End-of-Year Giving: Smart Strategies to Maximize Your Impact and Tax Benefits
Please note: the information provided below is not intended to be tax advice. Donors should consult their tax advisors for personalized guidance.
October 23, 2025 — As 2025 draws to a close, it’s more important than ever to plan your charitable giving with intention. With significant changes set to take effect for tax year beginning in 2026 under the One Big Beautiful Bill Act (OBBBA), this year presents a unique opportunity to maximize both your philanthropic impact and your tax benefits.
Two key changes are coming:
A new 0.5% Adjusted Gross Income (AGI) floor means that the first 0.5% of your charitable giving will no longer be eligible for a tax deduction.
- For example, if your AGI is $500,000, and you itemize your deductions, then the first $2,500 of your charitable giving (0.5% of $500,000) will not be eligible for a tax-deduction. So, if you donate $20,000 in 2026, only $17,500 of that amount will be eligible for your itemized deductions.
The value of itemized deductions, including charitable deductions, will be capped at 35%, even if donors are in the 37% tax bracket.
- For example, if you donate $10,000 to charity, and you itemize your deductions, and you’re in the 37% tax bracket, before 2026 you could have potentially saved $3,700 in taxes. But starting in 2026, your deduction will be capped at 35%, so you’d only potentially save $3,500, losing $200 in potential tax savings.
That’s why 2025 is a great time to think ahead
Giving this year can help you make the most of your generosity and your tax benefits. Here are three smart ways to maximize your gifts and receive valuable tax benefits, allowing your generosity to go further for the causes you care about.
- Gifts of Appreciated Stock: Donating publicly traded appreciated stock allows you to avoid capital gains tax and receive a charitable deduction for the full fair market value of your gift. This strategy not only helps you make a greater impact on the causes you care about but also maximizes your tax benefits.
- Donor-Advised Funds (DAFs): With a donor-advised fund, you can make a charitable contribution, receive an immediate tax deduction, and support the organizations you care about over time. It’s a flexible and powerful giving tool that allows you to contribute cash, stock, or other assets when the timing is right for you. Learn more about opening a fund here.
- Qualified Charitable Distributions (QCD) from Your IRA: If you’re 70½ or older, a QCD from your IRA to a non-advised fund at the Greater Green Bay Community Foundation could be an ideal way to make a significant gift. You can donate up to $108,000 per person in 2025. This amount is indexed for inflation each year and this amount is not included in your adjusted gross income.
- Additionally, your QCD can potentially satisfy all or part of your Required Minimum Distribution (RMD) for the year*. By donating directly from your IRA, you avoid the taxes typically associated with taking an RMD, which means your giving will go further to support the causes you care about. Whether you’re supporting an existing fund or creating a new one, a QCD is a simple, impactful way to make a difference in the lives of others. Starting in 2025, QCDs will be easier to report thanks to new IRS coding. This helps ensure your tax-free gift is properly documented.
- BONUS: Matching Gift Programs: Many employers offer matching gift programs, meaning your donation could be doubled or even tripled, amplifying your impact and extending your generosity even further.
Need Guidance? We’re Here to Help!
We understand that deciding where to give can feel overwhelming, but you don’t have to navigate it alone. Our team at the Greater Green Bay Community Foundation has deep knowledge of local nonprofits and community initiatives, as well as insight into the region’s most pressing challenges.
Whether your passions lie in education, health and wellness, economic stability, or addressing emerging issues, we can help you align your giving with your values. Let’s work together to create a tailored giving plan that maximizes your impact and supports the causes you care about most.
Contact us today at 920-432-0800 or email Annie Dart at [email protected] to start planning your end-of-year giving. Together, we can make a greater impact.
