Most advisors don’t struggle with believing in charitable planning. 

They struggle with explaining it, especially now. 

Since the passage of OBBBA, many advisors are fielding client questions that sound like this: 

• “Did charitable deductions basically go away?” 
• “Does giving still reduce my taxes?” 
• “Is it even worth talking about this anymore?” 

The headlines haven’t helped. And the risk for advisors isn’t getting the math wrong. It’s backing away from charitable conversations altogether because the rules feel more complicated than before. 

The good news: charitable giving still plays an important role in income tax planning. It just requires more intentional judgment and clearer explanation. 

Here’s what advisors need to know and how to talk about it with confidence. 

What Changed and What Didn’t 

What changed: 
Fewer households will benefit from itemizing deductions. As a result, charitable contributions won’t reduce income taxes for every client in every year. 

What didn’t: 
Charitable deductions did not disappear. For clients who itemize, charitable giving can still create meaningful income tax benefits, especially when timing and strategy are aligned. 

The shift isn’t about whether charitable planning still matters. 
It’s about when it matters most. 

When Charitable Giving Still Creates Income Tax Value 

Rather than thinking in terms of blanket rules, advisors are best served by recognizing situations where charitable deductions remain impactful. 

Charitable giving often still creates income tax value in years when clients experience: 

• Higher-than-usual income 
• Liquidity events or asset sales 
• Concentrated positions being diversified 
• Itemized deductions that approach or exceed the standard deduction 

In these moments, charitable planning becomes less about generosity alone and more about intentional timing. 

For other clients, charitable giving may not reduce taxes in a given year, but it can still be part of a longer-term strategy when planned thoughtfully. 

Is Bunching Still Relevant? Yes – and in Some Cases, Even More So.  

One of the most common questions advisors are asking post-OBBBA is whether “bunching” still works. 

The answer is yes. 

For clients who itemize, concentrating charitable contributions into a single tax year can still increase total deductions taken over time, even if they use the standard deduction in off years. 

In fact, in the post-OBBBA environment, bunching can be even more valuable.  

By concentrating giving into one year, a client only has to “clear the hurdle” for deductibility once rather than giving up deduction value year after year.  

This is where donor-advised funds (DAFs) continue to play an important role. 

A DAF allows clients to: 

• Take a charitable deduction in a high-income or itemizing year 
• Recommend grants to charities over time 
• Separate the tax decision from the giving decision 

That flexibility remains highly relevant in today’s environment. 

How to Explain This to Clients (Without Overcomplicating It) 

Advisors don’t need to lead with thresholds, percentages, or legislative nuance. What clients need most is clarity. 

Language that often resonates: 

• “The charitable deduction didn’t go away, it just requires more intentional planning than before.” 
• “Some years, giving reduces taxes. Other years, it doesn’t, but that doesn’t mean it isn’t part of a smart long-term plan.” 
• “A donor-advised fund lets you make the tax decision now and the charitable decisions over time.” 
• “The goal isn’t to give more. It’s to give more intentionally.” 

These conversations don’t require tax expertise. They require knowing when to ask the question. 

The Advisor Takeaway 

OBBBA didn’t eliminate the value of charitable planning, it raised the bar for how thoughtfully it’s applied. 

Advisors don’t need perfect answers or detailed calculations at their fingertips. What matters most is recognizing when charitable giving intersects with broader planning goals and being confident enough to start the conversation. 

When the situation calls for deeper analysis, support matters. And when it doesn’t, clarity and judgment go a long way. 

Charitable planning still belongs at the table, just with a more intentional seat.