As we approach year-end, savvy business owners and high-income individuals should consider one important strategic move: accelerating charitable donations in 2025. Why? Because starting in tax year 2026, the tax benefit for many large donors will shrink under new federal legislation.

Beginning with the 2026 tax year, donors who itemize will only be able to deduct charitable gifts that exceed 0.5% of their adjusted gross income (AGI). Further, the tax value of itemized charitable deductions for top-rate taxpayers will drop from the current marginal rate (37 %) to about 35 %. In short: less deduction benefit.

For a business-owner or high-income individual who typically gives $50,000 or plus annually, the difference in tax savings between donating in 2025 vs waiting for 2026 can be thousands of dollars—or more.

What to do now:

  1. Review your projected 2025 income and itemizable deductions.
  2. If itemizing, consider donating before December 31, 2025, to lock in current deduction rules.
  3. Consider using a donor-advised fund if you want to give now but distribute later.
  4. Let your CPA (that’s us) coordinate this charitable giving decision alongside your business tax-planning—bonuses, asset sales, depreciation, etc.

At GG CPA Services, we’re keeping close tabs on these tax-law changes and helping our high-net-worth business-owner clients turn them into opportunity. If you’d like to model the tax impact of accelerating your giving, let’s schedule a review ASAP—time is limited.

Link  CNBC – Why top earners should make donations before 2026