How Trump’s ‘big beautiful bill’ impacts your Giving Tuesday tax break
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If you plan to donate money on Giving Tuesday, you can benefit from a tax deduction. However, the latest changes that came into force upon the order of President Donald Trump “big beautiful bill” Financial experts say this could impact your savings.
Approximately 36.1 million US adults participated in Giving Tuesday 2024 with donations total $3.6 billionThat’s up from $3.1 billion in 2023, according to estimates from GivingTuesday Data Commons.
Despite the economic uncertainty in 2025, higher beings in donor-advised funds Continue supporting charity In the coming years, according to analysis by consulting firm RSM. Acting like a charitable checkbook, these funds allow donors to get an immediate tax deduction for their contributions and give the money to nonprofits over time.
If you’re getting ready to write a check on Giving Tuesday 2025 or before the end of the year, here are some key things you need to know about Trump’s tax law changes.
Wait until 2026 for smaller cash gifts
When filing a refund, you will receive the greater of the standard deduction – $15,750 for single filers in 2025 and $31,500 for married couples filing jointly in 2025, or your itemized tax deductions, which include deductions for charitable giving, state and local taxes, and medical expenses, among others.
the vast majority According to the latest IRS data, 50% of taxpayers use the standard deduction, preventing most people from claiming the charitable deduction.
But starting in 2026, Trump’s tax law added a new charitable tax deduction for non-taxpayers, up to $1,000 for singles and $2,000 for married couples filing jointly.
If you plan to donate cash in 2025 and don’t itemize deductions, “wait until next year,” said Thomas Gorczynski, registered agent based in Tempe, Arizona. An enrolled agent has a tax license to practice before the IRS.
High earners should donate more in 2025
Another change in 2026 affects high-income earners, who could see a smaller benefit cut thanks to Trump’s legislation.
After 2025, there is an itemized charitable deduction “floor” that allows tax deductions only if they exceed 0.5% of your adjusted gross income. Additionally, the new law limits the benefits of top filers Again, 37% income tax bracket from 2026.
Bob Petix, senior wealth strategist at Wells Fargo Asset and Investment Management, said high-income items “should seriously consider making this contribution in 2025 rather than 2026.”
Experts say one option is to “roll up” multiple annual gifts into 2025 through a donor-advised fund, which allows future gifts to be given to eligible charities of your choice. The strategy would provide an upfront charitable deduction for 2025 before the limits change in 2026.
