Understanding the New Tax Law and Your Charitable Giving

The “One Big Beautiful Bill Act” (OBBBA), signed into law on July 4, 2025, brings clarity and new opportunities for your philanthropy. Our goal is to help you understand how these changes may impact your giving and how we can support you.

A More Predictable Planning Landscape

The new law makes several key provisions of the 2017 Tax Cuts and Jobs Act permanent, providing stability for long-term planning:

• Estate & Gift Tax Exemption: Rising to $15 million per person ($30 million per couple) in 2026.
• Standard Deduction: Increasing to $15,750 (single) and $31,500 (married couples) in 2025.
• Top Income Tax Rate: The 37% top rate is now permanent.

This stability can make it easier to plan ahead, whether you are thinking about lifetime giving or legacy gifts.

New Opportunities for Charitable Giving

Starting in 2026, several new rules will take effect that may influence your charitable strategies:

• For High-Income Donors: The tax benefit will be capped at $0.35 per dollar of itemized deductions (down from $0.37). Consider 2025 for larger gifts.
• For Non-Itemizers: A new deduction of up to $1,000 (single) or $2,000 (married) for cash gifts is available beginning in 2026.
• For Itemizers: A new 0.5% of AGI floor for charitable deductions could make “bunching” gifts into one year a smart strategy to receive tax benefits.
• For Donors Age 65+: Between 2025–2028, a $6,000 deduction is available whether or not you itemize.

We’re Here to Help

Generosity starts with your values, but smart planning can help you maximize your impact. We are available to help you explore how these changes might affect your giving goals and to work with your professional advisors. Contact us to learn more.