The One Big Beautiful Bill Act (OBBBA) redefines the tax landscape around charitable giving, creating both expanded opportunities and subtle new limits. As donors adjust their strategies, your outreach can provide valuable information and guidance that will help them make the most of their giving—all while keeping your mission top of mind.
Topics to Consider for the Remainder of 2025
The final quarter of the year usually centers on year-end giving or National Estate Planning Awareness Week (October 20–26). This year, however, the new legislation includes timely provisions that your donors should know about—including two new limitations on charitable deductions that will take effect in 2026:
1. Donors in the top 37% tax bracket will see deductions capped at 35%.
2. All donors will only be allowed to deduct gift amounts that surpass the new giving floor of 0.5% of adjusted gross income (AGI).
Your planned giving team may want to adjust your outreach to spotlight the following ways donors can maximize their deductions this giving season:
• Bunching donations. Some donors may want to bunch two or more years’ worth of giving into 2025 and claim a charitable deduction. This strategy may also appeal to donors who typically take the high standard deduction but want to make itemizing worthwhile this year.
• Donor-advised funds (DAFs). Donors can contribute a larger amount to a DAF in 2025, qualify for the full deduction, then make grants to your organization over time—essentially locking in today’s tax benefits while spreading out support as they normally would.
• Charitable trusts. Donors considering a charitable trust may want to create it in 2025 to qualify for the full deduction.
• New senior deduction. From 2025 to 2028, taxpayers age 65 or older can take an additional $6,000 above-the-line deduction (subject to income phaseouts). For some, this could free up additional funds to meet charitable goals.
In general, donors concerned about the impact of the new limits on charitable deductions may want to accelerate giving into 2025 or strategically consider the best way to approach multiyear gifts.
Example: A couple in the 37% tax bracket with $850,000 in AGI donates $85,000 in 2025. Their deduction saves them $31,450 in taxes. However, if they wait until 2026, the combined impact of the 0.5%-of-AGI floor and the 35% deduction cap reduces their tax savings to $28,263—a loss of $3,187.
Topics to Consider for 2026
Even with deduction limits in place, donors will still be motivated to make meaningful gifts. In the coming year, your outreach can focus on options that remain advantageous under the new rules:
• Gifts from an IRA. IRA owners age 70½ and older should continue to consider donating directly from their IRAs with qualified charitable distributions (QCDs). These gifts bypass the new deduction limitations, count toward the donor’s required minimum distribution (if one is due), and are excluded from taxable income. For some, this may help preserve eligibility for the new senior deduction.
• Appreciated assets. Gifts of appreciated stock or real estate will continue to offer powerful double tax benefits—no capital gains tax, plus a deduction for the full fair market value. Even though the deduction will be limited, bypassing the capital gains tax may make up for it.
• Legacy gifts. Bequests and beneficiary designations may feel more advantageous to donors simply because they aren’t impacted by the new limits on deductions and allow donors to support their favorite causes without giving up any of their current income.
• Grants from DAFs. Donors who funded DAFs before 2026 may need a reminder to actually recommend grants to your organization from the assets they’ve already set aside for charitable giving.
• New deduction for nonitemizers. For those who aren’t giving enough to make itemizing worthwhile (or to surpass the new giving floor), it will be useful to include reminders that they can deduct up to $1,000 for cash contributions to qualified charities such as yours (excluding donor-advised funds).
A Final Word
As you plan communications for the rest of 2025 and into 2026, keep donor concerns about tax efficiency front and center. This is a prime opportunity to:
• Highlight ways donors can act now to capture full benefits before the rules change.
• Show how your organization will continue to offer meaningful giving opportunities, even under new limitations.
You can position charitable giving as both a smart financial choice and a powerful way to create lasting impact—no matter how the rules shift.
