What the ‘One Big Beautiful Bill’ Means for Your Donors

Understanding how new tax laws reshape giving—and your conversations with donors.

When it comes to charitable giving, most donors aren’t motivated solely by tax incentives. They give because they believe in your mission. They feel loyalty, connection and trust. 

A smiling female having a conversation with her female advisor, during the home visit.

New Tax Law, New Donor Conversations

But while tax  benefits are rarely the primary reason they give, they do influence how and when they choose to make those gifts.

That is why understanding the implications of the One Big Beautiful Bill (signed into law in July 2025) is important for anyone involved in fundraising. While donors will continue to give out of generosity and affinity, the OBBB reshapes the tax environment around those gifts, and knowing the new rules helps you guide conversations with clarity and confidence.

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The New Deduction Floor and Its Impact on Giving Behavior

Beginning in 2026, the OBBB introduces a 0.5% adjusted gross income (AGI) floor for charitable deductions. In simple terms, donors who itemize will only be able to deduct the portion of their charitable giving that exceeds that threshold.

For most donors, this does not change their philanthropic intent. It could, however, impact timing. While some donors may choose to accelerate giving in 2025 to take advantage of the current rules, others may consider bundling multiple years of gifts or using non-cash assets to maximize the benefit.

Gift officers can use this as a moment to reconnect: “How can we help you maximize the impact of your generosity while minimizing the cost to you?”

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Stock Gifts, Donor-Advised Funds, and the Smart Use of Assets

Even under new rules, non-cash giving remains one of the most efficient ways to support charity. Gifts of appreciated stock, real estate, or assets held in donor-advised funds (DAFs) continue to offer donors both impact and flexibility.

Because of the new deduction floor, gifts that avoid capital gains (like appreciated stock) may become even more appealing. Likewise, donors who use DAFs may want to consider when and how they contribute: moving assets into a DAF now could preserve higher deduction limits under current law.

For fundraisers, this is an opportunity to start conversations about giving vehicles, not just gift amounts. Planned Giving thrives when donors see how different tools work together toward their legacy goals.

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IRA Gifts and QCDs: Acting While Rules Favor Them

For donors age 70½ or older, Qualified Charitable Distributions (QCDs) remain a highly tax-efficient way to give directly from an IRA. Since QCDs count toward required minimum distributions (RMDs) but are not included in taxable income, they’re an excellent option for donors who no longer itemize.

The OBBB doesn’t directly change QCD rules, but its new deduction structure makes QCDs and other non-itemizer strategies even more valuable. For gift officers, now is the time to help donors see how their IRAs fit into their overall giving.

Implications for Donor Motivation and Messaging

While donors give for mission, not taxes, the changing law means that the tax conversation can’t be ignored. The message shifts somewhat: “How can you give in a way that is most cost-effective for you and most impactful for the organization?”

  • In other words, Planned Giving conversations must marry purpose (mission + loyalty) and strategy (assets + timing).
  • Your role becomes a translator of this tax change. Helping donors understand the “how” as well as the “why.”
A female gift officer smiles while explaining something to an older couple sitting at a table. The couple looks engaged and happy.

Simplify OBBB for Donors

Contact us today to talk through how we can help you communicate the implications of the OBBB to your donors and prospects.

Schedule a Demo