Charitable Giving and the New Tax Law-Slides

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The Council for Advancement and Support of Education (CASE) hosted a workshop on December 5, 2025, focusing on charitable giving and its changes under the new tax law, the One Big, Beautiful Bill Act (OBBBA). The session aimed to provide education professionals—particularly those in schools, colleges, and universities—with an overview of major tax provisions affecting charitable donations and strategies to adapt to these changes.<br /><br />Key tax-related points covered included:<br /><br />- The extension and permanence of several Tax Cuts and Jobs Act (TCJA) provisions like individual income tax rates, the doubling of the standard deduction, and estate tax exemptions.<br /><br />- A permanent extension of the 60% adjusted gross income (AGI) limit for cash gifts, and importantly, the introduction of a new permanent charitable deduction for non-itemizers (up to $1,000 for individuals, $2,000 for joint filers), effective in 2026. This change "democratizes" giving, allowing more Americans to benefit from charitable deductions regardless of itemization.<br /><br />- Introduction of a new 0.5% AGI floor on itemized charitable giving, which could reduce deductible gift amounts for high-income donors, alongside a 35% cap on total itemized deduction benefits, potentially increasing donors' effective cost of giving.<br /><br />- Corporate giving faces a new 1% floor on deductible contributions, which may reduce corporate donations substantially.<br /><br />- Enhanced endowment tax for private colleges and universities, raising rates above $750K per student from 1.4% to up to 8%, with thresholds and rules widened.<br /><br />- A federal tax credit of up to $1,700 for donations to scholarship-granting organizations for qualifying families, contingent on state opt-in.<br /><br />The workshop underscored an anticipated surge in charitable giving in 2025 before the law's full effect in 2026, offering opportunities to reverse donor declines. It explored practical strategies including promoting the non-itemizer deduction, strategic timing and bundling of major gifts, and leveraging year-end giving tactics such as donor-advised funds and IRA charitable rollovers.<br /><br />Participants engaged in breakout discussions to share best practices, donor queries, and institutional preparations. CASE offers continuing resources and advocacy networks to aid institutions navigating these tax law shifts.

Keywords

Charitable Giving

Tax Law Changes

One Big Beautiful Bill Act

Tax Cuts and Jobs Act

Standard Deduction

Adjusted Gross Income Limit

Non-itemizer Charitable Deduction

Corporate Giving Floor

Endowment Tax Increase

Scholarship Tax Credit