Please Note: This information is for general educational purposes only. We encourage you to consult with your tax or financial advisor to determine how the new law may affect your individual circumstances.
A new federal law could change the way many Americans approach charitable giving.
Passed on July 4, 2025, the One Big Beautiful Bill (OBBB) introduces significant tax changes. These changes could influence how donors choose to support charitable organizations like Mission of Deeds.
A New Deduction for Standard Filers
For the first time in years, individuals who take the standard deduction will be able to claim a limited deduction for charitable giving. Starting in 2026, taxpayers could deduct up to:
- $1,000 if filing as a single individual
- $2,000 if married filing jointly
However, these deductions only apply to cash donations made to public charities. Contributions to donor-advised funds or private foundations do not qualify under this provision.
Changes for Itemizers and Corporations
Those who itemize their deductions will also see a shift in 2026:
- Only the portion of charitable contributions above 0.5% of a taxpayer’s adjusted gross income (AGI) is deductible.
- For example, someone with an AGI of $200,000 must donate at least $1,000 before they can begin deducting charitable contributions.
- Additionally, the deduction for top-bracket taxpayers has been reduced from 37% to 35% per dollar donated.
- Corporations are only entitled to deduct charitable contributions that exceed 1% of their taxable income.
At Mission of Deeds, we are deeply grateful for your generosity. Your support helps provide essential beds, furniture, and household items to individuals and families transitioning out of homelessness and hardship.
