Opportunities for 2025
It’s more important than ever to stay informed about how changes in the tax law may affect your charitable giving. The recently-passed One Big Beautiful Bill Act (OBBBA) creates challenges as well as opportunities for structuring your philanthropy. We encourage you to reach out to your attorney, CPA, and financial advisor to evaluate how the changes in the law impact your own situation.
As always, Community Foundation of the Gunnison Valley is happy to work side-by-side with you and your tax advisors to build a plan for 2025 and beyond that not only supports your plans to make a difference in the community, but also addresses the rule changes under the OBBBA.
To help you along this journey, we’ve provided the checklist below of issues to discuss with your advisors.
Evaluate Whether "Bunching" May be Right for You
The OBBBA increases the 2025 standard deduction to $15,750 for single filers and $31,500 for married couples filing jointly. The higher standard deduction will likely impact tax-motivated charitable giving, even with the expected uptick in the number of itemizers thanks to the OBBBA’s state and local tax deduction allowances (subscription required to the Wall Street Journal to access full articles). There are important exceptions and nuances to consider, which you’ll want to discuss with your advisors. For example, if you are 65 or older, you’re eligible to receive an additional $6,000 “bonus” deduction—but it begins to phase out if your modified adjusted gross income (MAGI) exceeds $75,000.
Based on the increases to the standard deduction, you may want to talk with your tax advisors about “bunching” charitable gifts for 2025 using a new or existing Donor Advised Fund (DAF) at CFGV. Through this technique, you can make several years’ worth of charitable contributions in a single year to exceed the standard deduction threshold, thereby maximizing tax benefits in that year. Over the following years, your DAF can distribute grants to charities over time according to your wishes.
There are more reasons you might want to talk with your advisors about front-loading charitable contributions in 2025. In 2026, a new provision under the OBBBA takes effect that allows you to take a deduction for charitable gifts only to the extent that your giving exceeds 0.5% of your AGI. What’s more, if you’re in the highest tax bracket, 37%, you can still only deduct charitable contributions at the 35% rate.
The upshot here is that you and your tax advisors may decide that 2025 is the year to bunch charitable contributions to maximize tax savings.
Let's Connect
Want to open a DAF with CFGV to make it easier to bunch your giving in 2025? Sit down with Jessica Wurtz, CFGV’s Director of Philanthropy to talk through your options.
Get Familiar with the Deduction for Non-Itemizers, Coming Next Year
If you don’t itemize your deductions, you’ll be glad to know that starting in the 2026 tax year you can claim a deduction for cash gifts to qualifying public charities—up to $1,000 for single filers and $2,000 for married couples filing jointly. Excluded from this new provision are gifts to DAFs and non‑cash gifts, which is unfortunate because those vehicles are popular, convenient, and tax-effective. Still, keep in mind the new deduction, and, if you’re encouraging your adult children to get involved in philanthropy, make sure they are aware of this deduction. It could be particularly helpful for young people because many young people do not yet itemize.
If You Are Over 70.5, Review the Benefits of Qualified Charitable Distributions
A Qualified Charitable Distribution (QCD) enables individuals aged 70 ½ or older to donate up to $108,000 per year (as of 2025) directly from an IRA to eligible charities, and in the process exclude the donated amount from taxable income altogether–rather than relying on an itemized deduction. QCDs may be especially advantageous after the OBBBA’s significant increase to the standard deduction because QCDs provide a direct tax benefit regardless of whether you itemize or take the standard deduction. Indeed, using a QCD to fulfill required minimum distributions (RMDs) can lower your adjusted gross income, potentially reducing taxes on Social Security income and Medicare surtaxes and helping you sidestep the new floors and caps on itemized charitable deductions imposed by the OBBBA starting in 2026.
Extra Context
Did you know that you can’t use a QCD to fund a DAF? In July, we shared a story about a Mt. CB couple who are using CFGV Designated Funds as a tax-wise legacy giving strategy.
CFGV is happy to collaborate with you and your tax advisor as you explore ways to achieve your philanthropic goals under the new laws. We look forward to hearing from you!
The team at CFGV is honored to serve as a resource and sounding board as you build your charitable plans and pursue your philanthropic objectives for making a difference in the community. This article is provided for informational purposes only. It is not intended as legal, accounting, or financial planning advice. Please consult your tax or legal advisor to learn how this information might apply to your own situation.
Simplified Summary
The One Big Beautiful Bill Act means changes to tax law. Those changes might change the way you think about giving to charities. Now is a good time to plan with your advisors for 2025 and 2026. Community Foundation of the Gunnison Valley (CFGV) can work with you and your advisors to support your giving goals. You can think about different strategies to help your community. Those strategies may also help you save money on your taxes. Starting at fund at CFGV might be a smart way to give to local charities. Call CFGV at 970-641-8837 to set up a meeting.
