For the 2025 tax year, the limits depend on what you donate and how you donate it. This is also a strategic year to maximize giving before stricter "floor" rules take effect in 2026.

1. Cash Contributions (Public Charities)

• Limit: You can deduct up to 60% of your Adjusted Gross Income (AGI).

• Strategy: If you donate more than 60%, the excess carries forward for up to 5 tax years.

2. Non-Cash Assets (Stocks, Real Estate)

• Limit: You can deduct up to 30% of your AGI for appreciated assets held longer than one year.

• Advantage: You generally avoid paying capital gains tax on the appreciation while still claiming a deduction for the full fair market value.

3. Qualified Charitable Distributions (QCDs)

• For IRA Owners Age 70½+: You can transfer up to $108,000 (2025 limit) directly from your IRA to a charity.

• Benefit: This counts toward your Required Minimum Distribution (RMD) but is excluded from your taxable income entirely, effectively bypassing the AGI percentage limits.

Why 2025 Matters: Starting in 2026, new tax laws will introduce a "Charitable Floor," meaning you may only be able to deduct contributions that exceed 0.5% of your income. We strongly recommend "bunching" multiple years of planned giving into 2025 to maximize your tax benefit under the current, more favorable rules.