The One Big Beautiful Bill Act was signed into law by President Trump on July 4, 2025, after the House of Representatives approved the Senate’s changes to H.R. 1, which passed the House by a narrow margin in May. 

The OBBBA, with nearly 900 pages of provisions, reshapes policy across major sectors of the U.S. economy. Included in the OBBBA are several provisions that impact philanthropy. Three major takeaways are of particular importance as the Community Foundation helps donors, fund holders, and nonprofits, as well as attorneys, CPAs, and financial advisors–navigate charitable planning opportunities over the months and years ahead. 

(Notably, the OBBBA omits several provisions that appeared in previous versions of the legislation, such as a proposed increase to the net investment income tax on private foundations.) 

Insight #1: Standard deduction goes higher

What’s in the OBBBA?

The new law makes permanent the standard deduction increases under the Tax Cuts and Jobs Act of 2017 (TCJA), increasing the standard deduction for 2025 to $15,750 for single filers and $31,500 to taxpayers who are married and filing jointly. The new law also expands the “bonus” deduction for taxpayers 65 and older through 2028.

What’s more, under the new law, individuals who itemize may take charitable deductions only to the extent the charitable deductions exceed 0.5% of adjusted gross income. Furthermore, taxpayers in the top bracket can only claim a 35 percent tax deduction for charitable gifts instead of the full 37 percent that would otherwise apply to their income tax rate. Note also that the final bill permanently extended the 60% of adjusted gross income contribution limitation for cash gifts made to certain qualifying charities.

What does this mean for charitable giving?

With even fewer taxpayers eligible to itemize, and deductions capped for high-income earners, we’re likely to see a continuation of the chilling effect on charitable giving that occurred in the wake of the TCJA.

What can you do?

If you regularly support charities, it’s important to continue to do so whether or not you’re benefiting from a tax deduction. Our community needs you, now more than ever. If you’re a nonprofit, or if you’re an attorney, CPA, or financial advisor who works with charitable clients, remember that people do not give to charity solely to secure a tax deduction. Keep in mind that many other factors motivate charitable giving, and philanthropy is an important priority for many families. (This article in the Stanford Social Innovation Review has stood the test of time.)

Insight #2: Deduction for non-itemizers

What’s in the OBBA?

The new law includes a provision, effective after 2025, allowing non-itemizers to take a charitable deduction of $1,000 for single filers and $2,000 for taxpayers who are married and filing jointly. As has been the case in the past, gifts to donor-advised funds are not eligible. Unlike a previous (but smaller) similar provision, though, this law is not set to sunset. 

What does this mean for charitable giving?

After the TCJA went into effect, households that itemize deductions dropped to under 10%. Parallel to this trend, the number of U.S. adults who give to charity in any given year has dropped over the last 20 years from nearly two-thirds to less than half, according to some studies. Against this backdrop, the OBBBA’s deduction for non-itemizers has the potential to re-motivate charitable giving among a significant number of households. 

What can you do?

For everyone, now is the time to take a serious look at your charitable giving plans to support the causes you care about over the years ahead, especially if you are early in your career and not yet itemizing deductions. If you’ve already established a fund or you’re working with the Community Foundation in another way, please reach out to learn how we can help you make the most of the new tax laws, and even get your children and grandchildren involved. If you’re a nonprofit, now is the time to attract and engage brand new donors. And if you’re an attorney, CPA, or financial advisor, make sure you talk about charitable giving with your clients who don’t itemize; a $1000 or $2000 deduction could be just the motivation they need to begin a journey of philanthropy. 

Insight#3: No sunsetting estate tax exemption

What’s in the OBBA?

For affluent taxpayers updating financial and estate plans, and for the attorneys, CPAs, and wealth managers advising them, the last couple of years have been a roller coaster because of the looming possibility that the TCJA’s increase to the estate tax exemption would sunset at the end of 2025. Finally, there is clarity: Under the OBBBA, the sunset will not happen. The new law makes permanent the increase in the unified credit and generation-skipping transfer tax exemption threshold. The 2025 exemption is $13.99 million for single filers and $27.98 million married filing jointly. In 2026, these numbers increase to $15 million and $30 million respectively.

What does this mean for charitable giving?

Purely estate tax-based incentives to give to charity continue to apply only to the ultra-wealthy, likely resulting in a continuation of the taxpayer behavior triggered by the TCJA. In other words, most people will give to charity during their lifetimes and in their estates for reasons other than a tax deduction.

What can you do?

There is no guarantee that the estate tax exemption will stay high forever. As families work with their tax and estate planning advisors, many are viewing the next two years as an important window to plan ahead. The upshot of the new law is that high net-worth taxpayers now have more time to thoughtfully consider estate planning strategies, including charitable giving. For nonprofit organizations, this means continuing to focus on long-term planned giving strategies is wise.   

By Jody Dilday, Philanthropic Advisor

Wouldn’t it be helpful to read your clients’ minds? Especially when it comes to understanding their values, goals, and charitable intent.

Good news: You don’t have to guess. Research provides helpful insights into what motivates charitable clients, and how you can meet them where they are.

Consider this: In 2024 alone, Americans gave an estimated $592.5 billion to U.S. charities, according to Giving USA. That’s a powerful indicator that philanthropy is alive and well. In fact, more than 85% of affluent households give to charity each year.

