By Jennifer Kohn Koppel

Tax planning can be tedious, but thinking about how one can plan so that their charitable giving is maximized may be one way to spark enjoyment in the process. The One Big Beautiful Bill Act (OBBBA) has several new provisions that are important to consider when thinking about plans to support the causes one cares about over the years ahead.

The Value of ItemizedCharitableDeductionsReduces in 2026

Experts agree that those who usually itemize their expenses for tax purposes might consider accelerating any large charitable gifts into 2025 to avoid the new 2026 limits, while those who take the standard deduction should consider bunching gifts in 2025 and watch for the new universal charitable deduction in 2026.

Financial Flexibility is an Advantage in 2025

Dr. Russell N. James, professor at the School of Financial Planning at Texas Tech University, emphasizes that with the passage of the OBBBA, itemized charitable deductions are worth more in 2025 than afterwards. Given this reality, 2025 is a perfect year to target as “an itemizing year.” For people with financial flexibility, bunching is a strategy where they concentrate more of their charitable giving in a specific year and scale back in the years before and after. James uses this example to help explain the concept, “You give $10,000 each year for four years with no other deductions. If the standard deduction was $15,000, this creates no tax benefit. But if you bunch all that giving in the first year, you deduct $40,000 in the target year and then take the standard deduction in the off years. This bunching increases your tax deductions by $25,000.” People can bunch gifts either by paying a multi-year pledge or moving assets into a donor advised fund.

Now is a Good Time for Estate Planning

OBBBA permanently increases the estate and gift tax exemption amount to $15 million per individual ($30 million married) starting in 2026. The amount will be indexed for inflation. Any change in the tax law impacting estate and gift taxes provides an opportunity to plan and thoughtfully consider charitable giving strategies for estate plans and creating meaningful legacy gifts.

For those who regularly support charities, their generosity matters—regardless of whether it comes with a tax deduction. For nonprofits and professional advisors who work with clients who are charitable, it’s worth remembering that giving is rarely only about the tax benefit. Many factors inspire philanthropy, and for many families, it remains a deeply held priority. ■

This information is provided for informational purposes only. It is not intended as legal, accounting, or financial planning advice.