Charitable Giving Just Got a Makeover: What the Big, Beautiful Bill Means for Your Year-End Giving Strategy

Posted October 16, 2025 under: , ,

Written by Christina Miller

The One Big Beautiful Bill Act, signed into law earlier this year, brings sweeping changes to the tax code—many of which directly impact charitable giving. Whether you’re a seasoned philanthropist or just starting your giving journey, these updates offer both opportunities and challenges. The good news? There’s still time to make the most of your giving in 2025.

Here’s what you need to know—and how you can act now to make the most of your giving.

A New Universal Deduction for Non-Itemizers (Starting 2026)

Beginning next year, taxpayers who take the standard deduction can also deduct up to $1,000 (single) or $2,000 (married filing jointly) for cash gifts to qualified public charities.

What this means: If you don’t itemize, you’ll soon be eligible for a modest tax break on charitable giving. But this doesn’t apply to gifts to donor-advised funds (DAFs) or private foundations.

Why act now: This provision doesn’t kick in until 2026. If you want to make a larger impact and potentially receive a greater tax benefit, consider contributing to your fund before December 31, 2025.

New Limits for High-Income Donors (Starting 2026)

If you’re in the top 37% tax bracket, your charitable deduction will be capped at 35% of the gift’s value starting next year.

Example: A $10,000 gift that currently yields a $3,700 tax deduction will only generate $3,500 in 2026.

Why act now: If you’re planning a significant gift, accelerating your contribution to 2025 ensures you benefit from the full deduction under current rules.

A New Floor for Itemized Deductions

Starting in 2026, itemizers can only deduct charitable contributions that exceed 0.5% of their adjusted gross income (AGI).

Example: If your AGI is $200,000, only gifts above $1,000 will be deductible.

Why act now: Smaller gifts may not qualify for deductions next year. Consider bunching donations or contributing appreciated assets to your fund now to ensure deductibility.

Corporate Giving Gets a Floor Too

Corporations will only be able to deduct charitable contributions that exceed 1% of their AGI starting in 2026.

Why act now: Businesses considering philanthropic investments should plan ahead to ensure their giving strategies remain tax-efficient.

Your Next Move: Give Early, Give Strategically

With these changes on the horizon, 2025 is a pivotal year for charitable planning. Whether you’re looking to open a new fund or contribute to an existing one, acting before December 31 can help you:

  • Lock in maximum tax benefits
  • Support the causes you care about
  • Prepare for a more complex giving landscape in 2026

Ready to take action?

Have questions or need help planning your year-end giving? Contact our team at stewardship@cflouisville.org or call 502.585.4649.

Check out the Council on Foundations to learn more about the implications of the recent tax bill on charitable giving.