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While planning your charitable giving, be sure to consider the potential impact of the One Big Beautiful Bill Act (OBBBA), signed into law on July 4.
Several provisions of this new law could affect the tax deductibility of your charitable gifts. Let’s look at some key changes made by the OBBBA and explore some strategies to help maximize the tax efficiency of your giving.
Above-the-line deductions
Starting with the 2026 tax year, the OBBBA restores the expired COVID-era “above-the-line” charitable deduction for non-itemizers and increases it to $1,000 for single filers and $2,000 for joint filers (up from $300 and $600, respectively). That means you don’t have to itemize deductions to enjoy the tax benefits of charitable giving. Note, however, that this deduction isn’t available for contributions to donor-advised funds or donations to private nonoperating foundations.
Potential strategy: If you’re among the 90% or so of taxpayers who don’t itemize, consider putting off charitable gifts until early next year to take advantage of above-the-line deductions.
Note: Effective in 2027, the OBBBA also establishes a tax credit of up to $1,700 for donations to specific organizations that grant scholarships to K–12 schools.
Several provisions of this new law could affect the tax deductibility of your charitable gifts. Let’s look at some key changes made by the OBBBA and explore some strategies to help maximize the tax efficiency of your giving.
Above-the-line deductions
Starting with the 2026 tax year, the OBBBA restores the expired COVID-era “above-the-line” charitable deduction for non-itemizers and increases it to $1,000 for single filers and $2,000 for joint filers (up from $300 and $600, respectively). That means you don’t have to itemize deductions to enjoy the tax benefits of charitable giving. Note, however, that this deduction isn’t available for contributions to donor-advised funds or donations to private nonoperating foundations.
Potential strategy: If you’re among the 90% or so of taxpayers who don’t itemize, consider putting off charitable gifts until early next year to take advantage of above-the-line deductions.
Note: Effective in 2027, the OBBBA also establishes a tax credit of up to $1,700 for donations to specific organizations that grant scholarships to K–12 schools.
