth managers, tax advisors and lawyers are uniquely placed to guide clients through the giving vehicles available to them, offering solutions that are not only tax-savvy but also align with their client’s longer term goals.

Important Tax Changes in U.S.

An important consideration for U.S. donors is how new tax changes that may come into effect on 1^st January 2026 will effect donors charitable giving strategy.

In some cases, taxpayers may wish to accelerate giving by 31 December 2025.

This applies to individuals who are dual U.S./U.K. taxpayers and can benefit from tax relief in both jurisdictions. This can be efficiently facilitated through a dual qualifying giving structure like a Donor Advised Fund.

Use Tax-Effective Structures that add flexibility - Donor Advised Funds and Dual Qualified Giving

At this time of year clients may not know exactly how they want to give, but they know that they want to give. A DAF allows them to:

·         Secure tax relief in the current year

·         Take time to decide which charities to support

·         Consolidate their giving and invest their charitable funds – allowing them to give even more

For U.K. taxpayers, the 31^st January is the final deadline for benefiting from charitable gifts against last year’s income (provided self-assessment forms are yet to be filed).

For U.K./ U.S. taxpayers, dual qualified services add another layer of efficiency. With the U.S. December deadline looming, it allows clients to make a single donation that qualifies for relief in both jurisdictions – ideal for international families, relocating executives or U.S. nationals based in the U.K.

Flexibility of Donor Advised Funds

Choosing a Donor Advised Fund has other benefits for clients too. They are incredibly flexible and work especially well for clients with complex giving arrangements as they can accept shares, cryptocurrency, property and other legacy items such as art work. Allowing donors to have more impact in the areas they care most about by thinking strategically about when and where to donate.

Global Giving and Strategic Timing

- Giving across borders with confidence

More philanthropists today support global causes – from conservation in Africa to education in India. But international giving comes with complexity. Donors may worry about speed, security, or whether they’ll receive tax relief.

Prism removes those barriers. With our extensive expertise in due diligence and compliance, we offer wealth managers and their clients a secure, tax-efficient way to make international donations.

Importantly, donors can give before tax deadlines while deciding where to grant later or recommend international grants at any time from their Donor Advised Fund.

Timing matters. Whether your client wants to make a one-off donation, transfer appreciated assets or lay the groundwork for a multi-year giving plan, Prism provides the infrastructure to do so efficiently, and in line with their overall financial strategy.

Prism the Gift Fund is an award-winning charity on a mission is to increase the flow of charitable funds into the sector. Increasingly complex rules and regulations present challenges for donors. This year it celebrated its 20^th anniversary and secured over $1 billion in donations for good causes.

Prism provides bespoke and a straightforward solution to making tax-effective gifts into the U.K. and globally, leaving donors with the joy of giving, without the administrative burden. They work in partnership with intermediaries in the wealth sector to increase knowledge about Donor Advised Funds and their unique Collective Funds. Visit their website for more information www.prismthegiftfund or contact Elena Camilla Myers, elena@prismthegiftfund.co.uk