One enjoyable aspect of my job is helping our alumni and friends make informed, tax-savvy decisions about their giving to Randolph-Macon and other cherished charities. I’m writing today to make you aware of several significant tax changes that make 2025 a particularly strategic year for giving.

Legislation passed last summer permanently extended several tax provisions and added new ones around deductions that may mean donors wish to accelerate giving, consolidate contributions, or review estate and retirement plans to maximize your gift’s impact on your tax picture in 2025.

 Here’s what to know:

• New Threshold for Charitable Deductions
  Starting in 2026, itemized charitable gifts must exceed 0.5% of your Adjusted Gross Income (AGI) before you can claim a deduction. One strategy to offset this “giving floor” is to bundle or “bunch” multiple years of giving into 2025, ensuring your contributions remain deductible.
• Expanded Deduction Rules for Non-Itemizers
  Taxpayers who do not itemize will be able to deduct up to $1,000 for individuals and up to $2,000 for married couples filing jointly for gifts to qualified public charities (excluding donor-advised funds).
• New Deduction Cap for Top Earners
  Those in the 37% tax bracket will see their charitable deductions capped at 35%, reducing the value of deductions for higher earners. If this applies to you, consider making charitable gifts before 2026 to maximize your tax benefit.
• Permanent Flexibility for Cash Gift Deductions
  The new law makes permanent a higher limit for cash gift deductions of 60% of your AGI, providing ongoing flexibility for generous donors.

As always, consult with your financial advisor or tax professional to determine what’s best for your individual situation—and know that your generosity continues to make a real difference here at Randolph-Macon!