Charitable Contributions

​​The One Big Beautiful Bill Act (OBBBA) introduces structural changes that extend beyond tax savings. OBBBA modifies how financial records must be organized for 2025 and alters federal compliance and reporting requirements beginning in 2026.

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Accurate bookkeeping, updated categorization, and proactive documentation will be critical to reducing filing risk and maintaining clean audit trails under the new rules.

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This page outlines the changes that apply immediately, those that begin in 2026, and the steps that support compliant recordkeeping.

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​What Remains Unchanged?

​​Charitable contributions remain deductible when made to eligible public charities and supported by proper documentation. Donation receipts and concurrent records continue to be required.

What changed is who benefits from the deduction and how the benefit is calculated.

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Charitable Contribution Rules for Standard Deduction Filers Beginning in 2026

​Starting in tax year 2026, taxpayers who take the standard deduction may claim a new above the line charitable deduction.

Eligible deductions include:

• Up to $1,000 for Single or Head of Household filers.
• Up to $2,000 for Married Filing Jointly.

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Qualification requirements:
• Cash contributions only.
• Donations must be made directly to eligible public charities.
• Contributions to donor advised funds, private foundations, and similar vehicles do not qualify.

This provision reintroduces tax benefits for smaller charitable gifts. Documentation becomes essential again, even for modest donations.

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Charitable Contribution Rules for Itemized Filers Beginning in 2026

Taxpayers who itemize deductions will see more restrictive rules starting in 2026. A new charitable deduction floor applies. Only contributions that exceed 0.5% (percent) of adjusted gross income qualify for a deduction.
Implications include:

• Smaller annual donations may no longer produce a tax benefit.

• Bunching contributions across tax years may be more effective.

• Timing and structure of charitable gifts require more planning.

Without adjustments, some taxpayers may donate the same amount as prior years
while receiving a reduced tax benefit.

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Why Charitable Planning Matters Under OBBBA?

​Charitable giving is no longer a uniform deduction. The tax impact now depends on filing status, income thresholds, and contribution structure.
Proactive planning allows taxpayers to:

• Preserve the intended tax benefit of charitable giving

• Avoid reduced deductions at filing time.

• Align generosity with broader tax strategy.

Waiting until tax season limits available options.

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​Recommended Charitable Planning Actions
The following steps support effective charitable planning under OBBBA:

• Confirm whether itemizing remains beneficial under the new deduction floor.

• Track cash contributions separately from non-qualifying donations.

• Maintain clear receipts for all charitable gifts.

• Evaluate contribution timing across tax years.

• Coordinate charitable planning with income and year end strategies.

Early planning provides flexibility. Last minute decisions do not.

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Request a Charitable Contribution Planning Review
A charitable planning review evaluates how OBBBA impacts your giving strategy and identifies opportunities to preserve tax benefits under the new rules.
A review includes:

• Filing status and deduction strategy analysis.

• Evaluation of standard versus itemized deduction outcomes.

• Review of qualifying and non-qualifying charitable contributions.

• Timing and structuring guidance for future giving.

Submit the form below to begin a charitable contribution planning review.

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Frequently Asked Questions About Charitable Contributions Under OBBBA

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Are charitable contributions still deductible under OBBBA?

Yes. Charitable contributions remain deductible, but how the deduction applies depends on whether you itemize or take the standard deduction starting in 2026.

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Can I deduct charitable donations if I take the standard deduction?

Beginning in 2026, standard deduction filers may deduct up to $1,000 or $2,000 depending on filing status, but only for qualifying cash contributions.

 

​Do donations to donors advised funds qualify for the new standard deduction rule?

No. Contributions to donor advised funds, private foundations, and similar vehicles do not qualify for the line deduction.

 

What is the charitable deduction floor for itemized filers?

Starting in 2026, only charitable contributions exceeding 0.5% (percent) of adjusted gross income qualify for a deduction.

 

​Do small donations still require receipts?

Yes. Proper documentation remains required for all charitable deductions, including smaller cash contributions.

 

Should I change how I give to charity under OBBBA?

Possibly. Many taxpayers will benefit from reviewing timing, structure, and filing methods before making contributions.

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Plan Charitable Giving Under OBBBA
OBBBA introduces new charitable deduction thresholds that affect both standard and itemized filers beginning in 2026. A charitable contribution review helps identify how filing method, income level, and donation structure affect tax outcomes.

This review is designed for individuals, high income earners, and business owners who include charitable giving as part of their financial planning.

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Provide information about your filing status, income range, and charitable giving habits. This review identifies deduction eligibility, documentation requirements, and planning opportunities under OBBBA.

Early planning preserves flexibility and improves tax outcomes.