End-of-Year Charitable Giving by Wealthy Americans Accelerated in 2025

In some good news for nonprofits from the year 2025, Bloomberg reports that charitable giving among wealthy Americans accelerated at the end of the year. But there’s no reason to get too excited. After all, much of this was motivated by getting the best tax treatment for charitable giving in 2025 before the limitations under the OBBBA take effect this year.

The primary motivation for the accelerated giving at the end of last year is the implementation of two new restrictions for high-income earners starting in the 2026 tax year. First, for taxpayers in the top federal income tax bracket (currently 37%), the total value of all itemized deductions, including charitable contributions, will be capped at 35% of the donation’s value under the new law. Additionally, taxpayers who itemize will be ineligible to receive a deduction on donations that are 0.5% or less of their adjusted gross income. A similar 1% floor for corporate donations will also be introduced this year.

These changes primarily affect wealthy American who previously saved more in taxes by donating to charity due to higher marginal tax rates and a greater likelihood of itemizing deductions. The OBBBA will lower their effective tax break compared with the TCJA’s charitable deduction rules.

But the OBBBA also includes a new permanent, above-the-line deduction for non-itemizers (i.e., standard deduction filers), allowing these taxpayers to deduct up to $1,000 (or $2,000 for married couples) in case donations starting in 2026. While it remains to be seen if this provision in the OBBBA will have the effect of spurring charitable giving among Americans of average means, it seems entirely possible that charitable giving among the wealthiest Americans could decline in 2026 from 2025 levels.

CJR