Key Tax Changes Impacting Philanthropy

The One Big Beautiful Bill (OBBB) Act was passed on July 4th, 2025. Below, we’ve highlighted three key changes that may impact philanthropy and giving starting January 1st, 2026.

  1. Larger Universal Charitable Deduction—More Donors Get Tax Benefits
    Starting in 2026, non-itemizing taxpayers can deduct up to $1,000 ($2,000 for married couples) for charitable gifts. Charitable deductions will no longer be restricted to those who itemize deductions. This makes it easier for donors to realize tax benefits from supporting charities.
  2. New Minimum for Itemized Charitable Deductions
    If someone itemizes their deductions, starting in 2026, a “floor” applies to their deduction for charitable contributions. Specifically, the charitable contribution deduction will be reduced by an amount equal to 0.5% of their adjusted gross income (AGI). For example, if the AGI is $200,000, the first $1,000 of charitable contributions in a year will not be deductible; only giving above that amount qualifies for a tax benefit.
  3. Estate & Gift Tax Exemption Increases
    The federal estate and gift tax exemption rises to $15 million per person (indexed for inflation), meaning very few estates will owe federal estate tax. Some states, however, have much lower thresholds. For donors with large estates, planned giving and legacy gifts may offer additional benefits.

What This Means for Planned Giving
With new changes taking effect, giving through a will, trust, IRA, or making lifetime gifts of appreciated assets remain powerful ways to support causes you care about.

For more detailed information or to discuss the best planned giving options for your situation, we recommend consulting with your tax or estate advisor. Our team is also happy to answer questions about how these changes might affect your giving plans.

This message is for educational purposes only and is not legal or tax advice. Please consult your tax, legal, or financial advisor about how 2025 year-end giving and the 2026 federal tax changes may affect your situation.