This isn’t just another year for philanthropy—2025 comes with fresh tax rules under the One Big Beautiful Bill that change how individuals and organizations approach charitable donations. For many donors, nonprofits, and financial advisors, that means both opportunities and reasons to plan ahead – especially with early deadlines for gifts of appreciated securities.
- New Floor for Itemized Giving: If you itemize, your charitable deductions must exceed 0.5% of your AGI to be deductible. That is, only donations above that floor count.
- Cap on Tax Benefit for High Earners: For those in the highest (37%) tax bracket, the value of their charitable deduction will be capped at 35% starting in 2026. For example, a gift of $1,000 would previously have reduced their tax by $370, but it will reduce it by $350 under the new rules.
- Corporate Giving Floor: Corporations will need to give at least 1% of their taxable income in charitable contributions to claim a deduction (for taxable years beginning after Dec. 31, 2025). Donations above that 1% floor and up to 10% are deductible; anything beyond 10% can be carried forward.
Because many provisions are set to go into effect after December 31, 2025, donors who give this year may benefit under the older rules. That can mean accelerating certain gifts or planning income events to fall in this calendar year. As always, we suggest you consult with your tax advisor for planning the most tax efficient gift.
“A lot of donors are considering ‘bunching’ or ‘bundling’ major gifts to a donor advised fund this year,” said John Zell, Senior Vice President of Development at The Community Foundation. “This allows them to benefit from a larger tax deduction this year, and gives them a runway to make grants over the next several years. The net result is they can be more charitable than they otherwise would.”
The Community Foundation is ready and available to assist you with your year-end giving needs, whether you are a current fundholder or interested in opening a new fund this year.
Key End-of-Year Giving Deadlines
Please keep the following dates in mind when planning your 2025 charitable income tax deductions.
By Halloween: Discuss gifts of complex assets such as real estate, closely held business interests or stock, planned giving vehicles, and gifts of mutual funds and appreciated stock with staff at the Foundation.
By early December: Gifts of mutual funds and appreciated stock should be made by early December. It can take several weeks to liquidate these assets.
By December 22: Donor advised fund grant recommendations should be made in the donor portal, Access My Fund, by this date for grant checks to be postmarked by the end of the year. Timing of grants does not impact charitable income tax donations, but getting it done before the end of the year may be important to the nonprofit you wish to support.
By December 30: Wire transfers of cash must be initiated no later than December 30, 2025.
By December 31: Checks sent via the U.S. Postal Service to The Community Foundation for Northeast Florida must be postmarked on or before December 31, 2025. Checks sent via carriers such as FedEx, UPS and DHL must be physically received at The Community Foundation on or before December 31, 2025. Credit card gifts made by phone must be made no later than 4 p.m. on December 31, 2025; online contributions may be made until midnight.
Whether you are donating liquid or illiquid assets, please contact our staff at (904) 356-4483 at your earliest convenience and let us help you get your 2025 charitable gifts in order.
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