By John Winchell, CPA, and Treasurer for the Changing and Saving Lives Foundation®
PORT CHARLOTTE, FL (December 22, 2025) — New tax laws for 2026 mean now is the time to maximize year-end giving. As 2025 ends, individuals have an opportunity to accelerate their giving in advance of donation restrictions coming in the years ahead. As individuals evaluate their year-end financial planning, please consider the Changing and Saving Lives Foundation® as a charity partner. A gift to the Changing and Saving Lives Foundation® helps provide reliable transportation, independence and hope for veterans, military members and families in need and deliver life-saving training for first responders.
Key Provisions for Accelerated Giving in 2025
The current 2025 tax year offers a strategic advantage for certain taxpayers due to the absence of the limitations that will take effect in 2026.*
“There are a number of benefits for individuals to maximize their deductions at the end of calendar 2025, ahead of the donation limitations that will go into effect next year,” said John Winchell, CPA, treasurer for the Changing and Saving Lives Foundation®. “As folks plan for their year-end financial close, it will be important to explore opportunities for tax minimization. And, if they are looking for qualified organizations as charity partners, it is equally important to do the research and determine charities that meet their personal interests, serve their community and give back with integrity, compassion and leadership.”
Key elements of the changing tax provisions include:
- No AGI Floor: In 2025, individuals who itemize deductions can generally deduct the full amount of their charitable contributions, up to a percentage of their Adjusted Gross Income (AGI). Starting in 2026, itemizers can only deduct contributions that exceed 0.5% of their AGI, meaning the first portion of their giving provides no tax benefit.
- Higher Deduction Value for High Earners: For taxpayers in the top marginal income tax bracket (37% in 2025), itemized deductions for charity currently offset tax at that 37% rate. Beginning in 2026, the value of that deduction will be capped at 35%.
- Increased State and Local Tax (SALT) Deduction: The OBBBA raised the SALT deduction cap for many taxpayers to $40,000 in 2025 (up from $10,000 in 2024), which may enable more people to itemize their deductions and thus benefit from accelerating their charitable gifts.
To maximize the benefits of the 2025 tax laws, financial advisors recommend the following strategies:
- Bunching Contributions: This strategy involves combining several years’ worth of planned donations into a single year (2025) to exceed the standard deduction threshold for that year. In subsequent years, the taxpayer can take the standard deduction.
- Utilizing a Donor-Advised Fund (DAF): A DAF is an excellent vehicle for bunching. Individuals can contribute a large amount of cash or appreciated assets to a DAF in 2025 to get an immediate tax deduction and then recommend grants to their chosen charities over the next several years at their convenience.
- Donating Appreciated Assets: Gifting appreciated stocks, mutual funds, or other long-term capital gain property directly to a charity (or DAF) in 2025 can be highly tax-efficient. The donor can claim a deduction for the fair market value and avoid paying capital gains tax on the appreciation.
- Qualified Charitable Distributions (QCDs) from an IRA: For donors age 70½ or older, transferring up to $108,000 annually directly from an IRA to a qualified charity in 2025 is a powerful tax-saving strategy. These transfers count toward their Required Minimum Distribution (RMD) but are excluded from their gross income, which helps reduce AGI and other tax implications.
“There is a window that is closing on December 31, 2025 and individuals need to plan and prepare for that,” noted Winchell. “We ask that individuals consider the Changing and Saving Lives Foundation® as part of their charitable giving plans this year. We are focused on providing families in need, veterans and military members with the gift of reliable transportation and delivering life-saving training for first responders in late-model vehicle rescue techniques. Our goal is to help change and save lives every day, and with the help of our generous donors, we will be able to continue to grow our initiatives and achieve our goals.”
- This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction.
ABOUT THE NATIONAL AUTO BODY COUNCIL®
The National Auto Body Council® is the premier organization of collision industry partners dedicated to strategic networking opportunities that positively change lives in the communities we serve. The collaborative membership of the National Auto Body Council® has gifted more than 3,500 vehicles and provided extrication opportunities for some 6,000 First Responders in communities around the country through the NABC Recycled Rides® and NABC First Responder Emergency Extrication (F.R.E.E.™) programs. That effort equates to a 4:1 ROI in dollar value delivered from NABC® membership dollars.
The NABC Changing and Saving Lives Foundation®, a 501c3 organization, is committed to the goal of driving change for veterans, military members, first responders and families in need, while harnessing the power of the collective membership of the collision repair industry to positively impact communities where we live and work. As demand for NABC® programs like NABC Recycled Rides® and NABC F.R.E.E.™ grows, so do the needs for resources to manage these important programs. Being able to pursue grants, gifts and donations allows NABC to expand these programs to serve those in need and help communities where we live and work. For more information, visit www.ChangingandSavingLivesFoundation.org