At De Leon Tax Services, we are more than a tax preparation business. We are a family. We are also part of the community we serve.

As a Latino-owned and family-run business with Mexican roots, we know firsthand the sacrifices immigrant families make. We understand the resilience it takes to build a life in a new country. We also recognize the fear and uncertainty many people are experiencing right now. Across our communities, increased immigration enforcement and deportations are affecting families every day. These realities are not abstract to us. They are personal. They reflect the experiences of our own family, our clients, and our neighbors.

Because of this, we have spent a great deal of time reflecting and having difficult but necessary conversations. This reflection has led us to ask ourselves an important question:

How can we help in a real and tangible way?

We didn’t want to offer only a statement of support or our condolences. We wanted to take action in a meaningful and impactful way. We wanted to move beyond words and toward something tangible. We wanted to do something that could lift some of the burden off people’s shoulders. That is why we are introducing community support options. These options are specifically designed to assist undocumented individuals and families facing deportation or immigration-related hardships. This includes individuals or their partners who are dealing with detention or deportation. It includes people who are now supporting their families after suddenly losing a primary source of income. It includes students whose family stability has been disrupted because an immediate family member was detained or deported. It also includes individuals who feel afraid to seek traditional assistance because of their immigration status.

Free Consultations for Undocumented Community Members

If you are undocumented and have questions about filing taxes, applying for or renewing an ITIN, or understanding your options, we offer free confidential consultations. This is a safe space to:

• Ask questions

• Learn what documents you may need

• Understand your tax filing options

• Get clear, honest guidance

No obligation. No pressure. Just information and support.

Fee Waivers & Reduced Rates for Families Affected by Deportation

For families experiencing financial hardship due to detention or deportation, we offer:

• Full or partial fee waivers

• Reduced service rates

We understand that losing a household income can be devastating. Our goal is to remove financial barriers so families can still access essential tax and compliance services.

Zero-Interest Payment Plans

We also provide 0% interest payment plans for qualifying clients, allowing you to pay over time without additional financial burden.

We Proudly Serve ITIN Filers

You do not need a Social Security Number to file taxes. We assist with:

• ITIN applications (Form W-7)

• ITIN renewals

• ITIN-based tax returns

Filing taxes using an ITIN is legal, confidential, and can help demonstrate tax compliance and good moral character.

Your Privacy Is Protected

Federal law strictly protects your tax information. De Leon Tax Services follows all IRS confidentiality rules and does not share client information with immigration enforcement.

We do not ask about immigration status.

We only ask whether you have a Social Security Number or an ITIN.

Our Commitment

We believe everyone deserves access to respectful, affordable, and confidential tax services, regardless of immigration status.

Our parents, grandparents, and community paved the way for us. Supporting our community is not charity. It is a responsibility.

If you or someone you know needs help, please reach out.

Help Support This Community Work

If you are a current client and are able to help support this work, you may choose to add $5–$20+ to your invoice to help cover the cost of discounted and waived services for undocumented community members. Just let us know you’re interested when finalizing your return.

If you are not a client and would still like to support this effort, you can contribute to our community support fund, which helps cover fees for families in need.

The De Leon Tax Services Community Support Fund is an internal company assistance program. Contributions are not tax-deductible and are not charitable donations.

Thank you for helping us care for our community.

At De Leon Tax Services, we believe strong communities are built through collaboration, shared values, and a deep commitment to cultural preservation. That’s why we are proud to share the recent announcement of a formal partnership between Mariachi Los Claveles and Folklorico Latino de Woodland—two respected nonprofit organizations dedicated to preserving and promoting Mexican music and dance traditions.

Through a newly signed Memorandum of Understanding (MOU), these organizations have committed to working together to expand cultural arts programming, increase opportunities for youth, and strengthen community engagement across Woodland and the greater Sacramento region. This partnership represents more than a joint agreement—it reflects a shared mission to honor heritage while building sustainable futures for community-based arts organizations.

Our Role in Supporting Nonprofit Partnerships

De Leon Tax Services was honored to support this collaboration by providing nonprofit consulting and guidance throughout the process. From helping structure the agreement to ensuring organizational clarity and alignment, our goal was to help both organizations move forward with confidence, transparency, and mutual respect.

We understand that nonprofit partnerships require more than goodwill—they require thoughtful planning, clear governance, and compliance with best practices. When those elements are in place, organizations are better positioned to focus on what matters most: their mission and the communities they serve.

