Year-End Charitable Giving: Why Now Is the Time to Act
With just two weeks left in the year, the window to take advantage of current charitable giving tax benefits is closing quickly. If supporting charitable causes is part of your financial or estate plan, this is the year to act. Waiting could mean missed deductions and fewer planning opportunities as new rules take effect in 2026.
Charitable contributions must be completed by December 31, 2025 to be deductible on your 2025 tax return. As year-end approaches, timing matters more than ever—particularly for individuals and families looking to maximize deductions while supporting organizations that matter to them.
Why Acting Now Matters
Under current law, taxpayers who itemize deductions may claim charitable deductions for qualifying gifts made to recognized charitable organizations. Making contributions before year-end can help reduce taxable income while allowing you to align your financial planning with your philanthropic goals.
In addition, donating appreciated assets, such as stocks or other securities, before year-end may allow donors to avoid capital gains tax while still receiving a charitable deduction for the full fair market value of the asset. This strategy can be an efficient way to increase the impact of a gift while improving overall tax efficiency.
Year-end charitable giving may also play a role in broader estate planning strategies, helping reduce the size of a taxable estate while supporting charitable causes and leaving a lasting legacy.
Looking Ahead: Changes Coming in 2026
Beginning in 2026, new federal rules will reduce a portion of your charitable contributions, thus reducing the amount that is deductible on your 2026 income tax return. Therefore, it may be advantageous to shift your intended 2026 gifting into tax year 2025 to maximize the tax benefits.
However, 2026 provides a benefit for taxpayers who do not itemize, by adding a permanent deduction for certain charitable deductions; although there are some limitations in both amount and scope.
Under the new law, non-itemizers will be permitted to deduct up to $1,000 for single filers and up to $2,000 for married couples filing jointly. While this change may provide modest relief for some taxpayers, it represents a much narrower deduction than what is currently available to itemizers.
Equally important, only specific types of charitable gifts will qualify. The deduction will apply only to cash contributions made directly to qualified public charities. Contributions to donor-advised funds (DAFs), private non-operating foundations, or supporting organizations will not qualify for this specific deduction.
These upcoming limitations underscore an important planning reality: 2025 offers greater flexibility and potentially more meaningful tax benefits for charitable giving than what may be available in 2026 and beyond.
Don’t Delay
Charitable giving is about more than tax savings—but timing is critical. With year-end fast approaching, now is the time to finalize contributions, confirm that recipient organizations qualify, and ensure gifts are properly documented.
If charitable giving is part of your broader financial or estate plan, acting before December 31 can help you maximize current deductions, reduce future tax exposure, and make a meaningful impact.
We encourage you to consult with your legal and tax advisors now to ensure your year-end charitable gifts are structured in the most effective way possible. If you have questions, our team is here to help — contact us at 215.661.0400.