Time Is Running Out:
Why 2025 Is the Year to
Maximize Your Charitable Giving
For high-income earners, time is now officially part of the tax equation. Thanks to the One Big Beautiful Bill Act (OBBBA), the rules for charitable giving will change dramatically starting in 2026. These adjustments will affect the way deductions are calculated and how much you can give tax-efficiently.
If you’ve been planning to make a large donation, establish a donor-advised fund (DAF), or gift appreciated assets, now may be the most advantageous time to act before deduction limits tighten and exemptions roll back.
Let’s explore what’s changing and what you can do now to stay ahead.
What the OBBBA Changes in 2026
Several key charitable giving rules are set to change starting in January 2026:
- Reduction in Deduction Value for Top Earners: The value of charitable contribution deductions is capped at 35% for those in the 37% federal tax bracket. This slight decrease means top earners have less tax incentive to give than under prior law, with the tax benefit for each dollar donated reduced from $0.37 to $0.35.1
- Above-the-Line Deduction for Non-Itemizers: Starting next year, individuals who do not itemize on their tax returns may deduct up to $1,000 in charitable gifts ($2,000 for joint filers) made directly to qualified public charities. This deduction does not apply to contributions made to Donor-Advised Funds (DAFs) or private non-operating foundations. This is intended to encourage broader participation in charitable giving, even for those who take the standard deduction.2
- Permanency of the 60% AGI Limit: Donors who make large cash gifts to public charities may continue to deduct up to 60% of their adjusted gross income (AGI), as this higher cap for cash contributions is now permanent. This flexibility benefits those looking to make significant, tax-efficient charitable gifts.3
- Continuation of Higher Standard Deduction: The standard deduction amount remains elevated (about $15,750 for individuals and $31,500 for couples in 2026), which, combined with above-the-line charitable deductions, provides modest incentives for non-itemizers to engage in direct charitable giving.4
- 0.5% AGI “Floor” for Itemized Charitable Deductions: For taxpayers who itemize, only those charitable contributions that exceed 0.5% of their AGI will be deductible. For example, a taxpayer with $200,000 AGI must contribute over $1,000 before deductions kick in. This provision effectively makes smaller, repeated donations less tax-efficient, incentivizing donors to “bunch” or bundle contributions into fewer, larger gifts to surpass the threshold.5
In short: the OBBA offers a mix of expanded access for smaller donors (mainly non-itemizers) while tightening the rules for higher-income and itemizing taxpayers through new floors and caps on deductions. Reviewing gifting plans now may yield significantly better tax outcomes before these new provisions begin.
Why High-Income Donors Should Act Now
For affluent households, 2025 represents a rare convergence of favorable conditions that won’t likely repeat soon. Acting now could lock in significant tax benefits and provide long-term flexibility for philanthropic goals. Here’s why:
- The “use it or lose it” exemption: If you don’t utilize the current elevated gift and estate tax exemptions before 2026, they simply disappear. Any future gifts will fall under the lower thresholds.
- Gifting while markets are strong:Donating appreciated assets like stocks or real estate can help you avoid capital gains tax on appreciation, while also providing a deduction for fair market value.
- Front-loading your giving: Setting up or funding a donor-advised fund in 2025 allows you to take the full deduction this year while giving over time. It’s one of the most flexible ways to make an immediate tax impact while maintaining control over future donations.6
- Estate planning advantages: Making large charitable or family gifts before 2026 can help reduce your taxable estate, maximizing wealth transfer under today’s more generous limits.
In other words, every dollar gifted this year may stretch farther – and save you more – than in future years.
If you’re considering a significant gift or legacy plan, don’t wait until next year’s tax season. Start the conversation now so you can give with purpose, strategy, and confidence – before the rules change.
What to Ask Your Advisor Before Year-End
As the laws change, it’s essential to coordinate your charitable strategy with your broader financial plan. Here are some smart questions to discuss with your advisor:
How can I maximize my charitable deduction before the 2026 changes take effect?
Your advisor can help evaluate whether it makes sense to bundle or front-load charitable contributions this year.
Should I gift cash, appreciated securities, or other assets?
Not all gifts are created equal. The right choice depends on your income, portfolio, and long-term giving goals.
How does my giving strategy fit with my overall wealth plan?
Charitable planning should complement, not compete with, your investment, retirement, and estate goals.
If you’re considering a significant gift or legacy plan, don’t wait until next year’s tax season. Start the conversation now so you can give with purpose, strategy, and confidence – before the rules change. Your advisor can help you evaluate your options and build a plan that maximizes both your impact and your savings.
The Bottom Line
The OBBBA is reshaping the giving landscape, and for high-income earners, the clock is ticking. Acting before the end of the year could help preserve today’s more generous tax treatment and create lasting impact for the causes you care about.
At Intrua Financial, your advisor has your best interests at heart, and likely already discussed how upcoming tax changes could affect your giving strategy. Still, as the OBBBA ushers in new rules, it’s worth revisiting your plan to ensure your charitable goals and tax strategy remain aligned.
If you have questions about how these changes may apply to you, or want to explore additional ways to give strategically, reach out to your advisor. We’re here to guide you through every transition with clarity and confidence.
1 https://www.joneswalker.com/en/insights/blogs/perspectives/2025-is-now-a-strategic-year-for-charitable-giving.html?id=102ku6j
2 https://www.fidelitycharitable.org/articles/obbb-tax-reform.html
3 https://www.rmc.edu/news/prepare-for-scheduled-tax-changes-how-the-one-big-beautiful-bill-act-affects-charitable-giving/
4 https://giftplanning.caltech.edu/obbb
5 https://bipartisanpolicy.org/explainer/the-one-big-beautiful-bill-acts-changes-to-charitable-deductions/https://bipartisanpolicy.org/explainer/the-one-big-beautiful-bill-acts-changes-to-charitable-deductions/
6 https://privatebank.jpmorgan.com/nam/en/insights/markets-and-investing/ideas-and-insights/should-new-tax-rules-change-how-and-when-you-donate