2025: A Pivotal Year for Philanthropy

Los Altos Mountain View Community Foundation Urges Donors to Act Before New Tax Rules

The Los Altos Mountain View Community Foundation (LAMVCF) is encouraging donors to review their giving strategies before year-end. Federal tax changes taking effect in 2026 will reshape charitable giving, especially for those who use or are considering donor-advised funds (DAFs).

Key Tax Changes

The One Big Beautiful Bill Act (OBBBA), signed into law on July 4, makes several significant adjustments:

• Itemizers will face a new 0.5% “deduction floor” before charitable deductions apply. For a household with $400,000 in adjusted gross income, the first $2,000 of giving will no longer be deductible.
• Standard-deduction taxpayers will gain a limited new universal deduction—$1,000 for individuals or $2,000 for couples—but only for direct gifts, not DAF contributions.
• The standard deduction itself will rise to $15,750 for individuals and $31,500 for couples in 2025, with a temporary $6,000 increase for most taxpayers age 65 and older.

These rules take effect in 2026, making 2025 the final year to contribute to donor-advised funds under current, more favorable conditions.

Why LAMVCF in 2025

A donor-advised fund remains one of the most flexible tools for philanthropy, offering an immediate tax deduction, the ability to make thoughtful grants over time, and the option to invest charitable assets for growth. For households planning multi-year giving, contributing in 2025 may yield a stronger deduction than waiting until 2026.

When opened through LAMVCF, those funds also stay local supporting education, youth programs, safety-net services, the arts, climate action, and community resilience through the Local Impact Collective.

The Local Impact Collective is a network of local nonprofits, civic partners, and funders convened and supported by LAMVCF to collaborate on complex community issues. By pooling expertise and resources, the Collective strengthens the region’s nonprofit ecosystem and drives greater results together than any organization could achieve alone.

“This year presents a special window for donors to strengthen their long-term impact,” says Crysta Krames, CEO of the Los Altos Mountain View Community Foundation. “Opening a fund with LAMVCF ensures charitable dollars make a tangible difference here at home.”

Financial planners are encouraging households to review their charitable and estate strategies before year-end. Donors may also want to take advantage of the elevated federal estate and gift tax exemption, which rises to $15 million per individual ($30 million per couple) in 2026.

If you’ve been considering opening or replenishing a donor-advised fund, 2025 is the year to act. Consult your tax advisor and contact LAMVCF for guidance on strategic giving that strengthens our local community now and for years to come.

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