With the passing of the recent legislation — the One Big Beautiful Bill Act — a number of changes will impact charitable giving starting in 2026. As you consider year-end contributions, please note the tax landscape will soon change. 

Key changes beginning in 2026:

• New deduction for nonitemizers: If you claim the standard deduction, you may be eligible for an additional charitable deduction of up to $2,000 (for married couples filing jointly) for cash gifts to public charities. (This does not include gifts to donor-advised funds.)
• State and Local Tax (SALT) cap increased: For 2025, the SALT deduction cap temporarily rises to $40,000 for married couples filing jointly with a modified adjusted gross income below $500,000. Depending on your state and local tax bills, this increase may allow you to itemize deductions — including charitable contributions — on your 2025 return.
• New limits on charitable deductions: Starting in 2026, donors who itemize will only be able to deduct charitable contributions that  exceed 0.5% of their adjusted gross income. In addition, the maximum tax benefit for higher-income donors will be capped at a tax savings of  35 cents per dollar donated for those in the higher 37% bracket.

Why 2025 Matters
As you review your year-end charitable giving plans, you may wish to  consider the following strategies to prepare for the new tax laws scheduled to take effect in 2026.

• Accelerated giving before Dec. 31, 2025, to avoid the application of the new limits on charitable deduction.
• Donor-advised funds (DAFs). Accelerating contributions to a DAF,  including bunching several years’ worth of contributions before Dec. 31, 2025, may avoid or minimize the impact of the new charitable deduction cutbacks, while allowing you the flexibility to support charities over time.

• IRA qualified charitable distributions (QCDs), which remain unaffected by the new limits. QCDs allow you to transfer funds to public charities income tax free, and they can also count toward required minimum distributions. In 2025, the QCD limit is $108,000 per person. The law also allows a one-time-only QCD of $54,000 per person to establish a charitable gift annuity. Please note that QCDs cannot be used to fund a DAF.
• Gifts of appreciated stock. Given the stock market rise over the past several months,  this may be a good year to make a gift of appreciated stock, which allows donors to avoid capital gains tax while receiving a deduction for the fair market value of the asset.  For more flexibility, consider gifting appreciated stock into a DAF.

How We Can Help 
The Jewish Community Foundation offers donor-advised funds and charitable gift annuities to help you make a lasting impact. Our professional team would be delighted to speak with you about these and other options and how they align with your charitable goals.

We encourage you to consult your financial advisor or tax professional to understand how these changes may affect your personal giving.

Your generosity fuels our mission and strengthens Jewish life in Greater Philadelphia and around the world. By planning ahead in 2025, you ensure that more of your support goes directly to the causes you care about.

Let’s make 2025 a year of bold generosity — together, we can turn this moment into lasting change.

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The Jewish Community Foundation of Greater Philadelphia is a branch of the Jewish Federation. The Foundation is steadfast in its commitment to providing top-tier, customized service to individuals, families, and Jewish institutions. The Foundation helps grow aspirations to create a better future and actualize them through smart investments today. Learn more about the Jewish Community Foundation at jewishphilly.org/tomorrow.

Jennifer Molish Brier, Esq. is the chief planned giving officer of the Jewish Federation of Greater Philadelphia’s Jewish Community Foundation. 

This information is provided for educational purposes only and should not be construed as legal or tax advice. Please consult your professional advisors regarding your specific circumstances.