Newly Signed Tax Laws: What It Means for Charitable Giving

The new federal legislation that was signed on July 4, 2025 may reshape and have ripple effects across the landscape of charitable giving. The new tax law extends provisions of the Tax Cuts and Jobs Act, which were set to sunset at the end of 2025, and introduces several changes that may have a lasting impact on philanthropy.  

This session breaks down the new tax policy’s most critical components, highlighting how changes in deduction thresholds, giving incentives and compliance requirements may affect nonprofit strategies and donor engagement. Key provisions that will remain the same include income tax brackets, higher standard deduction, limit for cash gifts and higher estate tax exemption.

Additionally, new items were introduced, including:

• Tax break for non-itemizers – Allows for $1,000 for single filers and $2,000 for married couples filing jointly.
• Giving threshold for itemizers – At least 0.05% of adjusted gross income to be eligible to receive a tax benefit.
• Limitation on charitable deduction for the top tax bracket – Capped at 35 cents for each dollar of itemized deductions for the 37% income bracket.
• Corporations required to give more – At least 1% of taxable income to qualified charities to be eligible for deductions.

For more details, please visit New Tax Law: What’s Staying, What’s Changing and What It Means for You by Lynn Gaumer. Additionally, download Lynn’s customizable letter that nonprofit organizations can utilize for donor communications.