By Nancy Grayson
President & CEO, Horizon Community Foundation of Northern Kentucky
đ horizoncfnky.org
As 2025 approaches its year-end, a wave of change is reshaping how individuals and families give, and how professional advisors like you can help them give more effectively. The recently passed Big Beautiful Bill Act (BBBA)brings sweeping reforms to the tax code that directly affect charitable giving strategies.
At Horizon Community Foundation, our mission is to unite resources, inspire generosity, and raise the quality of life in Northern Kentucky. We partner with advisors, attorneys, accountants, and wealth managers every day to help clients translate financial success into local impact.
Hereâs what you need to know to guide your clients through a smarter, more strategic giving season in 2025.
Key Charitable Giving Changes in the Big Beautiful Bill Act
Rather than focus on just a few provisions, we want to highlight the full scope of the Actâs changes that could affect your clientsâ decisions this year and beyond.
1. Expanded Standard DeductionâFewer Will Itemize
The BBBA makes permanent the elevated standard deduction ($15,750 for single filers and $31,500 for married couples in 2025), which means fewer taxpayers will itemizetheir deductionsâincluding charitable contributions.
đ§ Advisor Tip: Encourage clients to âbunchâ giftsin strategic years, using tools like Donor-Advised Funds (DAFs) to front-load charitable contributions and maximize tax deductibility in years when they exceed the itemization threshold.
2. Above-the-Line Charitable Deduction Returns in 2026
While not effective until next year, itâs worth noting: the BBBA introduces a new, modest above-the-line deduction for charitable giftsfor non-itemizers beginning in 2026â$1,000 (individual) or $2,000 (married couples). It wonât impact 2025 planning, but it sets a precedent and may help cultivate long-term giving habits.
3. New AGI Floor on Itemized Deductions
Starting in 2025, donors who itemize can only deduct charitable contributions exceeding 0.5% of their Adjusted Gross Income (AGI). This âfloorâ limits the deductibility of small gifts for higher-income earners.
đ§ Advisor Tip:Make sure clients are aware that only larger or bunched gifts will yield tax savings. For clients already committed to giving regularly, a DAF or other fund at Horizon can consolidate contributions for tax efficiency.
4. Cap on Charitable Deductions for High-Income Earners
A new cap reduces the total value of charitable deductions availableto top-bracket taxpayers. While still generous, this could lower the incentive to make very large one-time gifts solely for tax purposes.
đ§ Advisor Tip:For 2025 giving, encourage clients to take advantage of the higher cap on charitable deductions before the end of the calendar year. Clients can create a new DAF or other fund easily at Horizon, or contribute to an established fund.
5. Carry forward of Unused Deductions Up to 5 Years
To balance the new AGI floor and deduction caps, the BBBA allows donors to carry forward unused deductions for five years. This adds flexibility in multiyear giving plans.
đ§ Advisor Tip:Consider spreading large gifts across tax years or consolidating them now, depending on the clientâs cash flow and long-term philanthropic goals.
6. Permanent 60% AGI Limit for Cash Contributions
The 60% of AGI limit for cash contributions to qualifying public charities is now permanent, giving donors clarity and consistency in planning their giving levels.
đ§ Advisor Tip: For high-income donors, this opens space to make larger gifts in a single yearâespecially when paired with strategic asset-based gifts.
7. IRA Qualified Charitable Distributions (QCDs) Remain Valuable
Though not directly changed by BBBA, QCDsâtax-free distributions from IRAs to public charitiesâcontinue to be a tax-efficient tool for clients 70½ or older. With higher standard deductions, this remains one of the few ways retirees can reduce taxable income while giving.
đ§ Advisor Tip: Recommend using QCDs for gifts to Horizonâs Community Impact Fundor other eligible funds, such as funds that support specific, named charities.
8. Estate and Gift Tax Exemption Made Permanent
The BBBA makes the historically high estate and gift tax exemptions permanentâ$13.99 million (individual) or $27.98 million (married) in 2025âadjusted annually for inflation.
đ§ Advisor Tip: While this reduces the urgency to gift large assets for estate-tax reasons, it also allows for longer-term legacy planningthrough charitable bequests, testamentary funds, and family philanthropy structures.
đŻ How Horizon Can Support You and Your Clients
We work alongside advisors every day to make philanthropy easy, efficient, and impactful.
Hereâs how we help:
¡ Donor-Advised Funds (DAFs):Flexible vehicles for clients who want to give now and recommend grants later
¡ Named and Endowed Funds:Permanent funds that support specific causes, nonprofits, or areas of interest in NKY
¡ Community Impact Fund:A powerful way to support responsive, local grantmaking across Northern Kentucky
¡ Customized Gift Structuring:We help you design gifts involving QCDs, appreciated stock, real estate, and more
We take pride in being an uncommon partnerâoffering insight, flexibility, and stewardship to help your clients give with confidence.
đ Letâs Plan Together Before Year-End
2025âs charitable landscape is more nuanced than ever. Tax law is just one part of the equation. Your clients are looking for clarity, flexibility, and trusted partners to help them make a lasting difference.
Whether theyâre giving for the first time or managing a multi-generational philanthropic plan, Horizon is here to help.
đŠ Contact us to:
¡      Schedule a client consultation
¡      Request sample fund documents
¡      Explore giving opportunities tailored to Northern Kentucky
đ§ Email: info@horizoncfnky.org đ Website: www.horizoncfnky.org
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