More Than Tax Services

While many know De Leon Tax Services for tax preparation and bookkeeping, we also proudly offer nonprofit consulting services. Our work includes supporting nonprofits with governance, compliance, strategic partnerships, documentation, and long-term sustainability planning. We are committed to helping mission-driven organizations build strong foundations so their work can continue to grow and thrive.

We congratulate Mariachi Los Claveles and Folklorico Latino de Woodland on this meaningful collaboration and look forward to seeing the positive impact it will have on our community.

Contributing to retirement accounts such as 401(k)s and IRAs can reduce taxable income.

• For 2025, the 401(k) contribution limit is $23,500, with an additional $7,500 catch-up contribution for those aged 50 and older.

• The IRA contribution limit remains $7,000, with a $1,000 catch-up contribution for eligible individuals.

2. Take Advantage of Energy Efficiency Credits

Homeowners can claim up to $3,200 annually in tax credits for energy-efficient home improvements:

• Up to $1,200 for home envelope upgrades (windows, doors, insulation).

• Up to $2,000 for installing heat pumps or biomass stoves.

Starting in 2025, qualifying items must be produced by a certified manufacturer, and taxpayers must report the product’s PIN on their tax return.

3. Harvest Tax Losses

Offset capital gains by selling underperforming investments to realize losses. This tax-loss harvesting strategy can reduce taxable income by up to $3,000 annually for individuals, or $1,500 for married individuals filing separately.

4. Review Charitable Contributions

Donations to qualified charities may be deductible if you itemize. To qualify:

• Contributions must be made by December 31.

• Keep receipts or acknowledgment letters for donations over $250.

• Non-cash donations (clothing, household items) must be in good condition.

5. Check Withholding and Estimated Taxes

Avoid underpayment penalties by ensuring enough tax is withheld or estimated payments are made. Use the IRS Tax Withholding Estimator to review your situation. The fourth-quarter estimated tax payment deadline is January 15, 2026.

6. Utilize Flexible Spending Accounts (FSAs)

Most FSAs have a “use-it-or-lose-it” rule, meaning unused funds may be forfeited. For 2025:

• The maximum FSA contribution is $3,300.

• Employers may allow up to $660 to carry over.

7. Plan for Required Minimum Distributions (RMDs)

Individuals aged 73 or older must take RMDs from traditional IRAs and 401(k)s by December 31 to avoid a 25% excise tax on the amount not withdrawn.

The first RMD can be delayed until April 1 of the following year, but this will require taking two RMDs in one year, which could increase your taxable.

8. Claim Education Tax Benefits

Taxpayers paying for higher education expenses may qualify for:

• American Opportunity Tax Credit (AOTC)

• Lifetime Learning Credit (LLC)

Make sure to receive Form 1098-T from your educational institution to claim these credits.

9. Prepare for Digital Asset Reporting

Income from digital assets (such as cryptocurrency) must be reported. Gather records of all transactions, including purchases, sales, and exchanges, to ensure accurate reporting.

10. Review Filing Status and Life Changes

Major life events, such as marriage, divorce, or the birth of a child, can impact your filing status and eligibility for certain credits. Update your information with the IRS and Social Security Administration if needed.

Final Thoughts

Year-end tax planning is about more than just filing. It’s about making smart financial moves to reduce your tax bill and prepare for the future. Acting now can save money, reduce stress, and help you start 2026 on solid financial ground.

At De Leon Tax Services, we’re here to help you take advantage of every deduction and credit available. Book your year-end tax planning appointment today, and let’s get ahead before the year closes.

📞 Contact us to schedule your session before December 31, 2025.

Sources

1. IRS: 401(k) limit increases to $23,500 for 2025, IRA limit remains $7,000

2. IRS: Energy Efficient Home Improvement Credit

3. IRS Publication 17: Your Federal Income Tax

4. IRS Publication 526: Charitable Contributions

5. IRS Tax Withholding Estimator

6. IRS Publication 505: Tax Withholding and Estimated Tax

7. IRS Publication 15-B: Employer’s Tax Guide to Fringe Benefits

8. IRS: Required Minimum Distributions (RMDs)

9. IRS Publication 970: Tax Benefits for Education

10. IRS: Get Ready to File Your Taxes

11. IRS: Essential Tax Tips for Marriage Status Changes

What Is an Endowment?

