The recently enacted One Big Beautiful Bill Act introduces new provisions that may offer meaningful tax advantages for charitable giving in 2025. These updates create a unique opportunity to give strategically this year.

• 0.5% AGI Floor: Beginning in 2026, only charitable contributions that exceed 0.5% of your Adjusted Gross Income (AGI) will qualify for an itemized deduction. Gifts below that threshold won’t provide a tax deduction. In 2025, all charitable contributions still qualify for a deduction with no minimum threshold. By giving before December 31, 2025, you can take full advantage of today’s more generous deduction rules.
• Charitable deduction ceiling: Starting in 2026, individuals in the highest tax bracket will see the value of their charitable deductions capped at 35%, meaning they’ll receive up to 35 cents of tax benefit for every dollar deducted—down from the current rate of up to 37 cents per dollar. This new cap applies after other limits, including the now-permanent 60% of AGI limit for cash charitable donations and the new 0.5% AGI floor.

For high-income donors, these changes make 2025 an especially smart year to give. Thoughtful planning — including the timing of your gift and the type of giving vehicle you choose — can help you maximize your philanthropic impact and tax benefits.

Please make your check payable to Friends of the Children and send it to:

Friends of the Children – National
PO Box 3692
Seattle, WA 98124

Temporary address while our headquarters is under construction

With more than two million Donor Advised Fund accounts in the U.S. holding over $250 billion, DAFs represent an incredible opportunity for collective impact. By giving through your DAF, you join a community of long-term partners who provide the steady support that allows every child to count on their Friend year after year.

A DAF is a simple, flexible way to manage your charitable giving—offering an immediate tax deduction, the ability to recommend grants to organizations like Friends of the Children over time, and the opportunity to plan your giving strategically. To make a DAF gift, log in to your DAF sponsor’s portal (e.g., Fidelity, Schwab, BNY Mellon), recommend a grant to Friends of the Children (EIN: 93-1300690), and consider setting up recurring or multi-year gifts to sustain our long-term promise to children.

If you’re 70½ or older, you can make a meaningful difference through an IRA Charitable Rollover. Simply ask your IRA administrator to send a direct transfer to Friends of the Children. This tax-wise gift option supports our mission while helping you reduce taxable income. See details and instructions.

Donating funds via electronic fund transfer may be faster and safer than writing a check. If you are interested in donating to Friends of the Children via a wire transfer or EFT, please contact Niccole Ferguson, Gift Processing & Donor Database Manager, at nferguson@friendsofthechildren.org.

Many employers offer matching gift programs for donations made by their employees, retirees, and family members. Check with your human resources department to see if your company participates. You can submit your request online, or if a paper form is required, please mail it to:

Friends of the Children – National
PO Box 3692
Seattle, WA 98124

Temporary address while our headquarters is under construction

Donating appreciated securities (such as publicly traded stock, bonds, or mutual funds) that you have owned for more than one year is a great way to support our work. Compared to donating cash or selling your appreciated securities and contributing after-tax proceeds, you may be able to automatically increase your gift and your tax donation.

When you donate securities to Friends of the Children, you will receive a charitable income tax deduction for its full market value. Even better, you will avoid any capital gains tax on the increase in value of the stock since you purchased it.

For transfer information, please contact Niccole Ferguson, Gift Processing & Donor Database Manager, at nferguson@friendsofthechildren.org.