By Lesley Roberts, Philanthropic Advisor
Corporate giving just got more complex. Here’s what business owners need to know about the One Big Beautiful Bill Act:
1. A new “floor” arrives in 2026.
Charitable gifts won’t be deductible until they exceed 1% of taxable income. Example: A company with $100 million in taxable income must give over $1 million before deductions kick in.
2. The “ceiling” remains.
Corporations can deduct up to 10% of taxable income. Now, both the floor and ceiling apply, making planning trickier. Carryforwards are allowed but still subject to these rules.
3. Don’t wait.
Review giving strategies now. Consider using a corporate donor advised fund at the Community Foundation to maximize 2025 deductions before the floor takes effect.
4. Remember sponsorships.
Corporate sponsorships tied to marketing benefits can still be deducted as business expenses. Just be sure both your company and the nonprofit document them correctly.
Let’s work together to build a giving plan that fits your company’s goals and takes advantage of current opportunities.