Make the Most of Your Year-End Giving
As 2025 draws to a close, your generosity can make a significant impact on students across Boulder Valley — and with thoughtful planning, your gift can also be tax-smart. H.R 1, or the One Big Beautiful Bill Act (OBBBA), will impact charitable tax benefits in 2026, some of which are briefly outlined below. We encourage you to reach out to a tax professional to better understand your specific situation.
Here’s how to make the most of your charitable giving this year and next:
If you itemize deductions
Give by December 31 to receive a 2025 tax deduction.
- Cash gifts to Impact on Education (or any nonprofit) are generally deductible up to 60% of your adjusted gross income (AGI).
- Non-cash gifts (such as appreciated stocks held more than one year) are generally deductible up to 30% of AGI and may help you avoid capital gains taxes.
- Bunch your giving: Consider accelerating multiple years of charitable gifts into 2025 to exceed the standard deduction threshold; Impact on Education can allocate your gifts as support for future years.
- Use a Donor-Advised Fund (DAF): Contribute to a DAF before Dec. 31, 2025, receive an immediate deduction this year, and recommend grants to Impact on Education in 2026. Contributions of appreciated assets to a DAF can be tax-efficient and expand your giving potential.
If you take the standard deduction
You can still make your giving count, strategically.
- In 2025, standard deduction filers can’t claim a charitable deduction.
- However, starting in 2026, OBBBA allows a $1,000 charitable deduction for individuals ($2,000 for couples) on top of the standard deduction for cash gifts made directly to nonprofits like Impact on Education.
- Consider pledging your 2025 year-end gift now to help us meet our goals, but make your payment in early January 2026 to take advantage of the new deduction.
- If you’re 70½ or older: You can donate up to $108,000 (or $216,000 per couple) directly from your IRA as a Qualified Charitable Distribution (QCD), meeting your required minimum distribution and avoiding income tax.
How you can help students this season
Give today to support access to opportunity for students across Boulder Valley, or pledge your gift now and give in early January to take advantage of 2026’s new deduction rules. Either way, your generosity helps Impact on Education meet year-end goals and start 2026 strong.
Questions?
This is not tax advice, as tax benefits vary based on individual circumstances. Please consult your tax professional for guidance. For questions about how you can support Impact on Education, contact katharine.reece@impactoneducation.org. Your investment fuels programs that create an equal playing field for every Boulder Valley student.
