https://www.nytimes.com/2025/12/12/your-money/donations-charity-tax-law.html
Should You Donate to Charity This Year or Wait? It Depends.
Changes in the tax law will have different effects on people who take the standard deduction versus high earners who itemize.
By Ann Carrns, The New York Times, Dec. 12, 2025
Thinking about donating to your favorite charity before the new year? You may want to consider tax law changes arriving in 2026 before deciding whether to make your gift in December or wait until next year.
Changes this summer to the federal tax law, effective Jan. 1, mean that high earners who itemize deductions may see more of a benefit if they donate before the end of this year, tax experts say.
People who take the standard deduction, however, may be better off waiting until next year…
The OBBBA law set a new “floor” for deductions of charitable contributions of 0.5 percent of the filer’s adjusted gross income, which means only amounts that exceed that level may be deducted…The same charitable contributions made in 2025, however, would include the first 0.5% in the allowable deduction…
The law also set a lower cap on the value of deductible contributions made by high-earning donors. … The top bracket in 2026 will apply to individuals with income over $640,600, and to married couples filing jointly with income above $768,700…
But starting in 2026, people who take the standard deduction ($16,100 for single filers and $32,200 for married joint filers in 2026) can also take a deduction for direct charitable donations of up to $1,000 for single tax filers and $2,000 for married couples filing jointly. (Contributions to donor-advised funds, however, aren’t eligible for the deduction, according to Fidelity Charitable.)… [This encourages small donors such as contributors to churches, etc. who don’t itemize deductions.]
People 70½ or older can donate up to $108,000 directly to eligible charities in 2025 from an individual retirement account and have the money excluded from their taxable income… [end quote]
This impacts us directly because DH turned 73 in 2025 so he will have to make a Required Minimum Distribution (RMD) in 2025 or before April 1 2026. He can combine his 2025 and 2026 RMDs in 2026 to make a direct distribution to a gift plan that combines a charitable gift annuity and a Qualified Charitable Distribution (QCD) from an IRA. Then he will get lifetime payments.
The Red Cross has a good description but DH wants to donate to his alma mater.
Anyone who wants to make charitable donations should think carefully about whether to donate in 2025 or 2026 to maximize the tax break.
Wendy