Krisanapong Detraphiphat | Moment | Getty ImagesA version of this article first appeared in CNBC’s Inside Wealth newsletter with Robert Frank, a weekly guide to the high-net-worth investor and consumer. Sign up to receive future editions, straight to your inbox.Lawyers to the wealthy are advising clients to ramp up their charitable giving this year to take advantage of tax advantages that will decline in 2026.President Donald Trump’s sweeping tax-and-spending bill included provisions that reduce the tax benefits of charitable giving for high earners. Since the provisions don’t take effect until next year, advisors to wealthy donors are recommending they frontload or “bunch” their giving this year to take advantage of tax benefits.”If you’re thinking about making a big gift, or you know you have a charity that you want to be supportive of over the next couple years, and you got the cash right now, this is the time make a big gift,” said Dan Griffith, director of wealth strategy at Huntington Private Bank.The bill handicaps top-earning donors in two ways. First, starting in 2026, donors who itemize will only be able to deduct charitable contributions in excess of 0.5% of their adjusted gross income (AGI). With this floor, a household with an AGI of $400,000 that makes $10,000 of charitable donations in 2026 will not be able to deduct the first $2,000 in giving, according to Griffith.Second, taxpayers in the 37% tax bracket will have their deduction reduced by 2/37th of the value. This ceiling reduces the effective tax benefit from 37% to 35%.Get Inside Wealth directly to your inboxThe Inside Wealth newsletter by Robert Frank is your weekly guide to high-net-worth investors and the industries that serve them.Subscribe here to get access today. While the floor and ceiling changes may seem small, they have notable ramifications for top earners. For instance, consider an entrepreneur who has $10 million in AGI after selling a business and donates $1 million to lower his tax liability. If done in 2025, the entrepreneur would get a tax reduction of $370,000, according to Griffith. Starting in 2026, the deduction would be reduced by $20,000 thanks to the ce …
