How to Make Your 2025 Giving Go Further

by Blake Anderson, Certified Financial Planner™, WealthGuard Advisors, Inc.; and Board Director for Hands4Hope - Youth Making A Difference

Big changes are coming to charitable giving rules in 2026, and while tax considerations are never the reason donors support Hands4Hope - Youth Making A Difference, they can help you give in ways that are more strategic and impactful. With the new federal One Big Beautiful Bill Act (OBBBA) taking effect next year, 2025 is a unique window of opportunity for donors who want to support our youth while maximizing their tax benefits.

Beginning January 1, 2026, donors who itemize will see charitable deductions only apply to total giving above 0.5% of income, and the maximum amount you can deduct will drop to 35%. These changes do reduce the deductibility of smaller, year-to-year gifts, but there is good news: none of these limits apply in 2025. This makes the rest of this year an ideal time to make tax-efficient gifts that support the hands-on youth leadership programs you care about.

Looking forward, itemized giving will lose some tax benefits, but there are some strategies you can use to maximize your tax benefits.

• One popular strategy is bundling, or making several years’ worth of charitable contributions at once through a Donor Advised Fund (DAF). By bundling gifts in 2025, donors can secure a larger deduction now and then recommend grants to Hands4Hope over time. For many donors, a DAF is an easy, flexible way to stay organized and intentional with their giving over the next few years while avoiding the deduction floor starting in 2026. 

• For donors age 70½ or older, Qualified Charitable Distributions (QCDs) remain one of the most tax-advantaged ways to give. A QCD allows you to donate directly from your IRA to Hands4Hope, directly reducing your taxable income while supporting the programs that help local youth build confidence, leadership skills, and compassion. This powerful tool is unchanged by the new law and remains a reliable option for many longtime supporters.

• If you are part of the majority of households that do not itemize your taxes, the new tax law also brings back a universal charitable deduction. This allows non-itemizers to deduct up to $1,000 for individuals or $2,000 for couples each year beginning in 2026. That means every donor has an incentive to give, regardless of tax status. 

As always, we encourage you to speak with your tax or financial advisor to determine which strategy makes the most sense for you.

Thank you for all your support, if you have the means, your thoughtful, tax-smart giving in 2025 will help ensure that our youth continue to access mentorship, leadership development, and service-learning opportunities that shape their and our community’s future for the better.

Please contact us if you have any questions about ways you can give.

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