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New Year celebration concept. Front view. Close-up<\/p>\n
Anna Efetova | Moment | Getty Images<\/p>\n<\/div>\n<\/div>\n<\/div>\n
President\u00a0Donald Trump<\/a>‘s “big beautiful bill” added trillions of dollars of tax breaks<\/a>,\u00a0some of which could impact your deduction<\/a> for charitable giving.<\/p>\n U.S. individual giving grew to $392.45 billion<\/a> in 2024, up by about 5%, including inflation, from the previous year, according to Giving USA’s annual report released in June.<\/p>\n But as the calendar winds down, your 2025 year-end giving strategy could look different than that of previous years, financial experts say.<\/p>\n More from Personal Finance:<\/strong> When planning for charitable giving, investors should consider a “multi-year approach,” especially after the latest tax law changes, according to Dianne Mehany, who leads the private tax group of EY’s national tax department in Washington, D.C.<\/p>\n Here is a breakdown of some of the key changes \u2014 and how they could impact your year-end donations.<\/p>\n<\/div>\n When filing taxes, you claim the greater of your itemized tax breaks or the standard deduction. For 2025, the standard deduction is now $15,750 for single filers<\/a> and $31,500 for married couples filing jointly.<\/p>\n But 90% of filers<\/a> don’t itemize, according to the latest IRS data, which prevents most filers from claiming the charitable deduction<\/a>.<\/p>\n This will soon change thanks to Trump’s legislation. Starting in 2026, there’s a new charitable tax break<\/a> for non-itemizers, worth up to $1,000 for single filers and $2,000 for married couples filing jointly.<\/p>\n<\/div>\n With the change happening in 2026, it could make sense to delay smaller, year-end gifts if you typically don’t itemize deductions, experts say.<\/p>\n “It seems like a no-brainer to just do it in January and capture a little benefit that you wouldn’t otherwise achieve,” certified financial planner Edward Jastrem, chief planning officer at Heritage Financial Services in Westwood, Massachusetts, previously told CNBC<\/a>.<\/p>\n<\/div>\n Trump’s legislation could also shrink the charitable deduction<\/a> for some higher earners in 2026, experts say.<\/p>\n Starting in 2026, there’s an itemized charitable deduction “floor,” which only permits the tax break once it exceeds 0.5% of your adjusted gross income. Plus, the new law caps the benefit for filers in the top 37% income tax bracket<\/a>, also beginning in 2026.<\/p>\n “You’re essentially reducing your benefit to 35% instead of 37%,” which “feels like a double hit,” when combined with the 0.5% deduction floor, said Mehany from EY.<\/p>\n<\/div>\n With the charitable deduction reductions for 2026, “there’s some benefit to accelerating [donations] this year,” said certified public accountant Sheneya Wilson, founder and CEO of Fola Financial in New York.<\/p>\n One option to frontload gifts in 2025 could be using a so-called donor-advised fund<\/a>, which works like a charitable checkbook.<\/p>\n You receive an upfront charitable deduction on transferred assets by “bunching” multiple years of gifts into a single year. Then, you can invest and potentially grow the balance while choosing grants for public charities later.\u00a0<\/p>\n
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