New tax legislation taking effect January 1, 2026 will fundamentally reshape how charitable contributions are valued—and for many donors, the financial impact will be important and permanent.

But here’s what matters most: You have just two months to act.

What’s Changing—and Why It Matters Now

On July 4th, the One Big Beautiful Bill Act (OBBBA) became law. This law will bring important new tax policy changes that directly impact charitable giving beginning January 1, 2026:

• The New 0.5% AGI Floor
  Beginning in 2026, only charitable gifts exceeding 0.5% of adjusted gross income will be tax-deductible. This means donors must clear this threshold to receive any tax benefit. This effectively reduces the deductible portion of their contributions.

Over time, the missed tax benefits add up. For sustained giving over a decade or more, these losses can compound into significant amounts—money that could have supported meaningful causes.

• The Top Tax Bracket Cap
  High-income donors in the 37% income tax bracket will see the per-dollar tax benefit of their charitable contributions reduced to $0.35 in tax benefit per dollar donated instead of the current $0.37.

Combined, these changes can represent substantial lost deductions in future years for higher-income donors. That’s not just money lost to taxes; it’s philanthropic capital that could have increased impact for the causes and communities donors care about most.

Lock in Current Tax Benefits by Bunching Gifts Before December 31 Savvy donors and advisors can respond decisively with a proven tax strategy: charitable gift bunching.

Rather than spreading contributions across multiple years under less favorable tax treatment, bunching consolidates 2-5 years of planned charitable giving into a single 2025 donation. This approach permanently preserves current tax advantages—locking in full deductibility at today’s rates before both the 0.5% floor and the top tax bracket cap take effect.

The result? More money working for your favorite causes – less diverted to taxes.

How Donor Advised Funds Make Bunching Seamless

Donor Advised Funds (DAFs) are the ideal vehicle for implementing a bunching strategy. Here’s why:

Immediate tax benefit, flexible impact timeline. Donors can make a strategic contribution to a DAF in 2025 to receive the full tax deduction immediately. They can then recommend grants to their favorite charities over multiple years as opportunities emerge in the future.

There is no need to identify all recipients immediately. There are no deadlines, no restrictions on timing—just complete flexibility to support the causes you care most about.

Why the California Community Foundation?

For more than a century, the California Community Foundation has helped donors and advisors transform generosity into lasting community change. A DAF with CCF delivers advantages that extend far beyond tax strategy:

Your Personalized Philanthropy Partnership

Every CCF donor works with a dedicated relationship manager who becomes a trusted advisor on values, vision, and impact. You’ll have direct access to seasoned philanthropic and community experts with deep expertise across every cause area, plus seamless collaboration with your financial advisors, attorneys, and estate planners.

CCF’s sophisticated grantmaking capabilities support organizations across Los Angeles County, nationally, and internationally.

Deep Connections, Measurable Impact

CCF’s 108 years of cultivated relationships with LA County’s highest-performing nonprofits means your contributions are backed by rigorous due diligence. We arrange curated site visits, ensuring every dollar drives real, quantifiable difference. Our donors gain exclusive access to influential civic leaders, social innovators, and nonprofit visionaries who are shaping the future of our communities.

Build a Multigenerational Legacy

CCF provides proven engagement tools that inspire children and grandchildren to embrace purposeful giving. With complete flexibility to evolve strategies as family priorities and community needs shift, you create a permanent philanthropic legacy that embodies and perpetuates your values across generations.

The December 31st Deadline Is Irrevocable

This isn’t just another tax deadline—it’s the closing of a planning window that will not reopen. Every week of delay means permanently forfeiting tax benefits that could amplify your charitable impact for years to come.

The causes that matter most to you can’t afford to wait.

Take Action Today

CCF understands that each donor has unique tax circumstances and charitable objectives that require careful evaluation to implement the most effective strategy.

For donors: Schedule a confidential conversation with your relationship manager to discover precisely how CCF can help you maximize both your tax efficiency and your enduring philanthropic legacy.

For advisors: Let’s discuss which clients would benefit most from this time-sensitive year-end bunching strategy and how CCF can serve as a valuable partner and resource for your practice.

Contact Emily Stork, Senior Manager of Planned Giving, for a complimentary consultation: estork@calfund.org

About the California Community Foundation

Since 1915, the California Community Foundation has served Los Angeles County as a public charitable organization dedicated to leading systemic change that strengthens communities. Managing over $2.4 billion in assets and overseeing 1,900 charitable funds and legacies, CCF’s vision is a good life for all in Los Angeles County. Learn more at www.calfund.org.