How the One Big Beautiful Bill Act (OBBBA) Changes Charitable Giving

Effective Jan. 1, 2026, the law referred to as the One Big Beautiful Bill Act (OBBBA) introduces significant changes to charitable giving tax rules. If you’re someone who gives generously to causes you care about, it’s important to understand how these updates may affect your strategy.

1. New minimums for tax deductions

You can only deduct charitable gifts exceeding 0.5% of your income. For example, if your income is $300,000, you must give more than $1,500 to start claiming a deduction.

2. Limits for high-income donors

If you’re in the highest tax bracket at 37%, in addition to the 0.5% limit previously mentioned, your deduction is capped at 35%, a slight reduction of the tax benefit of large gifts. For example, a donor in this tax bracket with an income of $800,000 and a $50,000 charitable gift can only deduct $46,000, resulting in a $16,100 tax benefit under the new rules.

3. New deduction for standard filers

Even if you don’t itemize your taxes, you can still deduct a charitable gift up to:

• $1,000 if you file individually
• $2,000 if you file jointly

This applies only to cash donations to public charities. It excludes donor-advised funds and non-cash donations.

4. Estate and gift tax exemption increase

You can now pass on up to $15 million tax-free. This means fewer estates will owe federal estate taxes.

With these changes in effect, it’s a great time to review your charitable strategy. Your generosity matters, and with thoughtful planning, it can go even further.

• Use a charitable bunching (bundling) strategy (combining multiple years of giving into one) to maximize your deduction.
• Focus on income tax planning, since most estates won't be taxed under the new exemption.
  

Connect with Thrivent Charitable to:

• Review your giving strategy for 2026 and beyond.
• Explore personalized options that fit your financial goals.
• Make sure your gifts have the greatest possible impact.

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Donors must itemize deductions to receive a charitable income tax deduction. Charitable giving can result in tax, legal and financial consequences. Thrivent Charitable™ does not provide legal, accounting or tax advice. Consult your attorney or tax professional.

To ensure compliance with IRS requirements, be aware that any U.S. federal tax advice that may be contained in this article is not intended to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing and recommending another party to any transaction or matter addressed herein.