The Giving Season – Charitable Options and the Charitable Investment Account

When it comes to charitable fundraising and giving, the final quarter of the year is the busiest season for investors. Successful philanthropy depends on the goals an investor is trying to achieve, whether these are social, wealth transfer, personal, or tax deductibility objectives. The passage of the One Big Beautiful Bill Act (OBBBA) creates new tax rules and opportunities for investors to reach those goals. This article provides insight into the impact of the OBBBA on philanthropic giving and how the newly available Janus Henderson Charitable Investment Account enables advisors and their clients to maximize philanthropic success.

OBBBA: Key changes to charitable giving laws

The OBBBA introduced four important changes to tax laws surrounding charitable giving:

1. Standard deduction: Under Section 70424 of OBBBA, taxpayers who take the standard deduction can claim a deduction for charitable contributions of up to $1,000 for single filers and $2,000 for joint filers.
2. Itemized deductions: The individual deduction limit for cash contributions made to public charities is 60% of a taxpayer’s adjusted gross income (AGI). This limit was previously scheduled to “sunset” at the end of 2025 and revert to 50%. Section 70425 of OBBBA extends the current 60% limit.
3. 0.05% floor: For individual taxpayers who itemize deductions, per Section 70425 of OBBBA, only charitable gifts exceeding 0.05% of AGI are now deductible – that is $500 for every $100,000 in AGI.
4. Deductibility cap: For itemizers, Section 70111 of OBBBA also caps the benefit of the total itemized deductions at $0.35 per dollar for taxpayers in the 37% tax bracket.

These changes for individual taxpayers are effective for taxable years beginning after December 31, 2025.

Charitable giving options

Charitably inclined investors have a host of charitable giving options available, including the following:

• Direct cash donations
• Donations of appreciated assets
• Gifts “with benefits”
• Qualified charitable distributions (QCDs)
• Charitable gift annuities
• Charitable remainder trusts (CRTs)
• Charitable lead trusts (CLTs)
• Donor-advised funds (DAFs)
• Private foundations (PFs)

For more information on any of these options please reach out to your JHI representative.

Understanding donor-advised funds

DAFs are charitable accounts funded by individual donors but maintained and operated by a charity. Once a donor makes a contribution, the sponsoring charity is responsible for maintaining the account, investing contributions, and distributing funds in line with the donor’s advice. Distributions are made whenever and to whomever the donor and the sponsoring charity direct. Unlike private foundations, which require a 5% distribution each year, the law does not require DAF funds to be deployed – ever. DAFs are treated as public charities for tax-deduction purposes; however, it is important to remember that DAFs are not qualified recipients of Qualified Charitable Distributions (QCD). As a result, DAFs cannot receive qualified distributions from retirement accounts or from non-itemizers seeking to take advantage of the new $1,000 below-the-line deduction for cash contributions.

Janus Henderson Charitable Investment Account

Selecting the right DAF can be as important as selecting the eventual charitable recipients. Investors who choose to donate to a Janus Henderson Charitable Investment Account become part of a collective effort aimed at fostering a brighter future for all.

How it works:

• Janus Henderson/Givinga charitable collaboration: Givinga is a digital platform that supports Janus Henderson’s Charitable Investment Account. Givinga provides a portal for receiving and disbursing contributions while maintaining its own 501(c)(3) foundation as the underlying sponsoring charity. Janus Henderson provides investment expertise and oversight for contributed funds.
• Tax-deductible contributions: Your journey begins with a tax-deductible contribution to your Charitable Investment Account (CIA). This initial step may fulfill a component of your financial planning, align with your philanthropic goals, and offers tax benefits.
• Tax-free growth: Following your contribution, your investment has the potential to grow taxfree, amplifying the impact of your generosity. This potential growth could enhance the capacity of your future disbursements, enabling you to provide even more support to the causes you care about.
• Seamless, client-directed charitable giving: One of the most empowering aspects of Janus Henderson Charitable Investment Accounts is the ability to choose where your contributions go. You have the freedom to select your preferred nonprofit organization, ensuring that your philanthropic vision is realized exactly as you envision it.

			Amount deductible
Fund your CIA in 2025 “bunched”	Annual giving (2026-2030)	5-year total giving	2025	2026-2030
$5,000	$0	$5,000	$5,000	$0
$0	$1,000	$5,000	$0	$2,500

Make a difference

To maximize deductibility and avoid application of the 0.5% floor, we believe itemizers should “pre-fund” charitable contributions into their Charitable Investment Account this year. A charitable gift of $5,000 made in 2025 generates a $5,000 deduction. That same $5,000 charitable gift made in $1000 increments per year beginning in 2026 will create a total deduction of $2,500. For a potential better tax result, “bunch” those charitable gifts into your Charitable Investment Account this year and make gifts to charity from your account over the coming five years.

The OBBBA has altered some of the rules of philanthropy. Don’t wait until year-end to secure the tax benefits provided by the new law. Your donation into a Janus Henderson Charitable Investment Account is a testament to your commitment to making a difference. It’s an opportunity to join a community of like-minded individuals and organizations, all dedicated to creating lasting, positive change across the globe.

To learn more about Janus Henderson Charitable, click here.