As of July 4th, we have a new tax law officially named the One Big Beautiful Bill Act (OBBBA). While the law primarily addresses broad tax policy, a few key provisions may influence charitable giving—particularly when it comes to planned and estate gifts. The good news? Most donors will see little change, and the tools to leave a lasting legacy remain fully intact.

What’s Changing (and What Isn’t)

Starting in 2026, a few rules take effect:

  • The SALT (State and Local Tax) deduction cap has increased to $40,000 for donors earning $500,000 or less (with a phased down cap at $500,000-$600,000), and both the cap and income threshold will increase by 1% annually until 2030, when it will revert back to $10,000.
  • High-income donors (those in the top tax bracket) will see a slight reduction in the value of their charitable deductions: $0.35 in tax benefit per dollar donated instead of $0.37. This change impacts less than 1% of taxpayers and is unlikely to affect most giving decisions.
  • A new “floor” for charitable deductions means only gifts above 0.5% of your income will be deductible. For example, if you earn $200,000, the first $1,000 of giving won’t count as a deduction. This change is minor for most households.
  • The 60% of AGI limit for cash gifts is now permanent—allowing donors to deduct more of their charitable giving in high-contribution years.

For Non-Itemizers: A Modest New Deduction

Most Americans don’t itemize deductions. Starting in 2026, the OBBBA allows non-itemizers to deduct up to $1,000 in charitable contributions—or $2,000 for joint filers. This does not apply to gifts to donor-advised funds, but it does apply to gifts made directly to charitable organizations.

This deduction recognizes and rewards the generosity of everyday givers. Combined with the permanently increased standard deduction—about $31,500 for couples and $15,750 for individuals in 2026—it gives more donors an incentive to give generously, even if they don’t itemize.

Legacy Giving Remains a Smart Strategy

The OBBBA also locks in a higher estate and gift tax exemption—estimated at $15 million per person ($30 million for couples). That means fewer estates will owe federal estate taxes. Still, charitable estate planning offers powerful benefits. For example, naming a charity as a beneficiary of your retirement account remains one of the most tax-wise ways to give.

Your Legacy Still Matters

The tax law may change—but your impact doesn’t. Donors give because they believe in something greater than themselves. If you're considering a planned gift or want help navigating the new rules, we're here to support you. Let’s create a legacy that reflects your values—and changes lives.