How to Maximize Your 2025 Gift
If you care about supporting College of the Desert students, now may be the perfect time to think strategically about your philanthropy. Upcoming changes to federal tax law could affect how charitable deductions work starting in 2026. Fortunately, there’s a way to maintain, even enhance your impact while keeping more of your tax benefits.
It’s called “bunching.”
A Bunch of Reasons Why “Bunching” Makes Sense NOW
The One Big Beautiful Bill Act (H.R. 1) introduces several changes that directly affect charitable giving. It starts with next year’s taxes, 2026.
There’s a new adjusted gross income (AGI) floor. Donors must give more than 0.5% of their AGI before any gifts qualify for deduction. There’s also a reduced deduction rate. The maximum tax benefit from charitable gifts will be capped at 35%, even for those in higher tax brackets.
These adjustments mean smaller or routine cash gifts may yield less tax advantage starting in 2026. That said, 2025 is under the old rules. There’s no floor, there are full deductions at your marginal rate, and you have the ability to carry forward any excess contributions.
It means by combining multiple years of giving, into one larger 2025 gift, you could secure higher deductibility before the new limitations take effect.
What “Bunching” Looks Like
Let’s say you typically donate $100,000 each year. By combining two or three years’ worth of gifts into 2025, your deductions can rise well above the standard threshold, allowing you to capture more tax benefit this year, as well as maintain your philanthropic rhythm in future years.
One smart way to do this is by contributing to a Donor-Advised Fund (DAF) in 2025. You’ll receive your full deduction now but retain flexibility to distribute funds to College of the Desert Foundation (and other nonprofits) over time.
For donors age 65 and older, shifting the timing of your giving might even free up additional cash flow, allowing you to join the President’s Circle or support urgent College priorities.
Talk to Your Tax Advisor
Every donor’s situation is different. We strongly recommend you discuss specific tax and income circumstances with your tax advisor. That’s the best way to determine if bunching contributions in 2025 will deliver meaningful tax benefits.
Our team at the College of the Desert Foundation is available to collaborate with your financial and legal advisors. We can help –
- Model different giving and timing scenarios
- Structure contributions through a Donor-Advised Fund
- Help ensure your gifts continue to make the greatest possible impact
Give Smart Today. Empower Students for Tomorrow.
Your generosity already changes lives. While the tax landscape will shift, your commitment to student success doesn’t have to. Together, we can help you donate strategically while maximizing every dollar’s impact on the College of the Desert community.
Use the donate button below or contact Foundation Executive Director, Catherine Abbott, at 760.565.4869 or at cabbott@collegeofthedesert.edu.
