The December 19 Deadline: Why It Matters 

December 19 is the last guaranteed day to open a new Renaissance Charitable Foundation (RCF) donor-advised fund (DAF) for 2025 tax benefits. For clients with existing RCF DAFs, contributions are accepted through December 31. 

This year, timing isn’t just operational—it’s financial. Starting January 1, OBBBA introduces two major changes that reduce the value of charitable deductions in 2026 and beyond: 

• A new 0.5% AGI floor for charitable deductions 

• A cap on the value of itemized deductions for high earners 

The result? The same gift is worth less next year. Opening a donor-advised fund and funding it before December 31 preserves full 2025 deduction value. 

Here’s what that means in practice: A client with $500K of adjusted gross income (AGI) making a $50K gift in 2025 can claim the full $50k deduction. In 2026, only the portion that exceeds a $2,500 ($500k*0.5%) floor would be eligible to be claimed, turning their $50k contribution into a $47,500 deduction. If they’re subject to the itemized deduction cap, the benefit shrinks further. 

*Our team will continue processing applications after 12/19, but we can’t guarantee 2025 tax year processing for applications received after this date. 

Clients to Prioritize in These Final Days 

Your peers are focusing their outreach on clients who: 

• Have year-end bonuses or RSUs vesting 

• Expect a business sale or liquidity event closing in early 2026 

• Are planning complex appreciated asset gifts (which need extra processing time) 

• Are updating estate plans under the new $15M/$30M estate exemption taking effect after 2025 

These conversations don’t need to be long, they simply need to happen before the deadline passes. 

A simple script to start the conversation 

Not sure how to bring this up? Here’s a template you can adapt: 

“I wanted to reach out quickly before year-end. If you’ve been thinking about charitable giving, there’s a December 19 deadline to open a new donor-advised fund that would lock in this year’s tax benefits. 

Starting January 1, new tax law changes will reduce the value of charitable deductions, so the same gift will be worth less in 2026 than it is right now. 

Opening and funding a DAF in 2025 allows you to claim 2025 benefits, then distribute the funds to your favorite charities on your timeline. 

If this applies to you or if you’d like to explore what makes sense, I’m happy to walk through it this week. Otherwise, no action needed, I just didn’t want you to miss the window.” 

Why Now is the Most Strategic Moment for Charitable Planning 

A unique combination of factors makes 2025 a “perfect timing” year for year-end charitable giving: 

• Lower individual tax rates and an increased SALT cap make itemizing valuable again for many high-income households 

• The new OBBBA floor and cap starting in 2026 will limit charitable deductions going forward 

• Well-timed giving now generates carryforwards that remain valuable for five additional years 

As the OBBBA overview explains, accelerating charitable giving into 2025 can help clients get ahead of both AGI-based restrictions and the new charitable deduction limits 2026. (Download the full overview) 

Give Your Clients Clarity. We’ll Handle the Complexity. 

If you have questions about DAF year-end deadlines, timing, gift types, asset categories, or whether a client’s upcoming event should trigger a charitable conversation now, your regional Charitable Strategist is happy to talk with you. 

This is the fastest way to make sure nothing slips through the cracks before year-end.