(712) 293-3303
office@siouxlandcommunityfoundation.org
BLOG & NEWS
CONTACT
LOGIN
LOGIN
Menu

Sifting through it: What’s on the legislative menu that could impact charitable giving?

by SCF Team | February 11, 2025 | Siouxland Community Foundation Blog, Advisor Resources |

A new year and administration bring potential tax changes, making it essential to stay informed for your charitable clients.

At the top of our watchlist is the expiring Tax Cuts and Jobs Act (TCJA) of 2017. This legislation, set to sunset at the end of 2025, significantly impacted charitable giving.

Key TCJA effects:

  • Lowered income tax rates, reducing the tax savings per dollar donated.
  • Doubled the standard deduction ($15,000 for single filers, $30,000 for married couples in 2025), leading to fewer taxpayers itemizing deductions and a decline in charitable giving—estimated at $20 billion in 2018.
  • Doubled the estate tax exemption ($13.99 million per person in 2025), reducing tax-driven charitable bequests among affluent clients.

While tax policy influences charitable giving, most donors are motivated by personal values, religious beliefs, and community impact rather than financial benefits. Even with tax incentives, philanthropy is about giving, not financial gain. Your clients who give to charity benefit emotionally from their gifts, and of course they like knowing that they are helping others and strengthening community ties.

What’s Next? Three Possible Tax Outcomes in 2025:

  • TCJA Extended – Charitable giving trends remain steady, with fewer itemizers and tax-driven incentives mostly benefiting ultra-wealthy donors.
  • TCJA Expires – More taxpayers may return to itemizing, boosting charitable giving, while a lower estate tax exemption could encourage legacy donations.
  • New Tax Legislation – Proposals like the Charitable Act could create universal charitable deductions, expanding tax benefits across all income levels.
    • For an uplifting read that includes compelling points about the role of the nonprofit sector and the history of charitable giving, check out this letter that was issued late last year to congressional leaders urging them to enact a charitable deduction for taxpayers who do not itemize.

Tax developments will shape giving strategies, and we’re here to help. Contact us to discuss client-specific planning and maximize charitable impact—with or without tax incentives.