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One, Big, Beautiful Bill: The New Landscape of Charitable Deductions

September 29, 2025

On July 4, 2025, the U.S. Congress passed the One, Big, Beautiful Bill Act (H.R.1), a sweeping reform of the federal tax code that will impact charitable giving.  

Corporate Giving 

One of the bill’s most notable changes is the introduction of a new floor for corporate charitable deductions. Beginning in 2026, corporations can only deduct charitable contributions that exceed 1% of their taxable income, although the overall 10% cap remains unchanged. This shift encourages companies to be more strategic and intentional with their giving, potentially prioritizing high-impact, mission-aligned initiatives over smaller, ad hoc donations. 

New Incentives and Limitations for Individual Donors 

Starting with tax years that begin after December 31, 2025, the new law introduces several changes that affect individual donors, including those giving internationally: 

  • The new law introduces a standard deduction of $1,000 for individuals who do not itemize their deductions, and $2,000 for those filing jointly. However, this deduction does not apply to contributions made to donor-advised funds (DAFs). 
  • The tax benefit for top earners is now capped at 35 cents per dollar of itemized deductions, down from 37 cents.   
  • Itemizing taxpayers will face a 0.5% floor on charitable deductions, meaning only contributions exceeding 0.5% of their adjusted gross income (AGI) will be deductible. 

As 2025 draws to a close, donors and advisors should take time to reassess their giving strategies considering new thresholds and incentives, consult with experts to ensure compliance, and explore how to maximize both impact and tax efficiency.   

Additional Resources 

For further reading and expert analysis on the One, Big, Beautiful Bill and its implications for philanthropy and nonprofit organizations, explore the following: