ByKelly Phillips Erb,
Forbes Staff.
Chances are that your inbox is full of reminders to make your end-of-year charitable donations. After all, ’tis the season, and the annual giving cycle once again kicked off on #GivingTuesday—the Tuesday after Thanksgiving—with nonprofits hoping to carry the momentum through December. The timing dovetails neatly with year-end tax planning, which continues to influence how and when many Americans choose to give.
Giving USA’s most recent annual report shows that charitable giving rebounded in 2024. Total contributions from individuals, bequests, foundations, and corporations reached an estimated $592.5 billion, an increase of 6.3% in current dollars and 3.3% after adjusting for inflation, marking the first inflation-positive gain in several years. Giving by individuals—the largest segment—also rose, reaching an estimated $392.5 billion, an 8.2% increase in current dollars (up 5.1% after inflation). Despite that increase, many nonprofits are seeing fewer small-dollar donors.
Shrinking donor participation has been a problem since the 2017 Tax Cuts and Jobs Act (TCJA). By nearly doubling the standard deduction and limiting some itemized deductions, that law dramatically reduced the number of taxpayers who itemize—and itemization is still required to deduct charitable contributions on Schedule A. For 2025, the standard deduction increases again with inflation, to $15,750 for individuals and married couples filing separately, $31,500 for married couples filing jointly, and $23,625 for heads of household.
