Should You Donate to Charity This Year or Wait? It Depends.

Understanding the Impact of Recent Tax Law Changes

The latest revisions to the federal tax code have created a split in how charitable contributions affect taxpayers. Taxpayers who claim the standard deduction will see a different benefit compared to high‑income earners who itemize their deductions.

Standard Deduction Recipients

For most filers who take the standard deduction, the new law introduces a modest above‑the‑line charitable deduction. This means you can claim a limited amount of your donations without having to itemize, but the overall tax savings are relatively small.

Itemizers and High Earners

Those who already itemize, especially high earners, can still deduct the full amount of their charitable gifts, subject to the usual limits. However, the increased standard deduction for many taxpayers may push some borderline itemizers into the standard‑deduction group, reducing the incentive to donate before year‑end.

Strategic Timing for Your Gift

Given these nuances, consider the following when deciding whether to give now or later:

• Assess your filing status: If you expect to itemize next year, a donation this year could yield a larger tax benefit.
• Review your income projections: A significant change in earnings could shift you from itemizing to the standard deduction.
• Evaluate the charity’s needs: Some organizations rely on timely contributions, regardless of tax considerations.

Bottom Line

The decision to donate now or wait hinges on your personal tax situation. If you’re uncertain, consult a tax professional to determine which approach maximizes both your philanthropic impact and your tax advantage.