Why Now Is The Time To Open Or Grow Your DAF At Brooklyn Org

Nov 18, 2025

Recent changes to the tax code have made 2025 a critical time to open or grow your Donor Advised Fund (DAF) at Brooklyn Org. New federal incentives for charitable giving come at a moment when many Brooklyn families are facing added strain from cuts to benefits.

Donors can now take greater advantage of charitable “bunching” — combining several years of gifts into a single 2025 contribution to exceed the standard deduction threshold and maximize charitable tax benefits — meaning you’ll have more to give at a time when our communities deeply need it.

When you open or grow your Brooklyn Org Donor Advised Fund, you can:

Leverage expanded tax incentives by bundling multiple years of generosity into one strategic gift this year.
Donate appreciated securities to offset capital gains taxes and increase your impact.
Simplify your giving with one fund, one receipt, and guidance from Brooklyn Org’s team of local philanthropic experts.
Join a community of Brooklyn changemakers who care deeply about equity, creativity, and opportunity in our borough.

Take Action Before December 31st

Establish or add to your DAF before December 31 and you will receive an immediate 2025 tax deduction for the full amount — while being able to distribute grants to nonprofits over time, at your own pace.

Here are a few key takeaways to help you navigate changes to tax laws.

1) Higher Standard Deduction & New Itemizer Rules

What changed?

For donors who itemize, the new law makes several significant changes that alter the value and structure of their charitable deductions.

The higher standard deduction is now permanent: $15,750 (single) and $31,500 (married filing jointly) for 2025.
If you itemize, your charitable deductions only count to the extent they exceed 0.5% of your Adjusted Gross Income (AGI). For the top tax bracket, the charitable deduction is effectively capped at 35% rather than 37%.
The existing 60% AGI limit for cash gifts to certain public charities is now permanent.

What This Means For You

Fewer households will itemize, so many people won’t see a tax benefit for every gift. That doesn’t lessen your impact.

If you have a Brooklyn Org DAF, the deduction occurs when you contribute to your fund, not when you recommend grants. Consider “bunching” contributions in the years you plan to itemize. Bunching means concentrating two or more years of charitable gifts into a single tax year so that your total itemized deductions exceed the standard deduction that year.

Example: If you typically give $12,000 each year, but your other deductions don’t exceed the standard deduction, you could contribute $36,000 (three years of giving) to your DAF in 2025. You’d likely itemize in 2025, then take the standard deduction in subsequent years while continuing to recommend grants on your regular schedule. Your giving stays steady, and the timing of the tax deduction works in your favor.

2) A New Deduction For Non-Itemizers

What changed?

Beginning in 2026, taxpayers who do not itemize can deduct up to $1,000 (single) or $2,000 (married filing jointly) for charitable donations.
Gifts to donor advised funds (DAFs) do not qualify for this non-itemizer deduction.

What This Means For You

If you don’t itemize, this gives you a small, permanent deduction for direct gifts to charities.

However, if you have a Brooklyn Org DAF, think of it this way:

Use your DAF for larger, strategic, or appreciated asset gifts. Make modest direct gifts to your favorite nonprofits to take advantage of the non-itemizer deduction when it begins.

3) Strategies that still work

While many things have changed, a lot of charitable strategies remain the same.

Appreciated stock continues to be a tax-savvy gift to charity. Contributing appreciated assets to your Brooklyn Org DAF can help you avoid capital gains and increase your charitable capacity.
IRAs are a powerful planning tool. Naming a Brooklyn Org DAF as the beneficiary of your IRA can avoid estate and income taxes, often increasing what ultimately supports charity.
If you’re 70½ or older, you can make a Qualified Charitable Distribution (QCD)—up to the current annual limit (2025’s per-taxpayer limit is $108,000)—directly from your IRA to a qualified charity. QCDs cannot give to DAFs but they can support other fund types. Our team can help you determine eligible options.