What to Consider Before December 31
As the end of the year approaches, many people begin thinking about their charitable giving. Fall is a good time to check in on your charitable goals before the year-end rush and coordinate your tax planning, financial planning and charitable giving.
One strategy some donors consider is charitable “bunching,” which involves combining multiple years of charitable contributions into a single tax year.
Bunching has become more relevant as changes to the standard deduction have affected the number of taxpayers who itemize deductions. The Tax Cuts and Jobs Act of 2017 significantly increased the standard deduction beginning in 2018.
Additional changes to charitable deduction rules under the One Big Beautiful Bill Act, enacted in 2025, affect charitable giving beginning in 2026. For taxpayers who itemize, the law establishes a 0.5% adjusted gross income floor for charitable deductions and, for taxpayers in the highest tax bracket, a 35% cap on the tax benefit of those deductions.
These changes make thoughtful charitable planning an important conversation to have with your professional advisors.
Start Planning Before the Year-End Rush
Beginning your planning in the fall gives you time to consider your options and coordinate with your financial, tax and legal advisors.
Depending on your circumstances, you may want to consider:
- Whether charitable bunching may be appropriate for your giving strategy
- How much you plan to give this year
- The organizations and causes that are most important to you
- Whether you want to make a one-time gift or establish an ongoing commitment
- How charitable giving fits into your broader financial and estate plans
Collaboratory can work alongside your professional advisors to help you explore charitable giving options and determine what approach may best fit your goals.
This article is provided for educational purposes only and is not intended to provide tax, legal or financial advice. Donors should consult their qualified tax, legal and financial advisors regarding their individual circumstances.
