Navigating the New Tax Law: Your Guide to a Successful Year-End for Major Gifts
As a fundraiser, the end of the year is a critical time for major giving. With a new tax law on the horizon, this year presents a unique and urgent opportunity you won’t want to miss.
New Tax Incentives to Promote
Starting in 2026, the “One Big Beautiful Bill Act” (OBBBA) will change the rules for charitable deductions for donors. The new law imposes a floor for itemized charitable deductions. Starting in 2026, only the amount of charitable gifts that exceed 0.5% of the donor’s “contribution base” (adjusted gross income, or AGI, for most) will be deductible. This means a donor with a $200,000 contribution base/AGI, for example, won’t be able to deduct their first $1,000 in charitable gifts.
For those in the top tax bracket, the value of their itemized deductions—including charitable donations—will be capped at 35%, down from the current 37%.
While a 2% difference may seem minor, for a major gift, the impact is significant. A $1 million donation, for example, would result in a $20,000 smaller tax break for the donor if made in 2026 instead of 2025. This creates an immediate and compelling reason for your donors to accelerate their giving.
It’s also important to note that the OBBBA introduces new incentives for a broader range of donors, particularly those who take the standard deduction (about 85-90% of all taxpayers). Starting in 2026, these non-itemizers may deduct charitable gifts of up to $1,000 (single filers) or $2,000 (married filing jointly). This is a new opportunity to communicate with a wide audience.
More than a Deduction: Cultivating Meaningful Relationships
However, a great year-end campaign can’t be built on a tax hook alone. Your major and planned gift donors are not simply looking for a tax deduction; they are motivated by passion and a desire to make a difference. To truly maximize this opportunity, your messaging must go beyond the “federal funding lost” or “it’s calendar-year-end” narratives.
Here are some key strategies for connecting with your major donors this year:
- Make It Personal and Compelling Instead of a one-size-fits-all message, build a strong and compelling case for each individual donor. Your ask should be tailored to their specific interests and history with your organization. What excites them? What impact do they want to have? This personalized approach is what will secure the most significant gifts.
- Think Beyond the Checkbook While cash is always welcome, many of your major donors hold wealth in other forms. Now is the time to educate them on the benefits of different gift types, such as gifts of stock, IRA distributions, or charitable annuities. Be proactive in communicating any deadlines for receiving and processing these gifts to ensure they are completed before year-end.
- Don’t Rely on “Renewals” A major gift is not an annual subscription. Your donors likely don’t think of their past gift as something to “renew.” You must do the work to introduce a new offer—a new campaign, a special project, or an urgent need—that gets them excited to support your station again.
- Be Explicit in Your Ask Don’t use vague language like “leadership support.” Your donors want to know exactly what you are asking for. Be explicit in your communication, whether it’s an in-person meeting, a phone call, or a letter. Ask for a specific gift amount or a clear gift range to remove any ambiguity.
- Set Clear Expectations Be respectful of your donors’ time and intentions. When scheduling a meeting, make it clear whether the purpose is to ask for a gift or simply to update them on your organization’s progress. This transparency will build trust and prevent any surprises.
- Don’t Hesitate to Ask for a Multi-Year Gift The new tax law makes this year an ideal time to secure multi-year commitments. A multi-year gift can help a donor maximize their tax benefits in 2025 and provide your organization with predictable, long-term funding.
This year, you have a unique and powerful opportunity to combine the emotional appeal of your mission with a time-sensitive financial incentive. By focusing on personal, explicit, and strategic communication, you can build stronger relationships and secure transformational support for your organization.
