How does the One Big Beautiful Bill Act impact your tax-smart giving strategies?
September 17, 2025
The One Big Beautiful Bill Act (OBBA) was signed into law in July. There are some changes that affect charitable giving, and the Foundation is ready to work with you and your advisors to make tax-smart decisions that benefit you and the nonprofits important to you.
The standard deduction will be raised in 2025 to:
$15,750 for single filers
$31,500 for married couples
Includes additional deductions for taxpayers 65 and older
Why does this matter?
With a higher standard deduction, many taxpayers may no longer benefit from itemizing unless they "bunch" their charitable contributions into a single year. The Foundation offers Donor Advised Funds that are a good choice to "bunch" your donations this year.
What is bunching?
Combining multiple years of donations into one tax year to exceed the standard deduction threshold.
Enables taxpayers to itemize and maximize deductions in that year.
Example:
A client who normally gives $12,000/year could instead donate $36,000 this year to a Donor Advised Fund (DAF) at the Community Foundation.
This larger gift could make itemizing in 2025 worthwhile.
The client can then support favorite causes over time through their DAF, while taking the standard deduction in the future.
Why now?
Even with expanded state and local tax deductions, the higher standard deduction still impacts tax-motivated giving.
This is why strategic timing is essential.
Want to learn more?
Give us a call at (337) 491-6688 to schedule a visit and see how easy it is to open a DAF and make tax-smart decisions in 2025.