What the One Big Beautiful Bill Act Means for Charitable Giving

Tax Laws Evolve, Mission Endures 

(Why Timing Matters—and Why Mission Still Leads)

Over the past few months, nonprofit leaders, board members, and major donors have been asking the same question:

What do recent tax law changes actually mean for charitable giving?

The short answer: generosity isn’t going anywhere. But timing and planning matter more than before.

Below is an overview from Kindest, meant to provide context, not tax advice — and to help nonprofits understand what’s changing, what’s not, and how to communicate thoughtfully with donors as we approach year-end and plan for 2026. 

The Big Picture (In Plain English)

Beginning in 2026, tax incentives for charitable giving will shift.

Some higher-income donors may see a modest reduction in the tax value of deductions, which may influence timing or structure (not intent).

More everyday donors may again be eligible for a charitable deduction, reinforcing the importance of broad participation.

For nonprofits, the takeaway is straightforward: mission still leads. This is a moment for clear communication, strong stewardship, and early engagement — helping donors plan thoughtfully while keeping impact at the center.

What This Means for Major Donors

Beginning in 2026, high-income donors in the top federal tax brackets may see a modest reduction in the tax value of charitable deductions, depending on individual circumstances.

What’s important to understand:

 

The impact of giving does not change. Mission, outcomes, and alignment remain the primary drivers of major philanthropy. Tax considerations may influence timing or structure — not intent.

Because these changes take effect after December 31, 2025, many donors are naturally thinking about structuring multi-year commitments and timing gifts before year-end.

For nonprofits, this is less about incentives and more about stewardship. Major donors have advisors to guide tax strategy; your role is to stay focused on partnership and mission. This context can be helpful as donors consider timing or restructuring multi-year commitments ahead of year-end.

What This Means for Base & Mid-Level Donors

Also beginning in 2026, the law expands access to charitable deductions for donors who do not itemize, meaning that everyday donors may be eligible to receive a new tax benefit for giving.

At a high level, this reinforces what strong fundraisers already know: smaller and mid-level gifts remain essential to nonprofit sustainability.

• Participation matters
• Consistent giving strengthens impact
• Smaller and mid-level gifts remain essential to nonprofit sustainability

For many organizations, this creates an opportunity to re-engage donors and reaffirm the importance of broad community support — particularly as new incentives take effect next year.

What Hasn’t Changed

Some things remain true regardless of tax policy:

• People give because they believe in the mission
• Trust and transparency matter
• Long-term impact is built through relationships, not transactions
• Tax benefits are a tool and impact is the engine.

 

Nonprofits that lead with clarity, stewardship, and purpose will continue to make a difference, regardless of policy shifts.

A Practical Note for Nonprofits

Many organizations are choosing to include a brief acknowledgment like this in year-end appeals or stewardship communications:

 

As tax laws evolve, we remain focused on what matters most: delivering meaningful impact through our mission. Some donors may wish to consider timing or planning their giving thoughtfully; we encourage you to consult your tax advisor for guidance specific to your situation. Your generosity continues to make this work possible.

This approach informs without advising and reinforces mission-first stewardship.

A Note on Advice & Planning

Neither Kindest nor the nonprofits we support provide tax, legal, or financial advice.

Donors with questions about how these changes apply to their personal circumstances should consult their own tax advisor or financial planner.

For those seeking additional, independent context:

• IRS guidance on charitable contributions
  https://www.irs.gov/charities-non-profits/charitable-organizations/charitable-contribution-deductions
• Tax Policy Center
  https://www.taxpolicycenter.org
• Brookings Institution
  https://www.brookings.edu

 

By communicating clearly to donors this giving season — nonprofits help donors plan in ways that align personal goals lasting community impact.