As you may have heard, the One Big Beautiful Bill Act (OBBA) brings significant changes to the tax benefits of charitable giving—for both those who itemize and those who don’t. While these new rules don’t take effect until 2026, many current rules remain more favorable than what’s coming, making this year-end an important window for strategic giving. Donors may receive stronger deductions by making charitable gifts in 2025, especially if they are considering larger contributions or planning ahead for future tax limitations.
At the same time, giving now meets an urgent moment for nonprofits. Year-end brings higher heating costs, seasonal unemployment, and increased demand for food, housing support, and crisis services—especially in our mountain communities experiencing an extended shoulder season. For donors with market gains, donating appreciated assets or contributing to a Donor-Advised Fund (DAF) can provide significant tax advantages while supporting local families in need. There are many ways to give to Sierra Community House.
Strategies to Maximize Your 2025 Tax Deductions
If you and your advisors determine that accelerating your giving makes sense, here are several tax-smart strategies to consider before the new rules take effect in 2026:
- “Bunch” Multiple Years of Charitable Donations
If you typically give similar amounts each year, consider combining several years of donations into a single, larger 2025 gift—a strategy known as “bunching.”
Example: Instead of giving $20,000 annually over five years, you could make a $100,000 gift this year while the current deduction rules are still more favorable.
- Use a Donor-Advised Fund (DAF)
A DAF lets you give now and decide later which charities to support. You receive an immediate 2025 tax deduction for your contribution, while retaining the flexibility to grant the funds in future years. DAF contributions can even be invested for tax-free growth, potentially creating more charitable dollars over time. This makes DAFs a popular choice for individuals and families who want to manage the timing and impact of their giving.
- Think Beyond Cash Donations
Donating appreciated assets—such as stocks, mutual funds, or business interests—can often be more tax-efficient than giving cash. By contributing these assets directly, you can typically deduct their full market value and avoid capital gains taxes on the appreciation.
IRS limits: Currently, cash donations are deductible up to 60% of AGI and securities up to 30% of AGI. Any unused deductions may be carried forward for up to five years, though carryforwards used in 2026 or beyond will be subject to the new deduction rules.
- IRA Rollovers Remain a Powerful Giving Tool
If you are 70½ or older, a Qualified Charitable Distribution (QCD) allows you to donate up to $108,000 in 2025 directly from your IRA. This gift counts toward required minimum distributions without increasing taxable income, making it one of the most tax-efficient giving strategies available.
What This Means for You—and Your Community
Even with upcoming tax changes, 2025 remains a unique moment to maximize the impact of your charitable giving. Your year-end gift to Sierra Community House can:
- Provide hunger relief during an increasingly difficult season for local workers
- Support survivors seeking safety, stability, and healing
- Offer legal guidance, crisis support, and rental assistance to families in transition
- Strengthen the fabric of the North Tahoe–Truckee community we all call home
By giving now, you help ensure that your generosity reaches neighbors who need it most—while taking full advantage of the current tax rules.
Make Your Year-End Gift Today
If you’re considering a year-end contribution, now is an ideal moment and we thank you will a full and gracious heart. Your support will directly impact local families while maximizing the current tax benefits. We encourage you to speak with your financial or tax advisor to understand how the rules apply to your situation. Feel free to reach out to us as well: Allison Edwards [email protected]
Give today. Give generously. Give knowing it matters—more than ever.
SIERRA COMMUNITY HOUSE IS INCORPORATED AS CRISIS INTERVENTION SERVICES.
FEDERAL TAX ID: 94-2985554
