Smart Charitable Giving – Time is of the Essence

As year-end approaches, many clients focus on charitable giving—supporting causes they care about while optimizing their tax strategy. This year carries added urgency: the One Big Beautiful Bill Act (OBBBA) will significantly change charitable giving rules in 2026. For high-income donors, 2025 may be the last opportunity to maximize benefits under current rules. 

What the One Big Beautiful Bill Act Means for Your Giving 

Starting in 2026, major changes take effect: 

Universal Deduction for Non-Itemizers
Non-itemizers can deduct up to $1,000 ($2,000 for married couples)—creating new benefits for everyday donors.

New Floor for Itemizers
Only gifts above 0.5% of AGI will be deductible, potentially eliminating benefits for smaller donations.

Reduced Benefit for High Earners

Top bracket deduction value drops from 37% to 35%.

Corporate Giving Requirements
Businesses must donate at least 1% of taxable income before deductions apply.

Bottom line: 
Everyday donors gain opportunities in 2026, but high-income taxpayers should act now to maximize 2025 benefits. 

Current Tax Benefits Available Through 2025 

Cash Gifts to Public Charities 
Deduct up to 60% of your adjusted gross income (AGI) for cash donations to qualified public charities. 

Qualified Charitable Distributions (QCDs) 
If you're 70.5 or older, transfer up to $105,000 directly from your IRA to qualified charities. QCDs count toward your required minimum distribution but aren't included in taxable income. This is ideal if you don't need the RMD for living expenses. 

Consider Making a Donation of Appreciated Assets 
Donate stocks, bonds, or mutual funds held over one year directly to charities. You receive a deduction for full fair market value while avoiding capital gains tax.  

Consider "Bunching" with a Donor-Advised Fund 
PRO TIP: Accelerate multiple years of giving into 2025. Contribute a larger amount to a donor-advised fund now, receive the immediate tax deduction under current rules, then recommend grants to charities over several years. This locks in today's generous deduction limits before the new floor takes effect. 

The Personal Side of Giving 

The most meaningful charitable giving aligns with your values and creates the impact you want to see. Whether supporting education, healthcare, the arts, or environmental causes, your giving should reflect what matters most to your family. Tax benefits support your legacy—they don't define it. 

Ask us to review your charitable giving strategy before December 31st.

We'll assess your situation, identify optimal strategies, and help you navigate the transition to 2026's new landscape—maximizing both your impact and tax efficiency.  Contact us to schedule your year-end giving consultation

Please note: This summary is for informational purposes only and does not constitute tax or legal advice. Individual outcomes may vary. We recommend consulting with tax, legal, and other advisors before making any decisions. If you don’t already have these professionals in your network, please let us know as we work with many on a regular basis.