Atlanta Jewish Foundation Giving Tips
November 13th, 2025
As we enter 2026, new legislation – the One Big Beautiful Bill Act (OBBBA) – is poised to reshape the philanthropic landscape in ways that demand attention and action from donors. This is a moment to recalibrate, reimagine, and recommit.
What Is the One Big Beautiful Bill?
OBBBA introduces sweeping changes to charitable tax deductions, many of which take effect in 2026. Key changes affecting charitable giving include:
- Above-the-Line Deduction for Non-Itemizers: Starting in 2026, taxpayers who do not itemize can deduct up to $1,000 (single) or $2,000 (joint) in cash gifts to qualified charities – donor advised funds (DAFs) are excluded.
- New Floor for Itemized Deductions: Itemizers can only deduct charitable gifts that exceed 0.5% of their adjusted gross income (AGI).
- Cap on Tax Benefits for High-Income Donors: Those in the 37% tax bracket will see their charitable deduction capped at 35% of the gift’s value.
How the New Legislation Affects Donors
With these upcoming changes on the horizon, now is the time for donors to get strategic with their giving. Contributing to your donor-advised fund or opening a new DAF before the end of 2025 is the easiest way to maximize both tax savings and charitable impact.
What is a Donor-Advised Fund?
A donor-advised fund, or DAF, is a simple and powerful way to manage your philanthropy. Think of it as your personal Tzedakah box – a charitable giving account that lets you add funds, receive a tax deduction, invest and grow your charitable dollars, and donate to your favorite charities – all from one secure online portal.
Why are DAFs the Best Solution for Your 2025 Charitable Giving?
There are many benefits to opening or funding a donor-advised fund, especially this year.
1. Accelerate Tax Benefits by Opening a DAF with Cash or Appreciated Securities
You can fund a DAF with cash, wire, or appreciated assets (Publicly traded stocks, real estate, or other investments) and receive an immediate tax deduction for your contribution. If you use stock held for more than one year, you will receive a double benefit by avoiding capital gains taxes on the appreciation and receive a charitable deduction for the full market value of the stock.
Michael Merlin, Vice Chair of the Atlanta Jewish Foundation, offers great advice: “Let’s say this year I sold a piece of property and had a big capital gain. I might need more of a tax deduction than usual. I can put more into my donor-advised fund and get that deduction, without having to donate it right then and there. Having a DAF gives me the ability to be much more strategic than just writing a check.”
Already have a DAF? Contribute to your existing fund before year-end, or involve your children and grandchildren in Jewish philanthropy by opening a L’dor Vador fund with a minimum contribution of only $1000.
2. Preserve Full Deductibility While It’s Still Available
Under current tax law, donors can deduct up to 60% of their AGI for cash gifts to public charities, including DAFs. Starting in 2026, OBBBA introduces a new 0.5% AGI floor for itemized deductions, meaning the first 0.5% of your charitable giving will not be deductible. That is a subtle but permanent cut on your possible tax benefit. By contributing to a DAF in 2025, you avoid that floor entirely and maximize your deduction under today’s more generous rules. Don’t miss the deadlines! See the 2025 year-end guidelines here.
3. Avoid the New Cap on Deduction Value for High Earners
If you are in the top tax bracket, the value of your charitable deduction will drop from 37% to 35% under OBBBA. That may not sound dramatic, but it adds up – especially for large gifts. A $50,000 donation in 2025 could yield $18,500 in tax savings; the same gift in 2026 would save just $17,500. Contribute now to lock in the higher deduction rate before it’s gone.
4. Bunching Works Best Before the Rules Change
“Bunching” multiple years of giving into a single DAF contribution helps you exceed the itemized deduction threshold and optimize your tax benefit. With the new 0.5% AGI floor and deduction cap kicking in next year, bunching in 2025 is more effective than waiting until 2026, when part of your gift may be disallowed or lost.
Rachel Rosner, the Atlanta Jewish Foundation’s Endowment and Fiduciary Review Officer, recommends outlining a general 5-year giving plan, and, if possible, investing them in your fund now to maximize tax benefits and potential investment growth.
5. Secure Flexibility for Future Giving
Donor advised funds let you contribute now and decide later which organizations to support. Approximately 75% of grants sent out by Atlanta Jewish Foundation donors goes to Jewish causes – including synagogues, schools, summer camps, and other nonprofits in Atlanta, Israel, and globally. Our DAF holders also support broader-community causes like food insecurity, mental health, animal rights, medical research and more. By funding your DAF in 2025, you lock in today’s tax benefits while preserving the freedom to give thoughtfully and flexibly over time.
Other Ways to Give
If you are 70½ or older, you can transfer up to $108,000 (or $216,000 for married couples) tax-free from your IRA directly to a qualified charity – like the Jewish Federation’s Annual Campaign. This QCD (Qualified Charitable Contribution) gift must go directly to the nonprofit and may not go to a donor-advised fund, supporting organization, or private foundation.
Thinking long-term? You can also name Federation as a beneficiary of your IRA or open a perpetual endowment to create a legacy. And, with a $108,000 endowment you can establish a LOJE or PACE – the same amount as the maximum tax-free contribution!
Whatever your giving method, now is the time to plant the seeds of Tzedakah and strengthen our community. Reach out to our team or consult your own tax professional to determine which strategies best fit your situation.
For more information about opening a Donor Advised Fund with Atlanta Jewish Foundation please contact Tova Baruch tbaruch@jewishatlanta.org or call 404.436.0089