Excerpts from Atlanta Jewish Foundation Giving Tips | November 13th, 2025
As we enter 2026, new legislation – the One Big Beautiful Bill Act (OBBBA) – is poised to reshape the philanthropic landscape in ways that demand attention and action from donors. This is a moment to recalibrate, reimagine, and recommit.
What Is the One Big Beautiful Bill?
OBBBA introduces sweeping changes to charitable tax deductions, many of which take effect in 2026. Key changes affecting charitable giving include:
- Above-the-Line Deduction for Non-Itemizers: Starting in 2026, taxpayers who do not itemize can deduct up to $1,000 (single) or $2,000 (joint) in cash gifts to qualified charities – donor advised funds (DAFs) are excluded.
- New Floor for Itemized Deductions: Itemizers can only deduct charitable gifts that exceed 0.5% of their adjusted gross income (AGI).
- Cap on Tax Benefits for High-Income Donors: Those in the 37% tax bracket will see their charitable deduction capped at 35% of the gift’s value.
How the New Legislation Affects Donors
These upcoming changes mean your charitable gifts might be worth more in 2025. Here are the top three ways to maximize both tax benefits and impact before year-end:
1. Give Appreciated Assets
Many people think cash is the only way to give – but appreciated assets like stocks, real estate, or other investments can sometimes be the smarter choice.
If you’ve held a stock for more than a year and it’s gone up in value, you can donate it directly to a charity. That way you avoid capital gains tax and receive a deduction for the full fair market value. That’s a double win! If you’re selling a business, real estate interest, or other highly appreciated assets, think about where philanthropy fits in – not only as an act of generosity, but as a tax-saving strategy.
2. Bunching Works Best Before the Rules Change
One powerful strategy is “bunching” – combining multiple years of charitable contributions in a single tax year. This allows donors to exceed the standard deduction threshold and secure a larger itemized deduction.
3. Roll Over Your IRA
If you are 70½ or older, you can transfer up to $108,000 (or $216,000 for married couples) tax-free from your IRA directly to a qualified charity. This is called a Qualified Charitable Contribution (or QCD). If you are 73 or older, this is also a great way to satisfy your RMD (Required Minimum Distribution) without increasing your taxable income.