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If you plan to donate money on Giving Tuesday, you can receive a tax deduction. But recent changes enacted by President Donald Trump’s “Big and Beautiful Bill” could impact savings, financial experts say.
Giving Tuesday Data Commons estimates that approximately 36.1 million U.S. adults will participate in Giving Tuesday in 2024, totaling $3.6 billion in donations, up from $3.1 billion in 2023.
Despite the economic uncertainty of 2025, large assets in donor-advised funds may continue to strengthen philanthropy, according to an analysis by consulting firm RSM. These funds act like a charity checkbook, allowing donors to receive an immediate tax deduction for their gifts and then use those funds to make grants to nonprofit organizations over time.
If you’re preparing to write a check on Giving Tuesday 2025 or before the end of the year, here are some important things to know about President Trump’s tax law changes.
Wait until 2026 for small cash gifts
When you file your return, you deduct the greater of the standard deduction ($15,750 for single filers in 2025, $31,500 for married couples filing jointly) or the itemized tax deduction, which includes deductions for charities, state and local taxes, medical expenses, and more.
According to the latest IRS data, the majority of taxpayers take the standard deduction, which means most people cannot claim a charitable deduction.
But starting in 2026, President Trump’s tax law will add a new charitable tax cut for non-item filers, worth up to $1,000 for single filers and $2,000 for married filers jointly.
If you plan to make a cash contribution in 2025 and don’t itemize your deductions, “wait until next year,” says Thomas Gorczynski, an enrolled agent based in Tempe, Arizona. Enrolled agents have a tax license to practice with the IRS.
High-income earners should donate more in 2025
Another change in 2026 will affect high-income earners whose charitable deductions could be reduced thanks to President Trump’s bill.
Starting in 2025, there will be a “floor” on itemized charitable deductions, allowing tax relief only if it exceeds 0.5% of adjusted gross income. Additionally, the new law also caps benefits for the top 37% of income tax filers starting in 2026.
Bob Pettix, senior wealth strategist at Wells Fargo Wealth and Investment Management, said high-income households should “seriously consider making that contribution in 2025 rather than 2026.”
One option, experts say, is to “bundle” multi-year gifts through 2025 through a donor-advised fund, which would allow them to give to any eligible charity of their choice in the future. The strategy would provide a prepayment deduction for charities in 2025 before the limit changes in 2026.
