
Big changes to federal tax law, ushered in by passage of the “One Big Beautiful Bill Act” this year, could make gift bundling a more appealing giving strategy to consider.
Gift bundling involves providing several years’ worth of support for your favorite causes or organizations through a single gift to a donor-advised fund. It enables you to lock in support to achieve your long-term charitable goals, while getting the full tax benefit this year.
Combining several years' worth of contributions into a single tax year enables some donors to exceed the new “standard deduction” and maximize their itemized deductions. Here’s why that could become a more attractive strategy:
- The new tax law increases the standard deduction in 2025 to $15,750 for single filers and $31,500 for married couples filing jointly. That means, generally speaking, tax filers would need to increase their itemized deductions (including charitable donations) over previous years to exceed the standard deduction.
- Beginning with the 2026 tax year, taxpayers who itemize can only deduct charitable contributions that exceed 0.5% of their adjusted gross income (AGI).
- Also, starting in 2026, for taxpayers 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%.
We encourage you to contact your professional advisor to discuss giving strategies that work best for you. Our team at the Community Foundation stands ready to work with you and your advisor to help navigate the evolving implications of the new tax law.
CLICK HERE TO LEARN MORE ABOUT THE NEW TAX LAW'S POTENTIAL REPERCUSSIONS ON PHILANTHROPY.
To learn more about partnering with the Community Foundation of Broward to create enduring impact, contact Vice President of Philanthropic Services Kelly Marmol at kmarmol@cfbroward.org or 954-761-9503.