2025: A Strategic Year for Charitable Giving, Before 2026 Tax Changes
December 5, 2025Now is an important time to plan your charitable giving. Year-end donations allow you to support a cause close to your heart, while maximizing your tax benefits. But this year carries added significance: new federal tax laws taking effect in 2026 will change how charitable deductions work, particularly for higher-income taxpayers. Acting in 2025 could help you preserve valuable tax advantages.
Why Year-End Giving Matters
Making charitable contributions to GBMC before December 31 allows you to claim the deduction on your 2025 return—under the current, more favorable rules. Year-end giving is a way to:
- Maximize deductions while the full charitable deduction is still available.
- Support your favorite program, department or center of excellence at GBMC at a critical time.
- “Bunch” donations to exceed the standard deduction, allowing you to itemize this year.
Even without the tax implications, your support helps GBMC continue vital programs that strengthen the Greater Baltimore community.
What’s Changing in 2026—and Why Does It Matter Now?
- New 0.5% AGI floor: For itemizers, charitable contributions will only be deductible to the extent they exceed 0.5% of adjusted gross income (AGI). Smaller gifts may no longer provide a full tax benefit.-
- Reduced deduction benefit: High-income taxpayers will see a reduced deduction rate—those in the top tax brackets may receive only 35 cents of deduction benefit per dollar donated, instead of their full marginal rate.
- Phase-out of itemized deductions for high earners: Starting in 2026, taxpayers with AGIs of $500,000 or more will face a phase-out of itemized deductions, including charitable contributions. So, as your income increases beyond that threshold, the total amount of allowable deductions—including charitable gifts—will be gradually reduced or even eliminated.
How to Approach Your 2025 Giving Strategy
To make the most of your giving consider the following steps:
- Assess your charitable goals. Identify which programs, departments or centers of excellence at GBMC you want to prioritize this year.
- Evaluate your tax position. If your AGI approaches or exceeds $500,000, giving before year-end 2025 could help you secure a deduction that might be partially phased out in 2026.
- Document your gifts carefully. Ensure all contributions are postmarked or completed by December 31, 2025.
- Consult your financial or tax advisor.
The Bottom Line Year-end giving has always been a meaningful act of generosity. But with new tax laws in 2026, 2025 represents a rare window of opportunity. For more information, contact Senior Director of Principal Gifts John C. Jeppi at 443-849-3303 or jjeppi@gbmc.org or visit www.gbmcplannedgiving.org .
