Why 2025 is a Unique Window to Start or Grow a Donor Advised Fund

Giving is first and foremost about your values — about showing up for the causes and communities you care about. At the same time, how and when you give matters a great deal on your taxes. And right now, 2025 is shaping up to be a unique year to make your giving go further. A smart decision now could pay big dividends for you and Oregon communities. 

Rebecca Bibleheimer, OCF Senior Complex Gifts Officer

The new federal legislation, widely known as the One Big Beautiful Bill Act, has made major changes to the tax code. Some of those changes make 2026 and beyond less favorable for charitable deductions, which means there is a narrow window in 2025 to maximize the benefits of giving — especially if you have a donor advised fund (DAF) or are considering opening one. 

Here are the key things you should know: 

Bundling makes your gifts go further 

The OBBBA made the higher standard deduction introduced by previous tax legislation permanent. Because of this higher standard deduction — $15,750 for single filers and $31,500 for couples in 2025 — many households no longer itemize deductions every year. That’s where a strategy called “bundling” comes in.

If you contribute several years’ worth of charitable giving into a donor advised fund this year, you can itemize and take a larger deduction right away. Then in the years ahead, you can simply take the standard deduction while still using your DAF to make annual grants to your favorite charities. 

2025 offers higher tax savings 

Your gift will deliver a smaller tax break in the future than it will if you make it this year. Starting in 2026, you won’t be able to deduct charitable contributions below 0.5% of your adjusted gross income — and if you’re in the 37% tax bracket, deductions will count at only 35% — not 37%. Neither of those limits apply this year.

Donor advised funds excluded from new deduction 

In 2026, a new “universal” charitable deduction kicks in for people who don’t itemize: up to $1,000 for individuals or $2,000 for couples. But donor advised funds are specifically excluded. 

What this means for you 

Taken together, these changes make 2025 a one-time opportunity. By contributing to a donor advised fund this year, you can: 

• Secure higher deductions while they last 
• Use “bundling” to maximize your tax savings 
• Support your favorite causes over time, on your own schedule 

Next steps 

Your generosity already makes a difference. Smart planning simply helps that generosity stretch further. If you’re considering starting or growing a donor advised fund, we would be glad to walk through your options and coordinate with your advisor so you have a clear picture before year-end. 

OCF has philanthropic advisors located around the state who are available to talk more with you. We offer many different types of funds, including Donor Advised Funds, depending on what you would like to accomplish with your giving. Our investment program, administrative support, personal service and expertise will ensure that you can have the positive impact you want without worrying about details.