With all the buzz surrounding the One Big Beautiful Bill Act (OBBBA), what’s the verdict for philanthropic clients? Does it help or hurt their charitable giving? The answer: it depends. While some headlines estimate the OBBBA could generate up to $74 billion in additional gifts to nonprofits over the next decade, largely through the new deduction for non-itemizers available starting in 2026, the strategies your clients use may need to change with the new law.

Charitable bunching is an especially valuable technique to help clients maximize their tax benefits and community impact as the rules evolve. “Bunching” means combining several years’ worth of contributions into a single tax year to exceed the standard deduction and maximize itemized deductions. Here’s why 2025 could be a banner year for bunching:  

• The OBBBA increases the standard deduction in 2025 to $15,750 for single filers and $31,500 for married couples filing jointly. So, generally speaking, your clients would need to increase their itemized deductions (including charitable donations) over previous years to exceed the standard deduction. 
• 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 new state and local tax deduction allowances (subscriptions required to the Wall Street Journal). 
• Beginning with the 2026 tax year, taxpayers who itemize can only deduct charitable contributions that exceed 0.5% of their adjusted gross income (AGI)—so the first 0.5% of AGI in donations provides no tax benefit.
• What’s more, starting in 2026, for clients in the 37% marginal tax bracket, the charitable deduction benefit is effectively capped at 35%, meaning a donation only reduces taxable income at that lower rate—even though the client’s top rate remains 37%. 

That’s why now is the time to start talking with your charitable clients about the advantages of frontloading charitable donations in 2025, including through a donor-advised fund at the community foundation. Clients can make multiple years’ worth of charitable contributions this year before the new laws kick in, and then support favorite charities out of that donor-advised fund over the next several years. 

Please reach out to our team to set your clients’ strategies in motion. Our team makes charitable giving easy, flexible, and effective, including working with you and your clients to maximize tax benefits while also supporting the charities they love. We look forward to hearing from you!