The One Big Beautiful Bill Act, signed into law on July 4, 2025, contains changes that may impact how or when you choose to make a charitable gift. Here’s what to expect starting in 2026:
- A new deduction for nonitemizers. Claim an above-the-line deduction of $1,000 ($2,000 for joint filers) for cash gifts to qualified public charities (excluding donor-advised funds). If you don’t typically itemize your taxes, this is a new opportunity to save.
- A new cap on deductions for top earners. Itemizers in the 37% tax bracket will see their deductions capped at 35%. If you are in the highest tax bracket, consider giving now instead of waiting.
- A new minimum giving threshold. All itemizers must give at least 0.5% of their adjusted gross income before claiming a deduction. You may want to give in 2025—or even bunch future gifts into this tax year.
One thing hasn’t changed—charitable giving is still a powerful way to make a difference, create a legacy, and make the most of tax-smart planning.
