What Recent Tax Law Changes Mean for Your Year-End Charitable Giving

By Paul Strella, OGFN Donor and Retired Tax Attorney

My name is Paul. I am a donor and supporter of the Old-Growth Forest Network (OGFN), as well as a retired tax lawyer based in Washington, DC.

These days, I spend much of my free time traveling to western Maryland to visit my grandson, walking through the region’s older forests, including Swallow Falls State Park, and volunteering with AARP Foundation Tax-Aide to help individuals and families prepare their tax returns.

Earlier this year, my wife and I also had the pleasure of joining OGFN on a guided paddle through the old-growth forests of Dragon Run in eastern Virginia.

The experience was unforgettable, not only for its beauty, but for how clearly it demonstrated the role intact forests play in protecting the health of the Chesapeake Bay.

As my wife and I began planning our year-end charitable giving, I took a closer look at several recent and upcoming changes in federal tax law. I wanted to share a brief overview of these changes and how they may affect charitable contributions to organizations like the Old-Growth Forest Network.

This post is for general informational purposes only and should not be considered personal tax advice. Individual situations vary, and you should consult your own tax or financial advisor.

Key Tax Law Changes to Be Aware Of

1. Higher SALT Deduction Cap in 2025

For 2025, the deduction limit for state and local taxes (SALT) has increased from $10,000 to $40,000, though it phases back down to $10,000 for some higher-income taxpayers.

For many people, this change means itemizing deductions may once again make sense. If you did not itemize last year but can in 2025, your charitable contributions may provide greater tax savings. In practical terms, a $1,000 gift in 2025 may cost you less after taxes than it did in previous years. This is one reason my wife and I are considering increasing our support for OGFN this year.

2. New Itemized Deduction Floor Beginning in 2026

Beginning in 2026, itemized deductions will only be allowed to the extent they exceed 0.5 percent of your adjusted gross income.

For example, someone with $200,000 in income would lose the first $1,000 of itemized deductions. This change does not apply in 2025, which may make giving this year more advantageous for some donors.

3. Reduced Deduction Value for High-Income Taxpayers in 2026

Also starting in 2026, the value of itemized deductions for taxpayers in the highest tax bracket will be capped at 35 percent, rather than the current 37 percent.

As an example, a $10,000 charitable gift made in 2025 could reduce taxes by $3,700 for someone in the top bracket. The same gift made in 2026 would reduce taxes by $3,500.

What You May Want to Consider Before December 31

Given these upcoming changes, there are a few planning considerations worth reviewing:

• Opening a donor-advised fund in 2025 may be more advantageous than waiting until 2026, particularly for those who may not otherwise itemize next year or who are in the highest tax bracket.

• Accelerating charitable giving into 2025 may increase the tax efficiency of your contributions, especially if you expect to itemize this year but not next.

• Reevaluating your giving plan in light of the higher SALT deduction cap may reveal opportunities to give more at a lower after-tax cost.

Again, these decisions depend on your personal financial situation, so professional advice is important.

A Final Thought

Tax considerations should never be the sole reason to give, but understanding the rules can help you give more thoughtfully and with greater confidence. My support for the Old-Growth Forest Network is rooted in a belief that protecting our oldest forests is essential for ecological health, climate resilience, and future generations.

If recent tax law changes make it easier or more efficient for you to support this work, it may be worth exploring those options before the end of the year.

I hope this overview is helpful as you plan your year-end giving.

Sincerely,

Paul Strella
Former Tax Consultant, Mercer (Washington, DC)
OGFN Donor and Supporter