Year-End Giving: Strategies, Trends, and Tax Insights for 2025
As the year draws to a close, charitable giving takes center stage for many Americans. Whether motivated by generosity, tradition, or strategic planning, December remains the most active month for philanthropy. Below, we explore why year-end giving matters, where contributions are going, and how you can make the most of tax-advantaged strategies under evolving laws.
Why December Matters for Giving
About one-third of all charitable contributions occur in December, driven by holiday spirit and year-end tax planning. Nonprofits often receive 17–31% of their annual online revenue in December, with 47% of that revenue arriving in the last week—and 20% on December 31 alone.¹
The reasons are both emotional and strategic:
- Emotional: December is synonymous with gratitude, family, and community. Many donors feel inspired to give back during the holiday season.
- Strategic: Contributions made by December 31 may offer tax advantages, creating incentives for individuals and businesses to act before year-end.
America Is a Generous Nation
Americans continue to lead in charitable giving. In 2024, total contributions exceeded $590 billion, a 6.3% increase from the prior year—the largest jump since 2021.²
Giving Tuesday, held the Tuesday after Thanksgiving, has become a global movement. In 2024, nonprofits raised a record $3.6 billion on Giving Tuesday—a 16% increase from 2023. This year, Giving Tuesday falls on December 2.
Who Is Contributing?
- Individuals: 66% of all giving (up 8.2% from the prior year)
- Foundations: 19%
- Bequests: 8%
- Corporations: 7%
The bequest category is expected to grow as the Great Wealth Transfer unfolds. Cerulli Associates projects $124 trillion in wealth transfers through 2048, with $18 trillion going to charity.³
Where Are Contributions Going?
In 2024, nearly half of charitable dollars supported:
- Religion (23%)
- Human Services (14%)
- Education (14%)
Other categories included Foundations (11%), Public-Society Benefit (11%), Health (10%), International Affairs (6%), Arts/Culture/Humanities (4%), and Environment/Animals (3%). The largest year-over-year increases were in Public-Society Benefits, International Affairs, and Education.
Choosing the Right Charity
With thousands of organizations seeking support, consider these steps:
- Research: Use resources like Charity Navigator, GuideStar, or the BBB Wise Giving Alliance.
- Align Values: Ensure the charity’s mission resonates with you and demonstrates measurable impact.
- Engage: Volunteer or participate in events to deepen your connection.
Tax Law Changes: The OBBB Act
Starting in 2026, the One Big Beautiful Bill Act (OBBB) introduces new rules:
- Non-Itemizers: Deduct up to $1,000 (single) or $2,000 (married filing jointly).
- Itemizers: Deductions apply only if contributions exceed 0.5% of AGI.⁴
- High Earners: Deduction value capped at 35% of contribution amount (e.g., $1,000 donation = $350 deduction).⁴
- Corporations: New 1% floor for charitable contributions.⁴
If you’re a high earner or business owner, these changes may impact your strategy. Consult your tax and financial professionals before making adjustments.
Tax-Advantaged Charitable Giving Strategies
Thoughtful planning can amplify your impact while optimizing tax benefits. Consider these approaches:
- Qualified Charitable Distributions (QCDs):
If you’re 70½ or older, donate up to $108,000 in 2025 from your IRA (or $216,000 for couples). QCDs may satisfy RMDs and are excluded from taxable income.⁵ - Donating Appreciated Securities:
Gift securities directly to avoid capital gains taxes. - Donating Depreciated Securities:
Recognize losses before donating to offset future gains. - Donor-Advised Funds (DAFs):
Contribute cash or assets for an immediate deduction and recommend grants to IRS-qualified charities.⁶ - Charitable Remainder Trusts (CRTs):
Donate assets, receive income for life or a term, then pass the remainder to charity. You can use up to $54,000 of a QCD for a one-time CRT donation.⁵ - Charitable Lead Trusts (CLTs):
Provide income to charities for a term, then transfer remaining assets to heirs—potentially reducing estate taxes.⁸ - Bundling Deductions:
Combine two years’ worth of contributions into one year to exceed the standard deduction threshold.⁹
Your Impact Is About Effectiveness and Timing
Philanthropy is most powerful when it aligns with your values and financial goals. If you’d like to explore strategies for 2025 and beyond, we’re here to help turn your charitable vision into action! Give us a call, today! 877-474-4350
Sources:
- DonorBox.org, August 21, 2025
https://donorbox.org/nonprofit-blog/end-of-year-giving-statistics?utm_source=chatgpt.com 2. The Benefactor Group, September 2025 - The BenefactorGroup.com, September 2025
https://benefactorgroup.com/givingusa2025/ - Cerulli.com, December 5, 2024
https://www.cerulli.com/press-releases/cerulli-anticipates-124-trillion-in-wealth-will-transfer-through-2048 - Fidelitycharitable.org, July 2025
https://www.fidelitycharitable.org/articles/obbb-tax-reform.html - Schwab.com, December 13, 2024. Once you reach age 73, you must begin taking the required minimum distributions from a traditional IRA in most circumstances. Withdrawals are taxed as ordinary income and, if taken before age 59½, may be subject to a 10% federal income tax penalty. Contributions to a traditional IRA may be fully or partially deductible, depending on your adjusted gross income.
https://www.schwab.com/learn/story/reducing-rmds-with-qcds?msockid=37a2e58496ac672b39a4f4af9742667d - Fidelity.com, September 2025
https://www.fidelitycharitable.org/guidance/philanthropy/what-is-a-donor-advised-fund.html?immid=PCD&account=&campaign=31354684&adgroup=2956185337&keyword=donor%20advised%20funds%20meaning&msclkid=a23a27257d9a141c207b4ff5fafc3d9c&utm_source=bing&utm_medium=cpc&utm_campaign=DAF_Primer_Bing&utm_term=donor%20advised%20funds%20meaning&utm_content=Donor_Advised - Fidelityharitable.org, 2025
https://www.fidelitycharitable.org/guidance/charitable-tax-strategies/bunching-charitable-donations.html - AccountingInsights.org, February 8, 2025
https://accountinginsights.org/what-is-a-charitable-lead-trust-and-how-does-it-work/ - SturgillTurner.com, September 2025
https://www.sturgillturner.com/our-insights/charitable-giving-tax-efficient-planning-2025