
New Charitable Giving Rules Under OBBBA: Key Changes
Explore the new charitable giving rules under OBBBA and how they affect your estate planning strategy.
Curious about how recent tax changes might affect your charitable giving? The One Big Beautiful Bill Act (OBBBA), passed recently, has introduced significant modifications to estate planning and charitable contributions that could reshape how you approach your philanthropy.
Starting in 2026, if you itemize your deductions, charitable contributions will now be limited by a 0.5% floor based on your Adjusted Gross Income (AGI). For instance, if you and your spouse have an AGI of $200,000 and decide to donate $10,000 to a qualified charity, your deductible amount would drop to $9,000 after applying the new floor. This change is crucial for donors looking to maximize their tax benefits.
Moreover, for those who don’t itemize, there’s good news! Starting in 2026, unmarried taxpayers can claim up to $1,000 and married taxpayers up to $2,000 as a charitable deduction, even if they take the standard deduction. This partial deduction is a significant incentive for many who wish to contribute without the burden of itemizing.
Given these changes, it’s smart to consider front-loading your charitable gifts before these limitations take effect. Tools like Donor Advised Funds (DAFs) can be particularly effective. For instance, transferring appreciated securities to a DAF allows you to avoid capital gains taxes while still receiving a deduction based on the current market value. This strategy is especially advantageous when markets are high and you have unrealized gains in your portfolio.
If you’re 70½ or older, it’s worth discussing the benefits of Qualified Charitable Distributions (QCDs) with your estate planning attorney. By donating directly from your IRA, you can satisfy your Required Minimum Distribution while reducing your taxable income—potentially lowering your Medicare premiums as well. In 2025, you can make a QCD of up to $108,000, and even roll over up to $54,000 into a Charitable Gift Annuity.
As these new rules roll out, staying informed and proactive will be key to optimizing your charitable giving strategy. Whether you’re a seasoned donor or just starting your philanthropic journey, understanding these changes can help you make more impactful contributions while reaping the tax benefits. Don’t wait—consider revisiting your estate plan now to align it with these new opportunities!



