Key Takeaways

• A third of annual donations: Roughly one-third of charitable contributions occur in December across North America.
• Timing matters: Donations made before December 31 may offer potential tax benefits. New rules beginning in 2026 — such as the One Big Beautiful Bill Act in the U.S. and proposed AMT changes in Canada — may influence deduction or credit eligibility for high-income earners and corporations.
• Smart giving tools: Consider IRAs or RRSPs, donor-advised funds, appreciated securities, and bundling contributions for greater efficiency.
• Get professional guidance: Because tax laws are complex and evolving, coordinate with qualified financial, tax, and legal professionals before acting.

Why Giving Peaks in December

Across the U.S. and Canada, about one-third of all charitable gifts are made in December, driven by both holiday generosity and year-end financial planning. Nonprofits often receive between 17 and 31 percent of their annual online revenue in December — with nearly 20 percent arriving on December 31 alone.¹

Because the tax side is where cross-border plans get complicated, see our cross-border tax and estate planning service.

The motivations blend emotion and strategy: the cultural emphasis on generosity, the satisfaction of giving back at year-end, and the potential for tax advantages tied to donations made before the calendar year closes.

From the holiday spirit of community to the financial incentives of tax season, donors across North America share similar habits — and nonprofits know it. Many organizations amplify outreach campaigns during December to capture this wave of goodwill.

North Americans Are Generous

Regardless of motivation, giving remains strong. In 2024, total charitable contributions in the United States exceeded USD 590 billion, a 6.3 percent rise from 2023 — the largest increase since 2021.² In Canada, individual donations and foundation grants also grew steadily, particularly among younger and higher-income households, according to Imagine Canada data.

Giving Tuesday, the global day of generosity following U.S. Thanksgiving, continues to grow across both countries. In 2024, nonprofits raised a record USD 3.6 billion, up 16 percent from 2023. Canadians participated through platforms such as CanadaHelps.org and CharityVillage. This year, Giving Tuesday 2025 falls on December 2.

Who Is Giving — and Where It’s Going

Individuals continue to provide most charitable dollars — about 66 percent in the U.S. last year — followed by foundations (19 percent), bequests (8 percent), and corporations (7 percent). In Canada, individuals similarly account for the majority of donations, while corporate giving is rising through matching-gift and community-impact programs.

Much of the funding supports religion, human services, and education, with growth also seen in public-benefit, health, and international causes.

Looking ahead, demographic shifts will matter: analysts project USD 124 trillion in wealth transfer across North America by 2048, with an estimated USD 18 trillion flowing to charitable causes.³

Choosing the Right Charity

With thousands of organizations seeking support, choosing where to give can be daunting.

• Do your homework: Use reliable databases such as Charity Navigator, GuideStar, or Charity Intelligence Canada to review transparency and financial stewardship.
• Understand mission & impact: Look for measurable outcomes aligned with your values.
• Follow your passions: Supporting causes that resonate personally often sustains long-term generosity.
• Get involved: Volunteering or attending events deepens connection and insight into a charity’s work.

Tax Law Changes on the Horizon

Tax treatment for charitable giving is evolving on both sides of the border.

In the U.S. — The One Big Beautiful Bill Act (OBBB) introduces new limits and opportunities starting 2026:

• Non-itemizers may deduct up to USD 1,000 (single) / USD 2,000 (joint).
• Itemizers can deduct contributions exceeding 0.5 percent of adjusted gross income.
• High-income earners may face a 35 percent cap on deduction value.
• Corporations can deduct only contributions above 1 percent of income.⁴

In Canada — Forthcoming Alternative Minimum Tax (AMT) updates may affect the value of donation tax credits for high-income earners beginning 2026. Donors should review how these adjustments interact with provincial credit rates and overall tax planning.

If you or your business makes sizable charitable contributions, reviewing your approach before 2026 can help preserve tax efficiency.

