Timing Is Everything: Mapping Out Your Clients’ 2025 Charitable Giving Plans

Changes under the One Big Beautiful Bill Act (OBBBA), signed into law on July 4, 2025, are creating complexity, opportunity, and, for some, urgency. The OBBBA reshapes both how much your client can deduct for charitable contributions and which clients can benefit from these deductions in the first place. 

Evaluate whether your client could benefit from “bunching” charitable contributions in 2025

Many advisors are recommending that their clients maximize the One Big Beautiful Bill Act’s expansion of the standard deduction — $15,750 for single filers and $31,500 for married couples in 2025, with even higher levels for taxpayers aged 65 and older. A technique known as “bunching” charitable donations can be particularly useful for your philanthropic clients. For example, if a client typically donates $12,000 each year to charity, but the client’s other deductions do not push them over the standard deduction, the client could give $36,000 (three years' worth of gifts) to a Donor Advised Fund at The Community Foundation in 2025. The client can combine this gift with other deductions to substantially exceed the standard deduction, allowing the client to itemize and claim a much greater deduction for that year. Over the next two years, the client takes the standard deduction and uses the Foundation Donor Advised Fund to distribute grants to favorite charities. 

Beginning in 2026, OBBBA caps the tax benefit of itemized charitable deductions at 35%, even for those in the 37% tax bracket. Donors considering significant charitable giving may want to do so in 2025 to increase their potential deduction. Also, effective in 2026, only charitable donations exceeding 0.5% of AGI will be deductible. For example, a couple with $225,000 in AGI would see their deductible charitable amount reduced by $1,125 per year. Clients would benefit from bunching strategies in 2025 to maximize current tax advantages before stricter limits kick in.

2025 certainly is shaping up to be an important year for helping your clients plan their charitable gifts. Please reach out to our team to explore ways to leverage The Community Foundation’s tools, including establishing your client’s Donor Advised Fund to take advantage of bunching. 

And of course, in addition to the tax implications, your clients’ philanthropy addresses vital community needs — a motivator that transcends any deduction.