What to Know about Tax-Smart Options for your Gift to National Park Trust
With tax season in full swing, now is the perfect time to explore tax-smart giving options that could benefit both you and the parks you care about.
As part of the recently enacted One Big Beautiful Bill (OBBBA), Congress introduced a new 0.5% Adjusted Gross Income (AGI) floor for charitable contribution deductions, effective for tax years beginning after December 31, 2025 (i.e., starting with the 2026 tax year).
For individuals who itemize deductions, charitable contributions next year will only be deductible to the extent they exceed 0.5% of AGI. For example, if a taxpayer’s AGI is $10,000,000, they must first reduce their charitable contributions for the tax year by $50,000 ($10,000,000 × 0.005). Only the portion of contributions above $50,000 would be deductible.
Additionally, new overall Itemized Deduction limits will take effect, impacting the benefits received from charitable contributions made after December 31, 2025.
For some donors, accelerating giving this calendar year may help them to have a greater impact while reducing tax liability next year. Some strategies include:
- Accelerating charitable donations into 2025 to avoid the 0.5% AGI Floor and the overall Itemized Deduction limitations.
- Utilizing DAF (Donor Advised Funds) Contributions – Contribute a lump sum of cash or appreciated assets to a donor-advised fund to accelerate tax deduction in 2025 tax year (again to avoid the 0.5% and Itemized Deduction limitations)
- After 12/31/25, combining multiple years of charitable contributions into a single tax year (via a DAF or to a particular charity) to exceed the 0.5% AGI floor (and avoid the 0.5% reduction floor in future years – assuming no additional contributions).
Qualified Charitable Distributions
Qualified Charitable Distributions (“QCD”) from retirement accounts are not subject to the 0.5% AGI floor and are also not subject to the limitation on itemized deductions. For 2025, the annual QCD limitation is $108,000 per individual, and this amount is indexed for inflation in future years.
If you’re age 70½ or older, consider making a Qualified Charitable Distribution (QCD) directly from your IRA. You can transfer up to $108,000 tax-free each year, satisfying your Required Minimum Distribution (RMD) while reducing your taxable income—even if you don’t itemize deductions. Tax-smart gifts like QCDs allow you to give more to the causes you care about while keeping more of your income working for you.
To make your QCD count for 2025, instruct your IRA administrator to send your gift by December 31 to:
National Park Trust
401 East Jefferson Street
Suite #207
Rockville, MD 20850
Our Employer Identification Number (EIN) is: 52-1691924
Gifts of Securities
Not eligible to make a QCD? A gift of stock or securities is another great tax-smart way to make a lasting impact.
Questions? For more information, please get in touch with Dolores McDonagh at [email protected].
The information provided on this website is for general informational purposes only and is not intended as, and shall not be understood or construed as, professional tax or financial advice. We strongly encourage you to consult with a qualified tax or financial professional to address your specific situation.
