Here’s How They Might Affect Your Year-End Fundraising Campaign
In the past month, several of Beancount’s nonprofit clients requested input on how their year-end fundraising strategy should account for 2025 changes to the tax law. In response, we developed a primer for how to talk taxes with your donors during the year-end giving season.
The bottom line: No one gives just for the tax break. Your mission and the impact of their gift are the primary motivators. However, tax-informed conversations can impact the timing and volume of contributions.
Remember, your role is to raise awareness, not to give tax advice. When you share general information, always encourage your donors to check with their tax advisor. When you use the messages in the primer, always have your accountant or legal counsel review them before sharing.
Here’s What Changed
Giving is now easier and more rewarding for smaller donors. But larger donors need to plan better.
Donors who don’t itemize can now deduct up to $1,000 ($2,000 if married and filing jointly) in gifts of money, on top of the standard deduction. In the recent past, their gifts gave them no tax benefit.
Donors who itemize now get a deduction only for giving above 0.5% of their income. For someone earning $200,000, the first $1,000 they give in a year doesn’t count.
What To Say to Your Donors
For Donors Who Don’t Itemize
Most people take the standard deduction rather than itemizing. That often includes renters and people without a mortgage. It can also include some higher-income homeowners, because the deduction for state and local taxes shrinks for high earners, which makes itemizing less worthwhile for them.
Copy and adapt this:
“Good news for 2026: even if you take the standard deduction, you may be able to deduct up to $1,000 in gifts to charity ($2,000 if married filing jointly). Gifts of money count, whether by check, credit or debit card, online payment, bank transfer, or payment app. Gifts of stock, goods, or other property do not qualify for this deduction. Your year-end gift can do double duty.”
GOOD TO KNOW
- This deduction is on top of the standard deduction. It isn’t available to donors who itemize.
- Gifts to donor-advised funds don’t qualify.
For Donors Who Itemize
Donors who itemize are often homeowners and higher earners. Their charitable deduction is now a little less of a benefit than before, because they only get a deduction for giving above 0.5% of their income, and that applies every year. So many will benefit from giving a larger amount every few years rather than a smaller amount every year. This is called “bunching.”
A donor who bunches can give you the full amount directly. That’s the best outcome for you, because the money arrives now, and the donor can still direct how it’s used, such as to a specific program or over several years. A donor who wants to keep control over timing can use a donor-advised fund instead. They take the deduction now and recommend grants to you over time.
Copy and adapt this:
“Starting in 2026, itemized charitable deductions count only for giving above 0.5% of your income. Because this applies each year, combining several years of giving into one larger gift can help. If you choose to give a larger gift to [Org] now, you can still shape how it’s used. You can direct it to a specific program, ask that it be used over several years, or set the timing that works for you. We’re glad to put your wishes in writing. Please check with your tax advisor to see if this approach fits your situation.”
Or this:
“If you’d like to combine several years of giving for tax purposes but prefer to decide later when and where your gifts go, a donor-advised fund may help. You contribute to the fund this year and take the deduction now, then recommend grants to [Org] and other causes you care about in the years ahead. Please check with your tax advisor to see if this fits your situation.”
GOOD TO KNOW
- Use the general version for most donors. Save the donor-advised fund version for donors you know want to keep control over timing and recipients.
- Expect lumpy giving. Some donors will skip a year or two, then give a larger gift. Don’t read that as lapsed support.
- In the years in between, these donors may take the standard deduction and still qualify for the $1,000/$2,000 deduction.
Learn What to Say to Older Donors, Donors with Stock, and Legacy Donors
In the full Year-End Giving Primer, we go over key messages for other types of donors:
- Donors age 70.5 and older with IRAs
- Donors with Stock
- Legacy Donors
Download the full guide to learn about how to communicate with these types of donors about how to be strategic with their charitable gifts and taxes at year end.
This article is for general informational purposes only and does not constitute professional accounting, tax, or legal advice. Tax laws, regulations, and accounting standards change frequently, and the application of rules can vary based on your organization’s specific facts and circumstances. Before acting on anything you read here, consult a qualified professional who can advise you based on your situation.
