December 17, 2025
Recent changes to federal tax law bring both opportunities and considerations for donors and nonprofits alike. In this season of giving, now is a good time to understand how these updates may impact charitable giving in 2025 and beyond.
Key Takeaways for Donors
1. Higher Standard Deduction in 2025
The standard deduction has increased to $15,750 for single filers and $31,500 for married couples filing jointly.
Although more taxpayers are expected to itemize, this may have an impact on charitable giving. Strategies like “bunching” charitable gifts into one year, often through a donor-advised fund, can help maximize tax benefits.
2. New Deduction for Non-Itemizers in 2026
Starting next year, those who take the standard deduction will be able to claim an additional charitable deduction, up to $1,000 for single filers and $2,000 for married couples, for cash gifts to qualifying public charities. This provision does not apply to gifts made to donor-advised funds or non-cash gifts.
3. Qualified Charitable Distributions (QCDs)
For donors aged 70½ or older, the limit on QCDs for tax year 2025 will increase to $108,000 per year to be transferred directly from an IRA to a qualified charity, excluding that amount from taxable income. QCDs can also count toward required minimum distributions for those age 73 and older.
These updates are intended as a resource to keep donors informed, enabling them to make strategic decisions about their end-of-year contributions while continuing to support the causes that strengthen our communities.
Unchanged But Still a Great Strategy!
By giving appreciated securities, including publicly traded stock held for over one year, you can support your favorite nonprofits and also benefit from notable tax advantages. Donors who itemize can deduct the security’s fair market value and also avoid paying capital gains tax on its appreciated growth.
Our Role at AAACF
AAACF partners with donors, advisors, and nonprofit leaders to build lasting impact through informed philanthropy. As tax laws evolve, we’re here to provide guidance and connect community members with trusted professional resources.
We encourage all donors to consult their tax or financial advisors to explore how these changes may affect their giving plans.