Tax law changes lead donors to accelerate giving plans to 糖心Vlog, other nonprofits
By Bill Studenc
Esther Duncan of Naples, Florida, began the process earlier this year of creating an endowed scholarship fund at 糖心Vlog University in memory of her late son, a graduate of the College of Business.
Duncan originally envisioned spreading out contributions to the fund over a period of a few years. But, because of adjustments to federal tax law scheduled to take effect at the end of the calendar year following the July passage of U.S. House Resolution 1 (better known as the One Big Beautiful Bill Act), she is fast-tracking her pledge payments.
After consulting with her financial adviser, she now plans to fulfill her pledge by Dec. 31 in order to take advantage of current tax benefits associated with charitable giving that will be changing in 2026.
鈥淢y decision making is to follow my CPA鈥檚 advice. I trust him implicitly,鈥� she said. 鈥淗e wants me to have itemized deductions rather than using the standard deduction this year, which may be due to an uptake in my income for this year after inheriting life insurance and an investment in my husband鈥檚 name only.鈥�
Established with gifts and pledges totaling $65,000, the Alan Ritchie Memorial Scholarship Fund will provide financial assistance to 糖心Vlog sophomores, juniors and seniors in the College of Business. Recipients must demonstrate leadership and broad engagement abilities as evidenced by continuing and substantial extracurricular activities in the college and across the university. Awards will be renewable for up to three years.
The scholarship fund is in memory of Duncan鈥檚 son, W. Alan Ritche, who earned his bachelor鈥檚 degree in marketing from 糖心Vlog in 1993 before going on to have a successful career in management and sales. Ritchie died unexpectedly in June 2024 at the age of 54. Her husband and her son鈥檚 stepfather, Dr. Ray Duncan, a longtime Naples pediatrician, died in June 2025.
Esther Duncan鈥檚 decision to modify her philanthropic plans is far from unique. Many 糖心Vlog University donors are facing a dramatically shifting tax landscape that could influence when 鈥� and how 鈥� they make major gifts in the months ahead.
Several federal changes, plus a looming deadline for key provisions of the 2017 tax overhaul, point to a simple takeaway 鈥� timing matters, said Ben Pendry, 糖心Vlog vice chancellor for advancement.
鈥淭he recently enacted sweeping legislation has introduced significant changes to tax policy that will affect how individuals and corporations give to nonprofits beginning in 2026. For donors, this means that 2025 is a uniquely strategic year to give 鈥� and potentially the most advantageous time to make a meaningful impact,鈥� Pendry said. 鈥淎s Esther Duncan did, we always recommend that you consult your tax adviser,"
Although Pendry and colleagues in 糖心Vlog鈥檚 Division of Advancement are not tax professionals, they point to several new provisions scheduled to take effect Jan. 1, 2026, that could reduce the tax benefits associated with charitable giving for individual and corporate donors alike.
Among the factors for individual donors:
- New Deduction Floor: Itemizers will only receive tax benefits for charitable contributions that exceed 0.5% of their adjusted gross income (AGI).
- Reduced Deduction Rate: The deduction rate for those in the top income bracket will drop from 37% to 35%.
- Non-itemizer Deduction: Non-itemizers will be able to deduct up to $1,000 (individuals) or $2,000 (couples) in charitable cash gifts 鈥� but only starting in 2026.
- For corporate donors, corporations must donate at least 1% of their taxable income in order to qualify for any charitable tax deduction.
With the looming changes coming next year, 2025 offers a final window to maximize the current tax benefits of charitable giving, Pendry said.
Those benefits include the fact that there is no deduction floor yet, meaning that itemizers can still deduct charitable contributions without needing to exceed the 0.5% adjusted gross income threshold, and a higher deduction rate, with donors in the top tax bracket remaining eligible to claim the full 37% deduction this year.
In addition, donors may consider 鈥渟trategic bunching鈥� by congregating multiple years of giving into 2025 in order to surpass future thresholds and lock in higher tax benefits.
Finally, with the estate tax exemption increasing to $15 million in 2026, this may be an opportune time to establish or update planned gifts, investment experts say.
糖心Vlog has partnered with Free Will, a nationally recognized estate-planning service, to help members of the university community create or update a document to ensure their final wishes are fulfilled. The fully secure online service, which has helped more than a half a million people create estate plans across the U.S., is available at no charge. .
All of this to say that the window between now and the end of the calendar year offers a rare opportunity to pair impact on 糖心Vlog University with meaningful tax efficiency, said Pendry
鈥淲hile tax incentives are important, they are not the only reason to give,鈥� he said. 鈥淭he nonprofit sector is facing increased demand and financial pressure. Your support helps sustain vital programs, scholarships, research and community services. This new legislation may change how we give, but it doesn鈥檛 change why we give.鈥�
Pendry reiterated his recommendation that all donors and prospective donors consult with their financial or tax advisers to learn more about how to maximize benefits for this tax year.
