Navigating new laws: Opportunities for 2025
by SCF Team | August 1, 2025 | Siouxland Community Foundation Blog, Donor Resources |
The recently passed One Big Beautiful Bill Act (OBBBA) introduces several tax law changes that may affect how you approach charitable giving. To make the most of these opportunities, consult with your attorney, CPA, or financial advisor—and know that our team is here to partner with you and your advisors to maximize your charitable impact.
Bunching Charitable Gifts
The OBBBA raises the 2025 standard deduction to $15,750 for single filers and $31,500 for joint filers. The higher standard deduction will likely impact tax-motivated charitable giving, even with the expected uptick in the number of itemizers thanks to the OBBBA’s state and local tax deduction allowances (subscriptions required to the Wall Street Journal). There are important exceptions and nuances to consider, which you’ll want to discuss with your advisors. For example, if you are 65 or older, you’re eligible to receive an additional $6,000 “bonus” deduction—but it begins to phase out if your modified adjusted gross income (MAGI) exceeds $75,000.
While this increase means fewer people may itemize, it also opens the door for strategic giving techniques like bunching. By making multiple years’ worth of contributions in 2025 into a donor-advised fund, you can exceed the deduction threshold and distribute grants to charities over time. There are more reasons you might want to talk with your advisors about front-loading charitable contributions in 2025. With new limitations on deductions arriving in 2026—including a 0.5% AGI threshold and deduction caps for high earners—front-loading your giving this year could be especially beneficial.
Endow Iowa Tax Credit
For Iowa taxpayers, the Endow Iowa Tax Credit continues to be one of the most effective giving tools. Donors to qualified permanent endowment funds at the Siouxland Community Foundation can receive a 25% state tax credit in addition to federal deductions. Since credits are limited and awarded first-come, first-served, now is the time to act if you’d like to secure this benefit in 2025. Pairing this credit with your charitable goals creates a long-lasting impact while offering meaningful tax savings.
New Deduction for Non-Itemizers in 2026
Beginning in 2026, non-itemizers can claim a deduction of up to $1,000 (single) or $2,000 (joint) for cash gifts to qualifying public charities. While donor-advised funds and non-cash gifts are excluded, this provision could encourage younger donors and those new to philanthropy to participate in charitable giving. If you’re mentoring the next generation, share this opportunity with them—it can be a great first step into long-term philanthropy.
Qualified Charitable Distributions (QCDs)
If you’re over 70½, you can make a Qualified Charitable Distribution (QCD) of up to $108,000 per year directly from your IRA to eligible charities. QCDs reduce taxable income and can help satisfy required minimum distributions while also offering tax benefits unaffected by standard deduction changes. This makes QCDs a powerful tool under the OBBBA’s new rules, especially for those who want to give strategically in retirement.
The community foundation is happy to collaborate with you and your tax advisor as you explore ways to achieve your philanthropic goals under the new laws. We look forward to hearing from you!