So what’s driving this generosity? Here are a few key mindsets your clients may already have:

“We want to make the world better, starting here at home.”
People are more likely to give to local causes. A study from the University of Chicago Booth School of Business found that donors are significantly more inclined to support local charities over national or international ones. At the Community Foundation, we see this every day as donors work with us to make a difference in the places they call home. We’re here to help your clients support local causes in thoughtful and effective ways.

“Giving makes us feel good.”
Charitable giving isn’t just good for the world, it’s good for your clients, too. Studies show that philanthropy has both emotional and physical benefits. That’s in stark contrast to the often stressful experience of estate planning, which can bring up concerns about mortality, family conflict, or financial uncertainty. By weaving charitable giving into the process, you help create a more positive, purpose-driven experience.

“We want to know our giving really matters.”
Your clients want more than a tax deduction, they want to make a difference. Today’s philanthropists are eager to address complex issues and support long-term solutions. Many are rethinking their role, looking beyond immediate gifts to long-term strategies that sustain change over time. That might include establishing an endowment, setting up a donor advised fund, or even engaging in advocacy.

At the Community Foundation, we stay closely connected with a broad network of nonprofits across the state. We know where the needs are, and how your clients can align their giving to achieve meaningful impact.

Let’s talk. We’re here to support you and your clients in making charitable giving more strategic, joyful, and rewarding.

By Lesley Roberts, Philanthropic Advisor

As an estate planning, tax, or wealth advisor, you play a key role in helping your clients make the most of their charitable giving, maximizing both impact and tax benefits. But according to a 2023 survey, just 19.2% of advisors bring up charitable giving regularly with clients, and 44.2% do so only occasionally.

That’s where the Community Foundation can help.

We’re here to serve as your charitable sounding board. When a client expresses interest in giving, or when you’re exploring strategies together, just loop us in. We’ll help you navigate the options, crunch the numbers, and tailor a plan that fits your client’s goals.

Of course, you still have to start the conversation. One easy way is by talking about the benefits of giving appreciated assets, like stock or real estate, to a fund at the Community Foundation. To illustrate, consider this hypothetical example:

Meet Jane.
She earns more than $500,000 a year and wants to donate $10,000 to the Community Foundation’s local Giving Tree Endowment. Jane holds Apple stock purchased more than 20 years ago, now worth far more than she paid for it. She also has plenty of cash on hand. Jane is weighing two options:

• Write a check for $10,000
• Transfer $10,000 worth of Apple stock

As her advisor, you already know the smarter tax move is to donate the stock, but here’s how you might explain it with real numbers:

• Jane’s income places her in the 37% federal marginal tax bracket and a 23.8% long-term capital gains tax rate (20% + 3.8% Net Investment Income Tax).
• She itemizes deductions and has a cost basis of $2,000 in the Apple shares she’s considering donating.

Option 1: Give Cash

• Charitable deduction: $10,000
• Federal tax savings: $3,700
• Net cost of gift: $6,300

Option 2: Give Stock

• Avoids $8,000 in capital gains
• Capital gains tax avoided: $1,904
• Federal tax savings: $3,700
• Net cost of gift: $4,396

The takeaway?
Either way, Jane gives $10,000 to charity. But writing a check costs her $6,300. Donating stock? Just $4,396. That’s nearly $2,000 in additional tax benefit, and a clear win for both Jane and the causes she cares about.

Donating appreciated assets is just one of many charitable strategies your clients can use. These conversations often lead to deeper planning around lifetime giving, legacy goals, engaging the next generation, and more.

Let us know how we can help. We’re always happy to share strategies and examples to help your clients give wisely, and with greater impact.

by Ashley Coldiron, Chief Development Officer

There’s been a lot of buzz around H.R. 1 (the “Big Beautiful Bill”)  which passed the U.S. House on May 22 by a narrow vote. As it heads to the Senate, changes are expected—so nothing is final yet. Still, it’s smart to be aware of provisions that could affect charitable giving.

Here’s what we’re watching—and how it might matter to you:

• Estate Tax Exemptions. The current individual exemption of 13.99M ($27.98M for couples) is set to sunset at the end of 2025. Under the proposed legislation, these higher exemptions would become permanent. Either way, charitable gifts can be an effective tool for managing estate taxes and leaving a legacy aligned with your values.
  
• Standard Deduction. The bill proposes extending the higher standard deduction levels through 2028, with a modest “above-the-line” eduction for charitable gifts: $150 for individuals or $300 for joint filers. While most people give for reasons beyond tax savings, we’re here to help you structure giving that works for your financial and philanthropic goals.
  
• Private Foundation Excise Taxes. Proposed changes would increase taxes on large private foundation investment income, but foundations under $50 million in assets would not be affected. Donor advised funds at the Community Foundation offer a flexible alternative—with less regulation and lower cost.

So what’s next? The Senate is expected to begin reviewing the bill in June, with potential action stretching into late summer. We’re watching closely and will keep you updated.

In the meantime, if you’re updating your estate plan or exploring new ways to give, reach out. We’d be honored to partner with you and your advisors to help you make a meaningful, lasting difference.