An endowment is a pool of financial assets, usually a charitable gift, that a nonprofit invests to generate long-term income. The original donation, referred to as the principal, is typically preserved, while investment earnings support the organization’s mission. Over time, the endowment grows, balancing income distribution with asset preservation to maintain generational equity.

According to the Legal Information Institute, an endowment is “a donation of money or property to a nonprofit organization, which uses the resulting investment income for a specific purpose” (Cornell Law). These funds can support general operations, scholarships, staff positions, or special initiatives, depending on the donor’s intent.

Why Now?

We are in the midst of what economists are calling the greatest wealth transfer in history. By 2045, Americans are expected to pass down $84 trillion in assets, up to $12 trillion of which may go to nonprofits. But this windfall will not be distributed equally. Only organizations with the foresight and structure to receive these gifts will benefit.

At the same time, nonprofits are facing increasing volatility: cuts to public funding, changing donor expectations, inflationary pressure, and market disruptions. A well-managed endowment provides stability, credibility, and the flexibility to pursue bold initiatives without relying entirely on annual fundraising or grant cycles.

The Benefits of Endowment

For nonprofits, endowments offer long-term financial resilience. Even a modest fund can produce predictable annual income and send a signal of professionalism and permanence to donors and funders. An endowment can support key programs, attract planned gifts, and serve as a hedge against inflation or unexpected financial downturns.

For donors, contributing to an endowment represents an opportunity to leave a lasting legacy and ensure their values endure. It aligns with the growing interest in planned giving and impact-driven philanthropy.

As Laura MacDonald explains in The Endowment Handbook, “An endowment of $1 million that provides $45,000 annually can over time return the full philanthropic investment while continuing to fuel a program forever” (MacDonald, 2024).

Not So Fast: Is Your Organization Ready?

An endowment isn’t a quick fix or a guaranteed revenue stream. Without a clear foundation, it can become a source of confusion or even financial risk.

Before launching an endowment, organizations should assess their readiness in three key areas:

• Governance: Are your board members aligned and prepared to oversee long-term financial strategies? Do you have policies for investment, gift acceptance, and spending?

• Leadership: Is your leadership team stable and strategic? Are they prepared to communicate the value of endowment to donors?

• Fundraising Infrastructure: Do you have strong donor relationships, a compelling case for support, and the ability to steward legacy gifts?

The Endowment Readiness Test (MacDonald, 2024) provides a helpful benchmark. A score of 70 or above is typically needed to launch a successful endowment campaign. If your organization falls below this threshold, it may be wise to start with strategic reserves or donor-advised funds as you build capacity.

Endowment vs. Reserves: Know the Difference

It’s important to distinguish between endowments and reserves. While both provide financial resilience, they serve different purposes:

• Endowments are permanent and invested for perpetual return. They require legal documentation and often carry donor restrictions.

• Reserves are flexible and typically unrestricted. They provide liquidity for operating shortfalls or strategic opportunities and are often a first step before creating a formal endowment.

Examples of Endowments in Action

Endowments are not reserved for elite universities. Local organizations, community foundations, regional theaters, food banks, and even small scholarship funds are using endowments to stabilize funding and plan for the future.

For example, the Community Foundation for Monterey County helps manage endowment funds for dozens of local nonprofits. Similarly, institutions like Howard University and Morehouse College are growing their endowments to support scholarships, capital projects, and community programs.

Final Thoughts

Endowments are more than financial tools; they are commitments to the long-term success of your mission. They require foresight, discipline, and a shift from a survival mindset to one of abundance and stewardship.

If your organization is considering whether now is the right time to pursue an endowment, we would like to encourage you to start by evaluating your readiness. At De Leon Tax Services, we help nonprofits of all sizes prepare the structural foundation needed to support and grow endowed funds. From policy development to compliance and planning, we’re here to help.

Ready to get started? Contact us for a consultation.

Sources

• Cornell Law School Legal Information Institute. “Endowment.” https://www.law.cornell.edu/wex/endowment

• BYU Financial Services. “Endowment Type Definitions.” https://finserve.byu.edu/endowments-gifts/endowment-type-definitions

• MacDonald, Laura. The Endowment Handbook. John Wiley & Sons, 2024.

• National Council of Nonprofits. “Gift Acceptance Policies.” https://www.councilofnonprofits.org/running-nonprofit/fundraising-and-resource-development/gift-acceptance-policies

• Association of Governing Boards. “Endowment Management for Foundations and Nonprofits.” https://agb.org

• Giving USA. Leaving a Legacy: A New Look at Planned Giving Donors. 2019.