Passed in July 2025, the One Big Beautiful Bill Act affects many aspects of the tax code — especially charitable giving.
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.
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.
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.
Giving through a will, trust, IRA, or making lifetime gifts of appreciated assets remains a powerful way to support our mission.
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.
Watch this video to learn more about the smartest ways to give today:
