Major U.S. charities warn they may struggle to meet rising demand for food, coats, and gifts as the 2025 holiday season begins amid falling donations, high costs, and the lingering financial strain of the year's prolonged Democrat-led government shutdown.
The Trump administration's new tax rules next year under the Big, Beautiful Bill Act may also affect contributions.
The act creates a new above-the-line charitable deduction of up to $1,000 for single filers or $2,000 for couples who do not itemize.
It also requires itemizers to exceed a 0.5% floor of adjusted gross income to deduct gifts and lowers the top deduction rate from about 37% to 35%.
Analysts say the changes may encourage small donations while reducing incentives for larger contributions.
Nonetheless, charities are urging Americans who can give to do so soon.
As rising prices and the lingering effects of the nation's longest-ever government shutdown squeeze Americans' budgets, many are unable to give back this holiday season.
Charities report growing strain.
The Salvation Army has launched its annual Red Kettle campaign, but cannot yet share fundraising totals, said national community relations and development secretary Dale Bannon.
The organization serves an estimated 28 million Americans annually and will need to exceed last year's approximately $100 million haul to meet rising demand.
The Toy Foundation expects unusually high demand this year.
"[W]ith the collective involvement of the toy industry, we are able to reach more children than ever, but demand continues to outpace supply," said Erin Wright, marketing communications manager.
"[E]ven small contributions add meaningful change."
The One Warm Coat reports a nearly 25% increase in nonprofit partners applying for winter coats, rising from about 1,500 agencies to some 1,900.
President and CEO Beth Amodio said the organization is hopeful that more coat drives and donations will be organized.
Meanwhile, in the most recent survey from Feeding America, 95% of its partner food banks reported equal or greater demand in October compared with September, the largest month-to-month increase recorded since data collection began in 2021.
Chief marketing and communications officer Monica Lopez Gonzalez said the surge reflects "the shock that the shutdown caused for neighbors needing food assistance and the food banks and agencies working to provide support."
Jim Thomas ✉
Jim Thomas is a writer based in Indiana. He holds a bachelor's degree in Political Science, a law degree from U.I.C. Law School, and has practiced law for more than 20 years.
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