Do you have a large upcoming charitable pledge in 2026? Are you curious how Donor Advised Funds could create strategic charitable giving plans? If you missed it, we broke down the core HR1 charitable-giving changes in our earlier post, here . Accelerating gifts to Tax Year 2025 could provide an opportunity to maximize your charitable donations.
Donating to charity in tax year 2025 could be advantageous for individual taxpayers because it is the last year before new HR1 limitations take effect. For 2025, individuals can deduct all qualifying charitable contributions, up to the applicable AGI ceiling, with no minimum “floor” that must be exceeded, maximizing the deductible amount for donors. Additionally for taxpayers in the highest tax bracket, additional limitations to itemized deductions begin in 2026.
Depending on your tax situation, accelerating future years’ donations into 2025 and making the donations prior to 12/31/2025 could create a larger tax benefit this year. ‘Bunching’ several years’ worth of gifts into a donor advised fund prior to this year-end could also create a more tax efficient charitable giving strategy.
We are here to help answer your questions and advise you on strategies that make the most sense for you!
About the Author
Desiree specializes in individual and trust taxation. She has over 18 years of experience working with high net worth and... More about Desiree.