How OBBBA Changes Charitable Giving in 2025–2026

The One Big Beautiful Bill Act (OBBBA) reshapes charitable giving rules beginning in 2026, making 2025 a crucial planning year for maximizing tax benefits. Key changes include a new universal deduction for non-itemizers, a 0.5% AGI floor for itemizers, and a 35% cap on the tax benefit of itemized deductions for those in the top tax bracket.

Taxpayers may benefit from accelerating contributions into 2025 or using strategies such as donor-advised funds, bunching, or qualified charitable distributions. These tools can help preserve deduction value and avoid new limitations taking effect in 2026.