As the academic year begins, fall offers a natural moment to take stock of your financial picture before year-end deadlines. For alumni, the months between September and December present a planning window that is both strategic and personally meaningful, especially for those who care about supporting their alma mater and the educational causes that shaped their success.
Year-End Tax and Portfolio Review
Start with a full tax projection. This year’s income is coming into focus, and you still have time to fine-tune estimated payments, evaluate Roth conversions, and harvest portfolio losses, if applicable. A clear picture of your 2026 income sets the stage for smarter charitable decisions.
Charitable Giving in a Changed Landscape
The 2026 tax year brought meaningful changes to charitable giving rules. Itemizers now face a 0.5% AGI floor on charitable deductions, meaning the first half-percent of adjusted gross income in giving produces no deduction. For someone with $1 million in AGI, that is $5,000 of giving with no tax benefit. Taxpayers in the top 37% bracket also see their itemized deduction benefit capped at 35 cents on the dollar.
These changes make strategic giving more important, not less. Bunching multiple years of contributions into a single year through a donor-advised fund can help clear the AGI floor and maximize the deduction. Donating appreciated securities with a long-term holding period (greater than 1 year) rather than cash remains powerful: you may deduct the fair market value, subject to AGI limits and substantiation rules, while avoiding capital gains tax on the appreciation.
For alumni age 70½ or older, Qualified Charitable Distributions offer an especially efficient tool. Up to $111,000 per individual ($222,000 per married couple) can be transferred directly from an IRA to a qualified charity, satisfying required minimum distributions while excluding that amount from taxable income. For those who do not itemize, this may be the preferred way to make charitable contributions.
Supporting Your Alma Mater
Many of our most engaged alumni feel strongly about giving back to the institution that shaped their careers and lifelong friendships. Fall is an excellent time to structure those gifts thoughtfully. A donor-advised fund can simplify giving to the university, and appreciated stock can fund scholarships, faculty endowments, or program priorities that matter most to you.
It is important to distinguish between charitable gifts and payments that benefit a family member directly. Tuition payments made directly to an educational institution on behalf of a student are not charitable contributions, though they may qualify for the unlimited educational gift tax exclusion. Athletic seating benefits, tickets, and gifts earmarked for a specific relative do not carry the same deduction as unrestricted gifts to the university. Work with the alumni office to ensure your contribution is structured as a genuine charitable gift.
Estate and Gifting Updates
Under current law, the federal estate and gift tax exemption is set at $15 million per individual and $30 million per married couple for 2026, with inflation indexing beginning in 2027. Annual exclusion gifts of $19,000 per recipient remain a simple way to shift wealth to family. Fall is also a good time to review beneficiary designations and contribute to 529 plans. Naming the university as a beneficiary of a retirement account, life insurance policy, or donor-advised fund is another way to create a lasting legacy.
Next Steps
Meet with your financial advisor, tax professional, and estate attorney before December to align giving, gifting, and portfolio decisions. Further, reach out to the alumni office to discuss how your fall planning can support the programs and students that mean the most to you.
