As you already know, the One Big Beautiful Bill Act was signed into law by President Trump on July 4, 2025.
With nearly 900 pages of provisions, the legislation reshapes policy across major sectors of the U.S. economy, including philanthropy and nonprofits. One way it will impact the field is through several provisions affecting charitable giving incentives for donors.
Five key provisions for charitable giving are of particular importance to local philanthropists and the nonprofits they support, as well as attorneys, CPAs, and financial advisors who work with clients to assist them with their philanthropy.
- The larger standard deductions from 2017 have been made permanent, increasing the standard deduction for 2025 to $15,750 for single filers and $31,500 to taxpayers who are married and filing jointly.
- Individuals who itemize may take charitable deductions if their charitable contributions exceed 0.5% of their adjusted gross income (1 percent for corporations).
- Taxpayers in the top bracket can only claim a 35 percent tax deduction for charitable gifts.
- After 2025, non-itemizers are allowed to take a charitable deduction of $1,000 for single filers and $2,000 for taxpayers who are married and filing jointly, in addition to the standard deduction.
- The increase in the unified credit and generation-skipping transfer tax exemption threshold is made permanent. The 2025 exemption is $13.99 million for single filers and $27.98 million married filing jointly; in 2026 it rises to $15 million and $30 million.
The Community Foundation is here to help donors and their professional advisors make more possible through strategic philanthropy. Sign up for our email newsletter below or contact a member of our team for more news and insights about charitable giving, grant opportunities, community issues, and more.
Please note: This news update is provided for informational purposes only. It is not intended as legal, accounting, or financial planning advice.