Tax-Advantaged Giving Strategies

We’ve helped clients in both countries align generosity with financial strategy. Options include:

• Qualified Charitable Distributions (QCDs) / RRSP Withdrawals for Gifts – In the U.S., those 70½ or older may donate up to USD 108,000 (USD 216,000 per couple) directly from an IRA in 2025.⁵ In Canada, retirees may consider donating from a Registered Retirement Income Fund (RRIF) withdrawal or naming a charity as beneficiary of an RRSP or TFSA.
• Donating Appreciated Securities – Transferring publicly traded shares directly to a charity may eliminate capital-gains tax in both countries.
• Donor-Advised Funds (DAFs) – Contribute cash or securities for an immediate deduction (U.S.) or credit (Canada), then recommend grants over time.⁶
• Charitable Trusts – Structures such as Charitable Remainder Trusts (CRTs) and Charitable Lead Trusts (CLTs) can provide lifetime income while benefiting charities and reducing estate taxes.⁷ ⁸
• Bundling Contributions – Combining several years of donations into one year may allow U.S. donors to itemize or Canadians to exceed federal/provincial thresholds for greater credits.⁹

Because rules differ between the IRS and the Canada Revenue Agency (CRA), personalized advice is essential.

Your Impact: Strategy + Heart

Whether you give across the street or across borders, thoughtful philanthropy can strengthen communities and align with your financial goals. By planning ahead and coordinating with professionals, you can make 2025 a year of impact — and start 2026 with confidence.

If you’d like to discuss strategies tailored to your family or business, we’d be happy to help.

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SourcesDonorBox.org, August 21, 2025
https://donorbox.org/nonprofit-blog/end-of-year-giving-statistics?utm_source=chatgpt.com 2. The Benefactor Group, September 2025The BenefactorGroup.com, September 2025
https://benefactorgroup.com/givingusa2025/Cerulli.com, December 5, 2024
https://www.cerulli.com/press-releases/cerulli-anticipates-124-trillion-in-wealth-will-transfer-through-2048
Fidelitycharitable.org, July 2025
https://www.fidelitycharitable.org/articles/obbb-tax-reform.html
Schwab.com, December 13, 2024. Once you reach age 73, you must begin taking the required minimum distributions from a traditional IRA in most circumstances. Withdrawals are taxed as ordinary income and, if taken before age 59½, may be subject to a 10% federal income tax penalty. Contributions to a traditional IRA may be fully or partially deductible, depending on your adjusted gross income.
https://www.schwab.com/learn/story/reducing-rmds-with-qcds?msockid=37a2e58496ac672b39a4f4af9742667d
Fidelity.com, September 2025
https://www.fidelitycharitable.org/guidance/philanthropy/what-is-a-donor-advised-fund.html?immid=PCD&account=&campaign=31354684&adgroup=2956185337&keyword=donor%20advised%20funds%20meaning&msclkid=a23a27257d9a141c207b4ff5fafc3d9c&utm_source=bing&utm_medium=cpc&utm_campaign=DAF_Primer_Bing&utm_term=donor%20advised%20funds%20meaning&utm_content=Donor_AdvisedIRS.gov, September 2025
https://www.irs.gov/charities-non-profits/charitable-remainder-trustsAccountingInsights.org, February 8, 2025
https://accountinginsights.org/what-is-a-charitable-lead-trust-and-how-does-it-work/SturgillTurner.com, September 2025
https://www.sturgillturner.com/our-insights/charitable-giving-tax-efficient-planning-2025DisclaimerThe information in this article is for general educational purposes only and is not intended to provide, and should not be relied on for, tax, legal, or investment advice.
Tax laws differ between the United States and Canada and are subject to change. Eligibility for deductions or credits varies by jurisdiction and personal situation.
Readers should consult qualified tax and legal professionals in their country or province/state of residence before making charitable or financial decisions.© 2025 Sartorial Wealth Inc. All rights reserved.