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Making the Most of 2025: Charitable Giving Strategies Under the New Tax Rules

Navigating charitable giving has never been simple, especially when tax laws are in constant motion. Now, in 2025, the challenge has become even more complex—and potentially more rewarding—thanks to the One Big Beautiful Bill Act (OBBBA), signed into law on July 4. This sweeping legislation has redefined how much a client can deduct for charitable contributions, and, in some cases, who can benefit from those deductions at all.

If your clients have been reading the financial press, they may have caught a recent Wall Street Journal article highlighting these new tax planning themes. What they might not realize is how the changes apply to their specific situation—or how a thoughtful plan can make 2025 a particularly strategic year for giving.

Here are three key planning considerations to keep top of mind in conversations with philanthropic clients this year.

1. Consider whether “bunching” charitable contributions makes sense in 2025

One of the most talked-about provisions of the OBBBA is the expansion of the standard deduction: $15,750 for single filers and $31,500 for married couples filing jointly in 2025, with even higher thresholds for taxpayers over 65.

For many clients, this increase will make it harder to reach the level of itemized deductions needed to exceed the standard deduction. That’s where “bunching” comes in—a technique that consolidates multiple years of charitable giving into a single tax year to maximize deductions.

Here’s how it works: imagine a client who donates $12,000 each year to charity. On its own, that gift doesn’t push them past the new standard deduction. But by contributing $36,000 (three years’ worth) to a donor-advised fund (DAF) at the community foundation in 2025, and combining that amount with other deductible expenses, they may be able to itemize that year and claim a significantly larger deduction. The donor can then recommend grants from their DAF to their favorite charities over the next two years while taking the standard deduction in those years.

This approach isn’t new, but it’s more relevant than ever. And with the OBBBA also adjusting state and local tax (SALT) deduction allowances, the number of itemizers may grow—though clients should be mindful of the higher bar set by the increased standard deduction.

2. Look ahead to 2026 when planning for 2025 gifts

While 2025 offers opportunities, the horizon is already shifting again. In 2026, the OBBBA will introduce new restrictions: only charitable donations exceeding 0.5% of a taxpayer’s adjusted gross income (AGI) will be deductible.

For example, a couple with an AGI of $225,000 would see the first $1,125 of their charitable giving excluded from deductions. For large-scale donors, this reduction may be relatively minor. But for clients making moderate or smaller annual gifts, the change could noticeably reduce the tax benefit of their philanthropy.

Another notable shift in 2026: the maximum tax benefit from charitable deductions for high-income taxpayers will be calculated at a top marginal rate of 35%, down from 37%. While that may sound small, it can add up for clients who give substantial amounts each year.

Taken together, these changes may encourage many higher-income clients to “front-load” gifts in 2025, using bunching strategies or other planning tools to secure today’s more favorable rules before the new limitations take effect.

3. Watch the fine print on the charitable deduction for non-itemizers

Not every client itemizes deductions—and starting in 2026, non-itemizers will see a modest but meaningful opportunity. The OBBBA introduces a direct charitable deduction for taxpayers who claim the standard deduction: up to $1,000 for single filers and $2,000 for married couples filing jointly.

This provision is reminiscent of the temporary deduction offered during the COVID-19 pandemic. There’s a catch, though: it applies only to cash gifts made directly to qualified charities. Donations of property or stock, or contributions to donor-advised funds, do not qualify.

For the estimated 100 million Americans who don’t itemize, this change is still welcome news. But for clients used to giving appreciated stock or using a DAF for flexibility and efficiency, the inability to apply those methods to this deduction may be disappointing. That’s why it’s important to weigh the benefits of this provision against other, potentially more tax-advantaged giving vehicles.

Why 2025 Planning Matters

Between the expanded standard deduction, the upcoming 2026 limits, and the special rules for non-itemizers, 2025 stands out as a year where timing truly matters. Many clients will be better served by making strategic, possibly larger-than-usual gifts this year. Others may prefer to wait, depending on income expectations, charitable priorities, and other elements of their financial plan.

It’s also a good year to revisit conversations about the why behind charitable giving. Tax benefits are valuable, but they’re not the sole driver. Many clients are motivated by the chance to make a difference in their communities, support causes close to their hearts, and create a philanthropic legacy for their families.

Our team at the community foundation is ready to partner with you as you guide clients through these decisions. We can help set up donor-advised funds for bunching strategies, facilitate gifts of complex assets, and connect clients with opportunities that align with their passions.

If you’re working with clients who are considering charitable giving in 2025, now is the time to start the conversation. The earlier you map out a strategy, the more options you’ll have to take advantage of this year’s rules while preparing for the changes ahead.