The One Big Beautiful Bill Act (OBBBA), signed into law on July 4, 2025, introduces important tax changes that affect charitable giving. This summary is intended to help nonprofit staff and grant recipients understand the key points and communicate effectively with donors, especially those who do not itemize deductions.
Key Changes and Talking Points
Standard Deduction Is Higher and Permanent
The standard deduction amounts for 2025 are now permanent: $15,750 for single filers and $31,500 for married couples filing jointly. Additionally, the bonus standard deduction for taxpayers age 65 and older continues through 2028. Because more people will take the standard deduction instead of itemizing, fewer donors will be able to deduct charitable gifts on their taxes.
Talking point: “Even if you don’t itemize, your gift makes a big difference—and the reasons people give go far beyond tax benefits.”
New Charitable Deduction for Non-Itemizers (Effective 2026)
Starting in 2026, taxpayers who do not itemize can deduct up to $1,000 (single) or $2,000 (married filing jointly) for charitable gifts. Note that this deduction does not apply to gifts to donor-advised funds. This provision is permanent.
Talking point: “You don’t need to itemize to deduct charitable giving anymore. Starting in 2026, your gift of $1,000 to [OUR NONPROFIT] could provide [example: 150 backpacks of food], and you may also receive a small tax break.”
Estate Tax Exemption Will Stay High
The higher estate tax exemption amounts are now permanent, with $13.99 million for individuals and $27.98 million for married couples in 2025, increasing to $15 million and $30 million respectively in 2026. This mainly affects very high-net-worth donors and provides more time for legacy gift planning.
Talking point:“If you are considering leaving a gift in your will, now is a great time to plan ahead while the exemption remains high.”
Giving Trends and Why This Matters
Since the 2017 Tax Cuts and Jobs Act, the percentage of taxpayers who itemize has dropped below 10%, and the number of Americans who give to charity annually has fallen below 50%. Losing the deduction discouraged some donors, but this new law offers an opportunity to encourage giving even among non-itemizers.
Talking point for staff, board, and volunteers: “You can help restore the habit of giving by focusing on meaning and impact—not just tax perks. Now that a small deduction is available to all, it’s a great time to invite more people into philanthropy.”
Final Thought...
Giving is about connection and impact, not just tax deductions. Your supporters care about making sure your needs are met as you continue to do GOOD where you are planted. Whether someone gives $100 or $1,000, their support helps your nonprofit continue your vital work. Thank you for helping share this message and inspire generosity in our community. Please reach out to our team if you have any questions or need additional resources for inspiring giving.
