For many individuals and families in Florida, including us at Blue Marlin charitable giving and tithing are core expressions of values and legacy. With the tax landscape shifting under the One Big Beautiful Bill Act (OBBBA), it is important to understand how the new rules affect your giving strategy in 2025 and beyond.
Even though the law introduces changes to deductions, SALT planning, and how itemizing works, charitable giving remains one of the most powerful tools for shaping long term impact. The key is to use the right structure at the right time.
Below is a clear breakdown of how charitable giving, tithing, and QCDs work under the 2025 rules, along with one key change beginning in 2026.
Charitable Giving in 2025: What Changed and What You Need to Know
Higher SALT Cap Makes Itemizing More Accessible
OBBBA raises the SALT deduction cap to 40,000 for 2025 through 2029. Since charitable giving is only deductible if you itemize, this expanded SALT cap can help more families exceed the standard deduction.
For Florida residents, SALT deductions usually come from property taxes on primary homes, vacation properties, and out of state holdings. When combined with charitable giving, more households may find itemizing beneficial in 2025.
Important: In 2025 You Must Itemize to Deduct Charitable Gifts
Under current federal law, there is no charitable deduction available to taxpayers who use the standard deduction in 2025. The temporary above the line deduction that existed during the pandemic expired after 2021 and was not reinstated.
This means:
- Tithing, monthly giving, or moderate donations may produce no tax benefit unless you itemize
- Large giving years, strategic timing, donor advised funds, and SALT bundling become more valuable
Your generosity still matters. You just want to structure it in the most efficient way.
Stable Tax Brackets Strengthen Giving Strategies
OBBBA maintains the lower tax brackets originally introduced in the 2017 reform. Predictable brackets give high income families greater control when planning charitable gifts around capital gains, business income, real estate sales, and other large tax events.
The Best Charitable Strategies for 2025
1. Bundling Charitable Gifts To Maximize Itemizing
If your annual giving does not exceed the standard deduction by itself, consider making several years of gifts in one tax year. When combined with the higher SALT cap and mortgage interest, this can allow you to unlock a charitable deduction that would not otherwise be available.
This strategy is especially effective for individuals and families who tithe consistently.
2. Donor Advised Funds (DAFs)
A donor advised fund allows you to make one large tax deductible contribution in 2025 and then distribute gifts to churches and charities over time.
This can help manage:
- High income years
- Capital gain events
- Business liquidity events
DAFs are a powerful planning tool for clients who want flexibility and long term giving control.
3. Donating Appreciated Assets
Gifting appreciated stock, real estate, or cryptocurrency is one of the most tax efficient ways to give. You avoid capital gains tax and, if you itemize, receive a deduction for the full fair market value.
This strategy remains fully available under OBBBA.
4. Coordinating Giving with Business or Real Estate Transactions
If you expect a significant gain from selling a business or property, charitable planning can help reduce the taxable impact. Examples include:
- Contributing appreciated units or shares to a donor advised fund
- Making large charitable gifts before year end
- Structuring charitable giving around capital gains
High income events often present the best opportunities for intentional philanthropy.
Qualified Charitable Distributions (QCDs): A Key Tool for 2025
For clients age 70 1/2 or older, Qualified Charitable Distributions (QCDs) are one of the most effective charitable planning strategies available.
A QCD allows you to send money directly from your IRA to a qualified charity. The distribution is excluded from taxable income, and it can satisfy all or part of your Required Minimum Distribution (RMD) once you reach age 73.
Why QCDs Matter in 2025
Since charitable deductions in 2025 only apply if you itemize, QCDs offer a rare benefit:
QCDs reduce taxable income even if you do not itemize.
This can also help:
- Lower Medicare IRMAA surcharges
- Reduce the taxable portion of Social Security
- Avoid bracket creeping
- Manage exposure to the Net Investment Income Tax (NIIT)
For retirees who give regularly, QCDs often create the strongest tax outcome.
QCD Planning Tips
- The distribution must go directly from the IRA custodian to the charity
- QCDs cannot be made to donor advised funds or private foundations
- Consider using QCDs to fund annual tithing or recurring giving
- Plan QCDs early in the year to avoid RMD timing issues
QCDs remain a cornerstone of charitable planning for retirees in 2025.
Looking Ahead: A New Charitable Deduction Begins in 2026
Starting with the 2026 tax year, OBBBA introduces a small charitable deduction for taxpayers who claim the standard deduction. Individuals will be able to deduct up to:
- 1,000 for single filers
- 2,000 for married filing jointly
for cash gifts to qualifying public charities.
This new deduction does not replace the value of itemizing or the benefits of QCDs, but it does restore a modest incentive for households that give consistently.
Final Thoughts
Charitable giving and tithing in 2025 require more intentional planning than in recent years. With new SALT limits, stable tax brackets, and itemization rules, high net worth Florida families will benefit from aligning their charitable strategy with their broader tax, estate, and financial picture.
QCDs offer unmatched efficiency for retirees, while donor advised funds, asset-based gifts and bundled giving continue to unlock meaningful tax benefits for others.
At Blue Marlin Accounting, we help clients integrate charitable giving with tax planning and long-term wealth strategy. If you want to review your charitable plan under the new rules or prepare for the changes coming in 2026, we are here to help you give with intention and clarity.
