Key Takeaways
- A third of annual donations: About one-third of all charitable contributions are made in December.
- Donating before December 31 may offer tax advantages. New rules starting in 2026 (via the OBBB Act) may affect deductions for high earners and corporations.
- Consider tools like IRAs, appreciated securities, and bundling donations.
- Because of complex rules and evolving tax laws, working with financial, tax, and legal professionals may help you make the most of your charitable giving strategy.*
A third of annual donations: About one-third of all charitable contributions are made in December, driven by holiday spirit and year-end tax preparation. So, if you’re considering making annual charitable donations, you are not alone. Nonprofits often receive 17–31 percent of their annual online revenue in December, with 47 percent of that revenue coming in the last week of December, and 20 percent coming on December 31.¹
There are both emotional and strategic reasons Americans wait until the end of the year to fund their favorite causes, including a combination of cultural norms, tax incentives, and the spirit of the holiday season.
December is synonymous with the holiday season, which often centers around giving, gratitude, and community. Many people are naturally inclined to help those in need during this time.
The festive atmosphere often inspires a “season of giving,” where people are reminded of the importance of family, togetherness, and goodwill, which can translate into increased charitable actions.
December also offers an opportunity for people to reflect on the year and their own successes and failures, leading to a desire to give back. Individuals may feel grateful for their blessings and want to share with others in need. Charitable acts allow them the opportunity to finish the year on a positive note and giving back to the community.
Nonprofits are aware of the emotional triggers as the year comes to a close and ramp up their giving campaigns to capitalize on the expected generosity.
From a strategic standpoint, Americans know that charitable contributions made by December 31st may result in tax advantages. This may create financial incentives, especially for high-net-worth individuals and businesses, to make charitable donations at the end of the year that also can have tax benefits.
Keep in mind this article is for informational purposes only and is not a replacement for real-life advice. Consult your tax, legal, and accounting professionals before modifying your charitable giving strategy for tax reasons.*
America Is a Generous Nation
Regardless of the motivation, Americans are generous. For 2024, total charitable contributions were over $590 billion. That’s a 6.3 percent increase from the prior year and the largest increase since the pandemic year of 2021.²
“Giving Tuesday,” which takes place on the Tuesday after Thanksgiving, has also evolved into a global movement that encourages year-end donations, particularly through social media and online platforms. Nonprofits raised a record $3.6 billion on Giving Tuesday in 2024, a 16 percent increase from 2023.
This year, Giving Tuesday (not to be confused with the spending holidays of Black Friday or Cyber Monday) is December 2nd.
Who Is Contributing?
Individuals donate most of the nation’s charitable contributions – by a lot. In total, 66 percent of last year’s giving came from individuals, an 8.2 percent increase from the prior year. The closest runner-up was foundations at 19 percent, followed by bequests at 8 percent and corporations at 7 percent.
The bequest slice of the charitable contribution pie may be set to expand in the coming years as the ‘Great Wealth Transfer’ from older generations continues. Cerulli Associates projects that wealth transferred through 2048 will total $124 trillion—$105 trillion is expected to flow to heirs, while $18 trillion will go to charity.³
Where Are Contributions Going?
In 2024, nearly half of all charitable dollars went to religion (23 percent), Human Services (14 percent), and Education (14 percent). The rest was spread among Foundations (11 percent), Public-Society Benefit (11 percent), Health (10 percent), International Affairs (6 percent), Arts/Culture/Humanities (4 percent), Environment/Animals (3 percent), and the rest went to other small categories. The largest year-over-year percentage increases in donations went to Public-Society Benefits, International Affairs, and Education.
How Do You Choose a Charity to Support?
With so many charities seeking your support, choosing which ones to donate to can be difficult. By researching and preparing, you can find a charity that aligns with your values and uses your donation wisely.
- Research the Charity: Use publicly available sources to understand what a charity does and who it serves. One factor to consider is the group’s transparency and accountability in financial reporting and program effectiveness. You can also get information on websites such as Charity Navigator, GuideStar, or the Better Business Bureau’s Wise Giving Alliance.
