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What It Means for Your Giving Plans

On July 4th 2025, President Trump signed into law the One Big Beautiful Bill Act (OBBB). While the bill primarily addresses broad tax policy, a few key provisions may influence charitable giving—particularly when it comes to planned and estate gifts. The good news? Most donors will see little change, and the tools to leave a powerful legacy remain fully intact.

What’s Changing (and What Isn’t)

As of January 1, 2026 a few new rules are in effect:

  • A new “floor” for charitable deductions means only gifts above 0.5% of your Adjusted Gross Income will be deductible. For example, if you earn $200,000, the first $1,000 of giving won’t count as a deduction. This change is minor for most households.
  • High-income donors (those in the top tax bracket) will see a slight reduction in the value of their itemized deductions – including the charitable deduction: $0.35 in tax benefit per dollar donated instead of $0.37. This change impacts less than 1% of taxpayers and is unlikely to affect most giving decisions.
  • The 60% of AGI limit for cash gifts is now permanent—allowing donors to deduct more of their charitable giving in high-contribution years.

For Non-Itemizers: A Modest New Deduction

Most Americans do not itemize deductions. Starting in 2026, the OBBB allows non-itemizers to deduct up to $1,000 in charitable contributions of cash—or $2,000 for joint filers. This applies to gifts made directly to charitable organizations but does not apply to gifts to donor-advised funds.

While this deduction is small, it recognizes and rewards the generosity of everyday givers. Combined with the permanently increased standard deduction—$32,200 for couples and $16,100 for individuals in 2026—it gives more donors an incentive to give generously, even if they don’t itemize.

Legacy Giving Remains a Smart Strategy

The OBBBA also locks in a higher estate and gift tax exemption—estimated at $15 million per person ($30 million for couples). The OBBB also locks in a higher estate and gift tax exemption—estimated at $15 million per person ($30 million for couples). That means fewer estates will owe federal estate taxes. Still, charitable estate planning offers powerful benefits. For example, naming a charity as a beneficiary of your retirement account remains one of the most tax-wise ways to give.

Your Legacy Still Matters

The tax law may change—but your impact doesn’t. Donors give because they believe in something greater than themselves. If you're considering a planned gift or want help navigating the new rules, we're here to support you. Let’s create a legacy that reflects your values—and changes lives.