High-income donors: Why 2025 is big for charitable giving
Written by:
Clark Collier, CAP(R), Director of Giving Strategies
The fourth quarter is upon us, and you’re no doubt gearing up for year-end giving initiatives. This is always a busy time! Indeed, the 2025 giving season is particularly important because new tax laws have created a window of opportunity—and increased awareness about charitable giving in general—among your donors and the public.
Here are three recommendations along with “what you need to know” and “what you need to do” for each:
High-income donors should consider giving more this year
What to know
Starting in 2026, taxpayers who itemize income tax deductions will be eligible to deduct charitable contributions only to the extent that they exceed 0.5 percent of the taxpayer’s adjusted gross income. In addition to this floor, the new tax laws impose a cap on charitable deductions beginning next year such that even your donors who are in the 37% income tax bracket will be eligible to deduct charitable contributions only up to the 35% level. This means donors who accelerate giving in 2025 may capture tax value that will be harder to access later.
What to do
To lean into this opportunity, consider adding messages to your email newsletters, year-end talking points, and other materials along the lines of this: “Do you itemize deductions on your income tax return? Talk with your tax professional about the advantages of increasing your charitable giving in 2025 before the laws change in 2026. We are grateful for your support!”
Appreciated stock is still an excellent gift
What to know
The new tax laws brought a lot of changes, but don’t forget about the longstanding charitable giving strategy of giving appreciated stock. 2025 has been a strong year for many stocks, and it’s likely that your donors are holding appreciated securities. Donors often need to be reminded that they can give stock held for more than one year to a public charity, such as your nonprofit organization, and potentially avoid capital gains tax.
What to do
Be sure to include language in your year-end giving materials reminding donors that your organization can accept gifts of stock, such as: “Remember, appreciated stock is often a far more tax-effective gift to charity than cash. Consult your tax advisor to see how this might work for you, and please reach out to our team to arrange for a gift before year-end. We appreciate your support!”
Qualified Charitable Distributions are still important and still relatively unchanged
What to know
The rules for Qualified Charitable Distributions (QCDs) are not directly affected by the new tax laws. QCDs remain a powerful charitable giving tool for your donors who are over the age of 70 ½. Your donors might be concerned or confused that the QCD rules have changed alongside other rules for charitable giving, so it is worth reassuring them that each taxpayer who is 70 ½ or older can give up to $108,000 (2025 limit) to a public charity (such as your organization) directly from an IRA and the distribution won’t be included in adjusted gross income.
What to do
Consider including language in your year-end newsletters and other materials about QCDs, such as: “Are you over the age of 70 ½? Do you own an IRA? If so, a Qualified Charitable Distribution may be a great way to support your favorite charities. Check with your tax advisor and give us a call! We would be honored to receive your gift in the form of a QCD.”
As always, the team at the CICF Collaborative is here to help! Please reach out anytime!
About the CICF Collaborative
CICF Collaborative is a partnership of philanthropic organizations working together to strengthen communities across the region. Each entity within the CICF Collaborative (including the cornerstone entities, Central Indiana Community Foundation, Hamilton County Community Foundation, IMPACT Central Indiana, the Indianapolis Foundation, and Women’s Fund of Central Indiana) brings deep knowledge, strong relationships, and its own individual, focused mission. The CICF Collaborative unites the entities by providing shared services, allowing the entities to operate more efficiently and effectively. By leveraging what we each do best, we’re able to better serve our communities and create more lasting impact, together. Learn more »
About the Author
Clark Collier is CICF’s director of giving strategies, working with individuals, families, and their advisors to structure meaningful and impactful philanthropy. As a Chartered Advisor in Philanthropy (R), Clark provides gift planning support and counsel to the CICF Collaborative and nonprofit organizations throughout the region. He previously served as a philanthropic advisor for CICF and in development roles for both local and global organizations.