If you’re a high-net-worth individual looking to maximize your charitable giving, 2025 is the year to give more.
Starting in 2026, new tax rules in the One Big Beautiful Bill could cost you tens of thousands in lost deductions. But this year, you still have a unique opportunity to give smarter and make every dollar count.
How will the One Big Beautiful Bill impact your giving? And what strategies can you act on now to lock in the most benefits? Watch the video to learn more!
Transcript:
Welcome back to Lizzie’s Wealth Wisdoms. This is your go-to podcast for smart wealth and tax-savvy strategies. I’m Lizzie and today we’re talking about a window of opportunity that savvy, charitable, high-net-worth individuals should not miss. And it is closing at the end of this year. Thanks to new rules in the One Big Beautiful Bill, giving in 2025 can deliver significantly higher tax benefits than waiting until 2026 and beyond.
The 0.5% AGI Floor—What Changes in 2026?
Starting in 2026, itemizers, that is, taxpayers who file itemized deductions, will face a new 0.5% adjusted gross income (AGI) floor. This means that a portion of charitable gifts that fall below 0.5% of your AGI won’t qualify for a deduction. So, let me give you an example.
- If your adjusted gross income is $2 million, the first $10,000 of your donations in any given year will not be deductible.
- So, let’s say you donate $100,000. You only get to deduct $90,000. That is real money left on the table.
In contrast, in 2025, there is no such deduction floor—every dollar that you donate counts fully.
So, what’s the strategy here? You should consider bunch giving. Combine several years of planned giving into 2025 to ensure that you exceed that floor. That way, you preserve full deductibility.
The 35% Deduction Cap for High Earners
Another key shift: even if you’re in the top 37% federal tax bracket, beginning in 2026, your charitable deductions will only deliver a maximum 35% tax offset. That’s a 2% haircut on value.
So, let’s play it out.
- If you donate $1 million and expect a $370,000 tax deduction in 2025, or $370,000 in tax savings, if you’re in the top 37% bracket.
- In 2026, you’re only going to net $350,000 in savings. You’ve lost $20,000 in tax relief right off the bat.
Again, accelerating major gifts into 2025 locks in that full 37% benefit.
Examples That Illustrate the Gap
So, let’s walk through two comparative examples.
Example A: bunch giving to clear the 0.5% adjusted gross income floor.
Scenario: your adjusted gross income is $5 million. And you plan to give $50,000 for the next three years.
- If you spread this evenly from 2026 through 2028, each year falls under the $25,000 floor, i.e., no deductions.
- If you bunch that into 2025, a one-time gift of $150,000 is fully deductible. This preserves the tax value that would otherwise vanish.
Example B: high-bracket giving.
Scenario: your adjusted gross income is $2 million, and you plan to donate $500,000.
- In 2025, $500,000 x 37% is $185,000 in tax savings.
- In 2026, because of that 35% floor, that’s $175,000 in tax savings, or you’ve just lost $10,000 all in one go.
Over large gifts, the differences compound making 2025 THE smart year to give big.
What High-Net-Worth Individuals Should Do Now
Here’s how listeners can take strategic steps today:
- Accelerate charitable giving into 2025. Consider bunch giving to clear the 0.5% AGI floor and secure full tax deductions. This can be accomplished by making larger, one-time gifts directly to your favorite charities or by contributing to a donor-advised fund (DAF) in 2025. A DAF allows you to lock in the more favorable deduction rules now, while still granting to your charities gradually in future years—even after the less favorable deduction rules take effect.
- Consider appreciated assets. Donate appreciated stock or property in 2025 to avoid capital gains taxes and maximize deduction value—experts recommend this tactic to turbo-charge giving efficiency.
- Review estate and gift tax planning tools. With estate tax exemptions rising to $15 million per person ($30 million per couple) in 2026, tools like donor-advised funds, charitable remainder trusts, and charitable lead trusts can help integrate philanthropy into your legacy strategies.
- If you’re typically a standard-deduction filer, don’t forget: beginning in 2026, you’ll get an above-the-line deduction—$1,000 if you’re single ($2,000 if you’re married) for cash gifts—though not to donor-advised funds or private foundations. Still, for large-scale philanthropy, itemizing in 2025 could yield greater benefit.
Collaborate with your advisor. Run projections to quantify the impact—every high-value real client deserves a clear, customized plan.
So, what’s the bottom line?
Right now is a unique time-limited window. If you’re planning to give, do so sooner rather than later to maximize both your impact and your tax benefits.
That wraps today’s episode of Lizzie’s Wealth Wisdoms. The One Big Beautiful Bill’s changes give you a short window—now through December 31st of this year—to maximize the benefit of your generosity. Don’t let the new tax floor or deduction cap reduce the impact of your giving. Here’s to making wiser decisions for your wealth and the causes you care most about.
