The One Big Beautiful Bill Act (OBBBA) has generated significant questions from attorneys, CPAs and financial advisors since becoming law on July 4, 2025. Here are three critical takeaways for charitable planning:
Tax advantages are temporary. While the OBBBA extended many favorable provisions, including the elevated estate tax exemption, future legislation will inevitably bring changes. Continue discussing charitable giving strategies with clients and remain prepared to adjust when laws change.
Act on 2025 opportunities. The OBBBA creates a critical window for clients who itemize deductions. Increased standard deductions in 2025, combined with upcoming floors and caps on charitable deductions starting in 2026, make "bunching" strategies using donor advised funds particularly valuable this year.
Fundamentals remain strong. Core strategies haven't changed. Appreciated stock gifts continue to offer superior tax benefits over cash donations. IRAs remain powerful charitable planning tools—naming a community foundation fund as an IRA beneficiary avoids both estate and income taxes. For clients 70½ and older, Qualified Charitable Distributions (QCDs) allow tax-free transfers up to $108,000 to qualified charities.
Contact our team for guidance on charitable giving strategies that align with current tax advantages.