Important Tax Law Update For End-of-Year Giving

We’re reaching out with big news that could significantly affect how—and when—you choose to give. New legislation, the One Big Beautiful Bill Act, is set to reshape charitable giving starting in 2026. While it introduces some exciting benefits, it also brings new limitations that could reduce the tax benefits of your future donations.

Here’s the good news

Between now and year-end, you have a powerful opportunity to maximize your generosity before these changes take effect. Starting in 2026, donors who itemize will only be able to deduct charitable contributions that exceed 0.5% of their adjusted gross income (AGI). Additionally, a new cap will limit the tax benefit for top earners to 35 cents per dollar donated, down from the current 37 cents.

What can you do now?

• Accelerate your giving: If you plan to give over several years, consider “frontloading” your donations in 2025. This strategy allows you to lock in today’s more favorable tax treatment.

• Use donor-advised funds (DAFs): You can contribute to a DAF this year, receive the full tax benefit now, and distribute grants to nonprofits like ours over time.

• Take advantage of the higher SALT cap: The opportunity this year isn’t just for top earners. The state and local tax deduction cap has temporarily increased from $10,000 to $40,000 in 2025, making itemizing more attractive for many donors in high-tax states. Those switching to itemization due to the SALT cap increase should also consider whether frontloading charitable gifts is feasible to maximize their savings.

We encourage you to speak with your financial advisor or tax professional to explore how these changes may affect your giving strategy.

Let’s make 2025 a year of bold generosity. Together, we can turn this moment into lasting change.