December 4, 2025

With major tax law changes set to take effect in 2026, now may be the ideal time to evaluate your charitable giving strategy. Learn how high-net-worth individuals and business owners can maximize tax savings and legacy impact by planning ahead.

As 2025 winds down, the question many families and business owners are asking is: “Should I make my charitable gifts now — or wait until 2026, when new tax rules go into effect?”

The answer depends on your financial picture, how you give (cash, appreciated assets, donor-advised fund, etc.), and how you file taxes. Fortunately, this shift in policy offers a valuable opportunity to think more strategically about giving, tax benefits, and your long-term philanthropic legacy.

What’s Changing in 2026 — and Why 2025 Matters

The One Big Beautiful Bill Act (OBBBA), signed in 2025, will significantly change the rules around charitable deductions beginning in the 2026 tax year. Here’s a quick breakdown:

• Starting in 2026, even taxpayers who don’t itemize will be able to deduct up to $1,000 (single) or $2,000 (married filing jointly) in cash gifts to qualifying charities.
• For those who do itemize, new limitations will apply: deductions only apply to the portion of charitable contributions exceeding 0.5% of adjusted gross income (AGI).
• High-income earners may also see a reduced tax benefit per dollar donated under the new rules.

In essence, 2025 offers the “last full year” under the current, more favorable tax rules. That makes it a pivotal year to consider accelerating your charitable giving if you want to maximize your tax benefit.

Who Should Consider Giving Now — and How

Accelerating charitable contributions before December 31, 2025, may be particularly advantageous for:

• Itemizers and High-Net-Worth Donors: If you typically itemize and make significant charitable contributions—whether in cash or appreciated stock—acting in 2025 could preserve the full value of your deductions.
• Those Planning Large or Multi-Year Gifts: “Bunching” several years’ worth of donations into 2025 can push you above the itemization threshold and increase your tax benefit.
• Givers of Appreciated Assets: Donating stock or other non-cash assets this year may allow you to claim a deduction and avoid capital gains tax—benefits that could be more limited in 2026.
• Donors Using Donor-Advised Funds (DAFs): Contributing to a DAF in 2025 lets you lock in the current deduction while retaining flexibility to grant funds over time.

When It Might Make Sense to Wait Until 2026

Not everyone should rush to donate before year-end. Waiting may be beneficial if:

• You Don’t Itemize and Plan to Give Small Amounts: The new universal deduction starting in 2026 may provide more value for modest, one-time cash gifts.
• You Anticipate Major Changes in Income: If your income will be significantly higher or lower next year, waiting could align your donation with a more favorable tax situation.
• Your Philanthropic Timing Isn’t Tied to Immediate Tax Benefits: If your giving is more mission-driven than tax-driven, it may make sense to wait and contribute when the need is greatest or your goals are more defined.

Planning Tips to Maximize Charitable Impact

Whether you choose to give now or in 2026, consider the following strategies to enhance your impact:

• Use a DAF to aggregate donations now and distribute them later.
• Donate appreciated assets instead of cash to avoid capital gains tax.
• “Bunch” donations in high-income years to exceed the itemization threshold.
• Finalize donations early—especially non-cash gifts—to avoid year-end processing delays.
• Align your giving with major financial events like a business sale, estate plan update, or liquidity event for maximum impact.

A Legacy Opportunity for 2025

For many affluent families and business owners, 2025 may be the last year to take full advantage of the current charitable giving rules. If you’ve been considering a significant gift, establishing a donor-advised fund, or supporting a cause close to your heart—this is the moment to act.

At the same time, the new rules in 2026 create fresh opportunities, particularly for standard deduction filers. As always, the key is to align your giving with your broader financial goals and legacy vision.

Let’s talk strategy. Schedule a review with Omni 360 Advisors to optimize your charitable planning—or book a legacy planning session with Omni Legacy Law to ensure your giving aligns with your estate goals.