While many people tend to concentrate their charitable giving during the last few months of the calendar year, there are reasons for some clients to prioritize giving early this year. The new federal tax law enacted in July 2025, often referred to by its acronym OBBBA, takes effect this year and creates new thresholds and limits for the tax deductibility of charitable gifts for taxpayers who itemize deductions and a new opportunity for those who do not itemize. In addition, a third consecutive year of double-digit global stock market returns has multiplied unrealized gains on some large holdings in client portfolios, which presents an opportunity to gift highly appreciated shares to donor advised funds or directly to charities. Meanwhile, major cuts to federal safety-net and social-welfare programs, along with aggressive actions by federal immigration enforcement agents, have harmed vulnerable and disadvantaged communities across the country and strained the ability of frontline social-service organizations to meet the needs of these communities, making giving generously even more timely. By frontloading your 2026 charitable giving, you can maximize your immediate social impact while significantly optimizing your tax efficiency.

A 529 plan, also called a Qualified Tuition Program, is a tax-advantaged investment vehicle designed to encourage saving for the education expenses of a designated beneficiary (a minor or adult student). The funds can be used for qualified education expenses at all forms of college, as well as trade schools and K–12 private school tuition, and even apprenticeship programs. Parents and grandparents often establish these accounts to start saving early for offspring and enjoy compounding investment gains to pay for the hefty education bills anticipated. As with many investment vehicles, these plans favor clients with financial security who can set aside money for future needs and can withstand the volatility and risk of participating in investment markets.