Charitable Giving and the New Tax Law-Recording

Video Transcription

Video Summary

In a detailed webinar, Brian Flavin, CASE Vice President of Strategic Partnerships, provided an in-depth overview of the charitable giving provisions in the "One Big Beautiful Bill Act" passed in 2025. Flavin highlighted the bill's key focus: making permanent the individual tax cuts from the 2017 Tax Cuts and Jobs Act (TCJA), including the 37% top tax rate and the doubling of the standard deduction, which previously led to a sharp decline in itemizers and thus impacted charitable deductions. The act introduces a permanent above-the-line charitable deduction for non-itemizers, allowing individuals to deduct up to $1,000 (or $2,000 for joint filers) in cash gifts starting in 2026, expanding tax benefits to the 90% of Americans who take the standard deduction. However, new provisions also introduce a 0.5% adjusted gross income (AGI) floor on itemizers and a cap limiting the tax benefit for high-income donors to a 35% deduction rate, slightly reducing their incentive to give. Corporations face a similar 1% AGI floor, potentially reducing corporate giving. The bill also increases the private college university endowment tax, affecting schools with large endowments per student. For private K-12 schools, a new federal tax credit up to $1,700 for donations to scholarship-granting organizations is included, with states required to opt in. Flavin emphasized the likely surge in accelerated giving at the end of 2025 as donors capitalize on current benefits before new limitations take effect in 2026. The session concluded with breakout discussions addressing donor engagement strategies, communication resources, and the need for accessible, clear messaging tools without providing tax advice. CASE plans to continue offering resources and updates to help development professionals navigate these changes effectively.

Keywords

One Big Beautiful Bill Act

2025 legislation

charitable giving provisions

Brian Flavin

CASE Vice President

2017 Tax Cuts and Jobs Act

individual tax cuts

standard deduction

above-the-line charitable deduction

non-itemizers

adjusted gross income floor

high-income donor cap

private college endowment tax

federal tax credit for K-12 donations