The importance of year-end giving

This year, year-end giving is more important than ever. There are major changes to tax laws set to take effect beginning January 1, 2026, so it is important to time your year-end gifts appropriately. Once the new year begins, only the amount of charitable giving that exceeds 0.5 percent of your adjusted gross income (AGI) will be deductible, so it is to your advantage to make your donation before December 31, 2025, to take advantage of the current deduction rules. 

In 2024, the website Giving USA reported that Americans donated a record $592.5 billion to their favorite charities, a 3.3 percent increase over 2023. Giving by individuals rose about 5.1 percent to $392.45 billion, as did contributions by foundations (2.4 percent) and corporate giving (6.0 percent). Giving by foundations and bequests was down by 0.5 percent and 4.4 percent, respectively. (All figures are adjusted for inflation.)
 
Individual donors, planned legacy gifts, and family foundations and trusts provide the majority of our support – nearly 95 percent of our revenue. During the holidays, many charities receive 50 percent of their total yearly contributions in the last quarter of a calendar year and of that number, 40 percent in December alone. 

One of the changes that will affect your 2025 taxes (when you file in 2026), however, is the new universal deduction. For those who take the standard deduction and do not itemize, individuals can claim $1,000 and married couples can claim $2,000 in charitable donations (gifts to donor-advised funds [DAFs], private foundations, and supporting organizations do not qualify). 

There are also changes that will affect corporate giving. Changes in 2026 will limit charitable gifts that can be deducted to those that exceed 1 percent of a company’s cumulative income, whether the company gives the whole amount to one charity at once or splits it among many over the year. 

If you are contemplating making a year-end gift to the Guide Dog Foundation by donating cash, stock, or securities to gain the full 2025 tax advantage of your donation, here are some helpful tips to follow: In most cases a charitable gift is deemed completed when control over the asset has been transferred from the donor to the charity. For gifts of cash and securities this means different things, depending on how the gift is transferred. 

If you are making a contribution by credit card through our websites or over the phone and your donation is charged to your card before December 31, it will count for 2025. This is true even if your credit card bill isn’t due until January 2026. Online giving is the best way to ensure your donation is credited properly to 2025. 

If you are sending a gift by mail, the donation is effective on the date mailed as indicated by the postmark, even if we physically receive it in 2026. Given changes in USPS delivery times, please plan accordingly. 

Many individuals choose to donate securities and stocks at the end of the year, and many of these gifts are electronically transferred to the charity directly from the donor’s broker. 

In the case of electronic transfers, the gift becomes effective the date the funds are reflected on the charity’s bank or brokerage account, not the date you instructed your bank or broker to make the transaction. Electronic transfers can be greatly affected by volume, so give yourself sufficient time for the gift of stock or securities to be completed. 

Please remember that all gifts must be made before December 31, 2025. Thank you for your generosity.

To learn more about ways to support the Guide Dog Foundation, please visit GuideDog.org/WaysToGive .