A Smarter Way to Start the Year
January is when nonprofits sharpen pencils, refill coffee mugs, and swear this will be the year everything is more “strategic.” Good news: it actually can be. Beginning in 2026, new charitable giving rules under the One Big Beautiful Bill Act (OBBBA) kick in, and they have real implications for donor behavior, and your revenue. Understanding what’s changing now gives you a head start on smarter planning, clearer messaging, and stronger fundraising results.
Big-picture takeaway?
More donors once again have a reason to give, and that’s not nothing.
What Changed—and Why It Matters
Let’s break this down without inducing a tax-law headache. The OBBBA makes several notable updates to charitable giving rules:
- A permanent universal charitable deduction. Translation: non-itemizers can deduct charitable gifts again—both individuals and couples. Cue the confetti.
- New thresholds for itemized donors. Gifts must exceed a certain percentage of income, and there’s now a cap on the value of deductions. Strategy matters more.
- Corporate giving changes. Corporations must give above a percentage of income for gifts to qualify.
- Retirement and legacy giving remain attractive. Qualified Charitable Distributions (QCDs) are still on the table, making IRA-based giving a powerful option.
In short: the rules changed, but generosity is still strongly encouraged—just with a bit more math.
A Major Opportunity to Re-Engage Small Donors
The universal deduction is a quiet hero here. Most taxpayers don’t itemize, and for years, that meant no tax incentive for charitable giving. Not anymore. Everyday donors are back in the game.
This is your chance to reconnect with first-time donors, lapsed supporters, and consistent small-dollar givers who may not realize they’re once again eligible for a deduction. The key? Clear, donor-facing language. You don’t need a CPA in your email appeals—just a simple reminder that gifts may be tax-deductible even if they don’t itemize.
How Mid-Level and Major Donors May Adjust
Itemizing donors are likely to get more strategic. Expect increased focus on timing gifts, meeting income thresholds, and bundling donations into certain years. This is where education becomes a trust-builder. You’re not giving tax advice, but you are positioning your organization as informed, helpful, and worth planning around.
What to Expect from Corporate Giving
Corporate giving may trend toward fewer, larger contributions. That puts pressure on nonprofits to offer clearer impact reporting, smarter sponsorships, and partnerships aligned with business goals. Transactional giving is out; strategic alignment is in.
What Nonprofits Should Be Doing Now
Update donor communications. Arm development teams with simple talking points. Educate boards and leadership. Start modeling how these changes could affect your 2026 revenue mix. Future-you will be grateful.
Clarity Is a Fundraising Advantage
The intent of the new law is simple: encourage generosity at every level. Nonprofits that lead with clarity, education, and confidence will stand out. Informed donors are more engaged, more loyal—and more likely to give. Turns out, good communication is still the best fundraising strategy of all.