New Tax Rules & Year-End Giving
Smart ways to give before 2025 ends
Consider Tax Law Changes When You Donate
At Second Harvest Food Bank Santa Cruz County, we’re grateful to be your local hunger-relief partner, helping ensure your year-end giving directly supports families right here in our community.
This year, updates to new tax provisions may influence your decisions on your year-end giving and your goals for 2026 and beyond. Signed into law on July 4, 2025, the “One Big Beautiful Bill Act” (OBBB or H.R.1) contains important considerations for donors when these new tax rules take effect.
With new deduction limits beginning in 2026—and updated state and local tax (SALT) rules starting in 2025—this November and December may be your last chance to maximize charitable tax benefits under current rules.
“Hunger is something that no family, no individual, should ever confront. We are proud to be a small part of Second Harvest’s work to help with one of the most basic needs a person can have. We are grateful for this opportunity!”
– Shelly and Marty Hernandez, local donors and advocates
Three Tips for Year-End Giving
If you’d like to make the most of current tax advantages while supporting local hunger relief, here are three effective strategies.
1. Bunch multiple years’ gifts into a Donor-Advised Fund. “Bunch” your 2026 giving to Second Harvest Food Bank Santa Cruz County with 2025 contributions before year-end to pre-fund several years of giving while deductions are still at 37% and before the 0.5% “floor” goes into effect. You’ll get the full tax deduction now, while spreading out grants to your favorite charities over time, and benefiting from the larger standard deduction in those later years. When you donate appreciated securities to Second Harvest, you can reduce taxes while helping provide healthy food for families across Santa Cruz County. Learn more about Donor-Advised Funds
2. Consider a gift of appreciated stock or mutual funds. If you have stocks or other publicly traded securities that are worth more than what you paid for them, donating these to Second Harvest Food Bank Santa Cruz County at the end of the year removes your tax liability from the stock sale and can increase your giving power to Second Harvest by up to 30% compared to selling the stock and giving cash. This strategy also offers a chance to rebalance your portfolio. By contributing appreciated or concentrated holdings—like stock from a longtime employer—you can turn personal investments into community impact while optimizing your portfolio’s health. Stock transfer timelines can vary by provider but must be received by December 31 for the 2025 tax year. Second Harvest Food Bank Santa Cruz County can accept marketable securities of any kind. We recommend initiating year-end by December 20. Learn more about how to transfer stocks or mutual funds to Second Harvest
3. Use your required IRA distribution for giving, skip the taxes. If you are age 70½ or older, you can transfer up to $108,000 tax-free from your traditional Individual Retirement Account (IRA) directly to a charity. If you are 73 or older, the tax-free transfer counts towards your Required Minimum Distribution (RMD). While you can’t fund your DAF with a QCD, these tax-free rollovers can benefit Second Harvest Food Bank Santa Cruz County’s grantmaking funds. Please initiate your IRA gift by December 15th. Learn more about Qualified Charitable Distributions from your IRA
We’re your partner in giving. At Second Harvest Food Bank Santa Cruz County, we’re here to help you make the most of your charitable goals, so your generosity has the greatest possible impact on hunger relief in Santa Cruz County. We’re always happy to support your planning.
This article is provided for informational purposes only and is not intended as legal, accounting, or financial planning advice. Please consult your tax advisors about your specific situation; we’re happy to partner with them.
Second Harvest Food Bank is a 501(c)(3) tax-exempt organization.
Our tax ID number is 77-0326685.
Our tax ID number is 77-0326685.