New Year Celebration Concept. Front view. close
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President Donald Trump’s “Big Beautiful Bill” added a trillion dollar tax cut.
According to the USA’s annual report released in June, US individuals rose to $3924.5 billion in 2024, an increase of about 5%, including inflation.
But as calendars fade, the end-of-year 2025 strategy to give to the end of the year may look different than in the past few years, financial experts say.
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When planning charitable contributions, investors should consider a “multi-year approach,” especially after the latest tax laws have changed.
Here is a breakdown of some of the major changes and how they affect your year-end donations.
This is “easy” for a small gift
When submitting taxes, you will charge the greater of your itemized tax reduction or standard deduction. The standard deduction for 2025 is $15,750 for single filers and $31,500 for married couples jointly filed.
However, according to the latest IRS data, 90% of filers do not list items. This prevents most filers from claiming charitable deductions.
This will change quickly thanks to Trump’s laws. Starting in 2026, non-approvers will have a new charity tax credit, with single filers up to $1,000 and married couples jointly filing $2,000.
With changes happening in 2026, it usually makes sense to delay smaller end-of-year gifts if you don’t itemize the deduction, experts say.
Edward Justrem, certified financial planner and chief planning officer for Heritage Financial Services in Westwood, Massachusetts, told CNBC previously.
Top earners have a “double hit”
Experts say Trump’s law could reduce the charity deduction for some high-income earners in 2026.
Starting in 2026, there will be a “floor” charity deduction, which is a category-specific charity deduction. This allows tax deductions when it exceeds 0.5% of the adjusted gross income. Additionally, the new laws curtail the profits of top 37% income tax bracket filers starting in 2026.
“You’re essentially reducing your profit to 35% instead of 37%.” This, when combined with the 0.5% deduction, “it feels like a double hit,” says Mehany of EY.
Sheneya Wilson, a certified public accountant for Sheneya Wilson, Founder and CEO of Fola Financial in New York, said that the 2026 reduction in the charity deduction “we will benefit from donations this year.”
One option to frontload gifts in 2025 is for so-called donors to use wisely, which act like a charity checkbook.
By “bunching” multiple year gifts in one year, you receive an advance charity deduction on the transferred assets. You may then invest and expand your balance while choosing public charity grants.
Sharon Epperson contributed to reporting on this story.
