Dear Jack,

As we approach the end of 2025, I wanted to reach out personally about an important development that may affect your charitable giving strategy.

The One Big Beautiful Bill Act (OBBBA), signed into law in July 2025, introduces significant changes to charitable tax deductions that take effect on January 1, 2026. For donors like you who have generously supported Friends for Animals of Metro Detroit, these changes create a compelling opportunity to maximize both your philanthropic impact and your tax benefits by making contributions before year-end.

What’s Changing in 2026?

Starting next year, two new provisions will reduce the tax benefits for itemizing donors:

New Giving Floor: Only charitable contributions exceeding 0.5% of your adjusted gross income (AGI) will be tax-deductible. For example, if your AGI is $600,000, the first $3,000 in donations would no longer provide any tax benefit.
Reduced Deduction Cap: For donors in the highest tax bracket (37%), charitable deductions will be capped at 35%, reducing the value of each dollar donated.

Real-World Impact

To illustrate: A donor with $600,000 in income making a $25,000 gift in 2025 would receive a tax benefit of $9,250. That same gift in 2026 would yield only $7,700 in tax savings—a reduction of $1,550.

A Time-Sensitive Opportunity

By completing your charitable giving before December 31, 2025, you can:

Maximize your tax deduction at the full 37% rate (if applicable)
Ensure every dollar of your contribution is deductible
Make a larger impact on the causes you care about

Why Your Support Matters More Than Ever

These tax changes are expected to reduce charitable giving by tens of billions of dollars over the next decade. At the same time, Friends for Animals of Metro Detroit continues to nurture the bonds between animals, people, and the community. Your continued partnership is essential as we continue to enrich the quality of life for our furry friends.

I’d welcome the opportunity to discuss how these changes might affect your giving strategy and explore ways to maximize your impact in 2025. Please feel free to reach out to me directly at 313-943-2697 x1004 or [email protected].

Of course, we recommend consulting with your tax advisor or financial planner to determine the best approach for your individual circumstances.

Thank you for your steadfast commitment to Friends for Animals of Metro Detroit and the communities we serve together.

With gratitude,

Cory Keller

President and CEO

Friends for Animals of Metro Detroit

313-943-2697 x1004