- Understand the Mission and Impact: Another factor to consider is whether the organization’s values and goals align with yours. Look for a clear and measurable impact on the community or cause they serve. Consider the scope of their programs and services.
- Consider Your Interests and Passions: Your interests and passions can help you find a cause that resonates with you and inspires you to make a difference.
- Getting Involved: Many charities offer volunteer opportunities or ways you can participate in their events and campaigns. These opportunities can give you an even greater understanding of the charity’s impact while helping you build a deeper connection to the cause.
How Does the One Big Beautiful Bill Act Impact Charitable Tax Deductions?
In general, the new tax provisions in the OBBB may enhance the tax benefits of charitable donations. However, the Act does introduce limits for high earners. Here are some key changes in tax treatment for charitable donations.
Starting in 2026, the law allows for a new charitable gift deduction for taxpayers who do not itemize up to $1,000 for single filers or $2,000 for married couples filing jointly. Those who itemize can only claim a tax deduction if their qualified charitable contributions exceed 0.5 percent of their adjusted gross income.⁴
For taxpayers in the highest tax brackets, the value of charitable deductions will be limited to 35 percent of the contribution amount, even if they are in the 37 percent marginal tax bracket. This means that a $1,000 donation would yield a $350 deduction instead of the previous $370.⁴
Corporations will face new rules, including a 1 percent floor for charitable contributions. The purpose is to prevent excessive tax breaks while still encouraging corporations to give to charity.⁴
You may want to consider these new provisions when thinking about your charitable contribution strategy. If you are a high earner or have a business, you may need to address how your current strategy works or conflicts with the new rules.
What Are Some Tax-Advantaged Charitable Giving Strategies?
As financial professionals, we have worked with many clients over the years to help them create a charitable giving strategy. We often coordinate with clients' tax professionals and estate attorneys to help align the overall approach.*
Here are some ideas to consider when building a strategy.
- Consider Using Your Traditional IRA to Make Qualified Charitable Distributions. If you are at least 70½ years old, you can donate up to $108,000 in 2025 from your IRA as a Qualified Charitable Distribution. Each spouse can contribute that amount, equaling $216,000 if you are married. The distribution may satisfy your annual required minimum distribution (RMD). Since it is not reported as income, the RMD won’t be reported on your personal tax return. Current tax law raised the standard deduction, which has influenced some RMD decisions.⁵
- Donating Appreciated Securities. Suppose you are considering using the proceeds from appreciated securities to make a charitable donation. If that is the case, consider the tax consequences of donating the securities rather than selling the position and donating the cash.
- Donating Depreciated Securities. On the other hand, if you have depreciated securities, you might want to explore the tax consequences of recognizing those losses before making the gift. That approach may allow you to hold the losses, which could be used to offset capital gains in the future.
- Consult with Your Financial Professional before modifying your investment strategy for tax reasons. Your financial professional may want to speak with your tax, legal, and accounting professionals before moving ahead with any strategy that generates losses in an account.*
Your Impact Is About Effectiveness and Timing
Thoughtful philanthropy can create a lasting impact while enhancing your overall financial strategy. We can help you explore the possibilities, and ensure your philanthropy aligns with your broader financial strategy. If you’re interested, feel free to contact us to discuss how to turn your charitable vision into action for 2025 and beyond.
*Primerica representatives are not financial or estate planners, or tax advisors. For related advice, individuals should consult an appropriately licensed professional.
¹ DonorBox.org, August 21, 2025
² The BenefactorGroup.com, September 2025
³ Cerulli.com, December 5, 2024
⁴ Fidelitycharitable.org, July 2025
⁵ Schwab.com, December 13, 2024.
Once you reach age 73, you must begin taking the required minimum distributions from a traditional IRA in most circumstances. Withdrawals are taxed as ordinary income and, if taken before age 59½, may be subject to a 10% federal income tax penalty. Contributions to a traditional IRA may be fully or partially deductible, depending on your adjusted gross income.