Each year brings new changes to tax laws that can influence charitable giving and sometimes even in ways that make giving easier and more rewarding. This year’s changes, shaped by what’s been called the “One Big Beautiful Bill” passed on July 4 2025, are the most significant tax law shifts since 2017. Whether you’re a long-time CHOW supporter or someone just discovering our work, here’s what these updates mean for you and why now is an especially good time to give.
Giving Got Easier for Small Donors
For the first time since 2021, non-itemizers (people who don’t itemize deductions on their taxes) can once again receive a tax break for charitable giving. This new “above-the-line” deduction means you can deduct certain charitable donations even if you take the standard deduction. This is huge for many in our community.
In short: you don’t have to be a major donor to see a benefit from giving. Every contribution counts, for CHOW and for your tax return.
Seniors Have New Opportunities to Save and Give
Starting in 2025, taxpayers aged 65 and older receive an additional $6,000 standard deduction (or $1,600 per spouse filing jointly). Plus, if you’re 70½ or older, you can make Qualified Charitable Distributions (QCDs) directly from your IRA- up to $108,000 this year. These gifts can reduce your taxable income and count toward your required minimum distribution (RMD).
In plain terms: if you’re retired and looking for a smart way to support CHOW while lowering your taxes, QCDs are a powerful tool. Ask your financial planner about it today.
Why Timing Matters: 2025 vs. 2026
Next year (2026) some key changes will make giving slightly less tax-friendly:
- The first 0.5% of your Adjusted Gross Income (AGI) will no longer be deductible for charitable giving, meaning only the amount above that threshold will count.
- The maximum tax benefit from charitable deductions will drop from 37% to 35%.
- High-income donors will see less overall tax value from large gifts.
That means gifts made before December 31, 2025 qualify for the highest possible deduction. As many tax experts have said, “this year’s gifts go further.” Please consider “bunching” your charitable giving this year to take advantage of the tax incentives.
Corporate Giving and Local Businesses
Corporate giving is expected to decline. A new cap limits C Corporations to charitable gifts totaling just 1% of taxable income, which is a sharp reduction that may impact local sponsorships and workplace giving programs.
We encourage business partners to explore multi-year giving pledges or consider setting up Donor-Advised Funds (DAFs), which offer flexibility and long-term tax benefits.
Donor-Advised Funds (DAFs) Are Growing
DAFs remain one of the most flexible and tax-efficient ways to give. More people, not just high-net-worth donors, are starting them, especially as minimum thresholds drop. Platforms like GoFundMe have even launched DAF options.
Consider starting or contributing to a DAF now to “bunch” several years of giving into one contribution. You’ll lock in this year’s higher tax benefit while helping CHOW plan ahead for programs that support hospitality workers across Colorado and beyond.
CHOW is set up through Every.org to accept DAF contributions in a seamless approach that only requires a few clicks.
The Bigger Picture
The economy plays a major role in charitable giving. With the stock market up 16% this year (and 94% over the last five), some donors are seeing strong asset growth. Gifts of stock and cryptocurrency remain tax-smart ways to give, often allowing you to donate appreciated assets without paying capital gains tax. CHOW is set up through Every.org to accept stock and cryptocurrency gifts as well.
At the same time, everyday costs remain high, and local giving may tighten as people and businesses balance inflation and uncertainty. CHOW is fortunate to have a strong grant portfolio and loyal community partners, but sustaining our free, peer-led mental health programs means we’ll need to continue expanding our donor base and introducing more tax-smart giving options.
How You Can Help Before the Year Ends
- Give before December 31 to maximize your tax benefits: Gifts made this year qualify for full deductions.
- Consider a DAF, stock gift, or QCD: These options can reduce taxes on appreciated assets or retirement accounts.
- Talk to your financial planner: Even small adjustments, like bunching two years of giving, can make a big difference.
- Share CHOW with your network: Personal recommendations help us reach new supporters at a time when community matters most.
Final Thoughts
2025 offers a unique window where generosity and smart financial planning align. Your support fuels CHOW’s mission to make mental-health and recovery support free, welcoming, and stigma-free for those who keep our communities connected: the chefs, servers, bartenders, and hospitality professionals who care for us every day.
Together, we can end the year strong and build a more resilient hospitality community for 2026 and beyond. Please check out CHOW’s Donate Page to learn more about how you can support our mission.
Disclaimer: CHOW is not a licensed financial planner or accounting professional. Please consult with a licensed professional before making any significant shifts to your giving practices.
