How do excess charitable deductions to a donor-advised fund carry forward for single filers in 2025?
Executive summary
For single filers making deductible gifts to a donor-advised fund (DAF) in 2025, cash gifts are deductible up to 60% of adjusted gross income (AGI) and appreciated long‑term noncash gifts generally up to 30% of AGI; any amount that exceeds those limits can be carried forward and claimed over the next five tax years under prevailing IRS rules [1] [2]. Contributions to a DAF made in 2025 produce an immediate deduction in that year (if the donation meets IRS requirements), and excess deductible amounts from 2025 will be subject to normal carryforward mechanics — but may face new floors or caps when applied in 2026 and later, so timing and modeling matter [3] [2] [4].
1. How the 2025 deduction ceiling for DAF gifts works in practice
Under the law governing charitable deductions in 2025, a cash gift to a public charity or sponsoring organization of a DAF is deductible by an itemizing donor up to 60% of AGI, while long‑held appreciated noncash gifts are limited to 30% (sources summarizing IRS guidance) [1] [5]. When a single filer contributes to a DAF before December 31, 2025, that contribution is treated as made in 2025 for deduction purposes and — if the DAF sponsor has exclusive legal control over the assets and other IRS requirements are met — the donor can claim the deduction that year [3] [5].
2. Carryforward mechanics: five years and the annual ceilings
If a donor’s 2025 DAF contribution exceeds the applicable AGI percentage limit, the excess may be carried forward and deducted in subsequent tax years for up to five years, subject in each carryforward year to the same percentage limitations based on that year’s AGI [2] [6]. Practically, that means a large 2025 DAF gift that cannot be fully used against 2025 AGI can still reduce taxable income in 2026–2029, but only to the extent allowed by each later year’s AGI‑based ceilings [2].
3. Why 2025 is strategically different from 2026 and how that affects carryovers
Multiple professional advisors and charity platforms argue that 2025 is a strategic year to bunch giving into a DAF because legislation taking effect for tax years after Dec. 31, 2025 (the One Big Beautiful Bill Act, OBBBA) introduces a new charitable deduction floor and other limits that will change how itemized deductions operate in 2026 and beyond [7] [8]. Legal analysis suggests that any charitable deduction amounts carried forward from 2025 into 2026 and later will likely be subject to the new 0.5% floor and other statutory language, potentially reducing the usable portion of a carryforward in those years [4]. That means a carryforward that looks straightforward under 2025 rules may be whittled down when applied under the post‑2025 regime [4].
4. Operational limits, exclusions, and IRS cautions
Donors should remember that not all gifts or DAF arrangements qualify for the deduction: the IRS publication on DAFs warns that improper arrangements can cause disallowances, excise taxes, or even revocation of exempt status for sponsoring organizations — so compliance with documentation and control rules is essential to preserve the deduction and any subsequent carryforward [3] [9]. Separately, the new OBBBA above‑the‑line deduction for non‑itemizers beginning in 2026 explicitly excludes gifts to DAFs, making DAFs a tool principally for itemizers and further underscoring why some advisors counsel front‑loading to 2025 [10] [11].
5. Competing narratives and practical planning takeaways
Charities and wealth managers emphatically promote bunching into DAFs in 2025 to “lock in” current rules and stretch grants over time, which can be a genuine tax planning strategy but also serves organizational fundraising interests by encouraging pre‑2026 donations [7] [5]. Tax professionals present a more mechanistic caution: while five‑year carryforwards remain available, donors must model year‑by‑year AGI limits and the impending 2026 floors; the net value of a carryforward can differ materially depending on future income, changes in law interpretation, and IRS compliance outcomes [2] [4].
Conclusion
For single filers in 2025, excess deductible contributions to a donor‑advised fund carry forward for up to five years and are applied against the applicable AGI percentage limits in each carryforward year [2] [1]. However, new statutory rules effective in 2026 may constrain the usable portion of those carryforwards, so donors should verify DAF documentation, model future AGI limits, and consult a tax advisor to balance present deduction value against future carryforward risk and charitable intentions [3] [4] [7].