Deyna Rouse, Assistant Professor of Practice, Creighton’s Heider College of Business
Vanessa Denney, Vice President of Donor & Philanthropic Services, Omaha Community Foundation
With the passage of Public Law 119-21, known as the One Big Beautiful Bill Act (OBBBA), several major changes to the tax treatment of charitable contributions take effect in 2026. That makes 2025 the perfect year to review your giving strategy and maximize the after-tax impact of your generosity. Here are two powerful tools to consider before year-end.
Qualified Charitable Distributions (QCDs) from IRAs
If you’re age 70½ or older and hold an Individual Retirement Account (IRA), you can make a Qualified Charitable Distribution (QCD) of up to $108,000 in 2025 directly to a qualified charity. Doing so keeps that amount out of your taxable income, which can lower your Adjusted Gross Income (AGI) and help preserve other tax benefits that phase out at higher income levels.
Although QCDs don’t generate an additional charitable deduction, the ability to exclude the distribution from AGI often provides a greater overall tax advantage—especially when the funds aren’t needed for living expenses.
OCF offers multiple vehicles for QCDs including:
Designated Funds: allows donors to support specific nonprofits or causes over time, with the Foundation managing annual grants to ensure the original intent of the gift is achieved.
Field of Interest Fund: allows donors to target their gifts to address a specific need in the community (geriatric care, the arts, food insecurity, etc.) and our grant committee finds projects and groups that are making an impact in that area.
The “Bunching” Strategy for Charitable Gifts
The current standard deduction for 2025, the amount available to reduce taxable income without any specific spending, is $31,500 for married couples filing jointly and $15,750 for single filers. This means many taxpayers will no longer itemize deductions, potentially reducing the tax benefit of annual charitable donations.
If your typical yearly giving brings you close to the standard deduction threshold, consider “bunching” donations—combining two years of charitable contributions into one tax year. By doubling up gifts in 2025, you may exceed the standard deduction and itemize, maximizing your deduction in one year and taking the larger standard deduction the next.
This approach is particularly effective for those without mortgage interest deductions, who are less likely to itemize. With another 2% increase to the standard deduction expected in 2026, timing your giving at the end of 2025 could make your dollars go further.
A fund with OCF gives you time to distribute your donations on your own timeline. You can take the bunching deduction for 2025 and then decide over time which organizations to grant your funds to. Our Donor Advisors can strategize with you to support areas of greatest needs in the community or make gifts to organizations that are already important to you.
OCF Makes Charitable Giving Simple, Even When Laws Change
The One Big Beautiful Bill Act is reshaping how individuals, families, and financial advisors think about charitable giving. Planning now, before the 2026 changes take effect, can help you maximize tax efficiency while living your values through charitable giving.
We at OCF can collaborate closely with you and your financial advisor, attorney, or CPA to design giving strategies that meet both your personal and financial objectives. With numerous giving vehicles, our expertise ensures that every charitable dollar works harder for you and for our community.