High-income donors: Why 2025 is big for charitable giving

by Laurie Dames, Manager Donor Services

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The fourth quarter is upon us, and you’re no doubt gearing up for year-end giving initiatives. This is always a busy time! Indeed, the 2025 giving season is particularly important because new tax laws have created a window of opportunity and increased awareness about charitable giving in general among your donors and the general public.  

Here’s what you need to know–and do:

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High-income donors should consider giving more this year

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What to know

Starting in 2026, taxpayers who itemize income tax deductions will be eligible to deduct charitable contributions only to the extent that they exceed 0.5 percent of the taxpayer’s adjusted gross income. In addition to this floor, the new tax laws impose a cap on charitable deductions beginning next year such that even your donors who are in the 37% income tax bracket will be eligible to deduct charitable contributions only up to the 35% level. This means donors who accelerate giving in 2025 may capture tax value that will be harder to access later.  

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Helpful Tip

To lean into this opportunity, consider adding messages to your email newsletters, year-end talking points, and other materials along the lines of this: “Do you itemize deductions on your income tax return? Talk with your tax professional about the advantages of increasing your charitable giving in 2025 before the laws change in 2026. We are grateful for your support!”

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Appreciated stock is still an excellent gift

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What to know

The new tax laws brought a lot of changes, but don’t forget about the longstanding charitable giving strategy of giving appreciated stock. 2025 has been a strong year for many stocks, and it’s likely that your donors are holding appreciated securities. Donors often need to be reminded that they can give stock held for more than one year to a public charity, such as your organization, and potentially avoid capital gains tax.  

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Helpful Tip

Be sure to include language in your year-end giving materials reminding donors that your organization can accept gifts of stock, such as: “Remember, appreciated stock is often a far more tax-effective gift to charity than cash. Consult your tax advisor to see how this might work for you, and please reach out to our team to arrange for a gift before year-end. We appreciate your support!”

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Qualified Charitable Distributions are ever-important

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What to know

The rules for Qualified Charitable Distributions (“QCDs”) are not directly affected by the new tax laws. QCDs remain a powerful charitable giving tool for your donors who are over the age of 70 ½. Your donors might be concerned or confused that the QCD rules have changed alongside other rules for charitable giving, so it is worth reassuring them that each taxpayer who is 70 ½ or older can give up to $108,000 (2025 limit) to a public charity (such as your organization) directly from an IRA and the distribution won’t be included in adjusted gross income.

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Helpful Tip

Consider including language in your year-end newsletters and other materials about QCDs, such as: “Are you over the age of 70 ½? Do you own an IRA? If so, a Qualified Charitable Distribution may be a great way to support your favorite charities. Check with your tax advisor and give us a call! We would be honored to receive your gift in the form of a QCD.”  

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As always, the team at Community Foundation Tampa Bay is here to help! Our philanthropy professionals can assist nonprofits in strengthening donor relationships, facilitating complex gifts such as stock or QCDs, and connecting with fundholders who share your mission. We also provide resources and insights to help you make the most of year-end giving opportunities. Visit our End-of-Year Giving page to explore helpful tools and tips.

If you have questions, please contact our Associate Vice President of Philanthropy, Denyve Boyle, for personalized guidance and support.

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Denyve Boyle, CAP®, CFRE, MBA is an experienced, highly motived professional that inspires philanthropy throughout the community by educating and engaging individual donors, corporations and professional advisors. She can be reached by phone at (813) 609-4868 or via dboyle@cftampabay.org.

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