Changes to charitable deduction rules

At the Community Foundation for Greater Atlanta, we’re committed to staying on top of changes in the tax laws that could impact the charitable planning advice you provide to your clients. Our role is to be knowledgeable so that we can point donors in the right direction and let them know when it’s crucial to consult their tax advisors. Our role is also to let you know about key legal developments and other trends related to charitable planning so that you can more easily find the information you need to properly advise your clients.

A priority for our team is to sift through the layers and layers of information available on any given topic, including, at the moment, the changes to charitable deduction rules in the recently-enacted One Big Beautiful Bill Act (OBBBA). We want to make it as clear as possible for you to get up to speed. And, as always, we want to be your first call when you’re working on a client’s charitable plans. In almost every case, the Foundation’s tools can help achieve your client’s philanthropic goals while maximizing tax benefits.

In that spirit, we’re sharing a handful of articles that we think you’ll find especially useful as you navigate the months ahead under the OBBBA’s rules.

Concise summaries of changes to charitable deduction rules

How the OBBBA makes it easier for all Americans to claim the tax break for charitable donations

This MarketWatch article is especially valuable for attorneys, CPAs, and financial advisors who advise charitable clients but may lack time to parse the law’s technical intricacies. The article delivers clear, actionable insights by spotlighting the OBBBA’s forthcoming “above-the-line” charitable deduction—$1,000 for individuals and $2,000 for married couples—which democratizes tax benefits for many donors starting in 2026. The article crisply outlines trade-offs, noting that while middle-income donors gain access, itemizers and corporations face new hurdles like AGI-based floors and deduction caps, offering a balanced overview of where strategies may need adjustment. We appreciate the comments by Patrick Rooney, professor of economics and philanthropy emeritus at Indiana University’s Lilly Family School of Philanthropy, who is a well-respected, longstanding leader in the philanthropic sector.

The OBBBA gives millions of taxpayers a new charitable tax break, but whether it will help nonprofits is unclear

If you don’t subscribe to the Wall Street Journal and can’t access the article above, or if you’d like to gather more perspective, you might like this article that appeared in The Conversation, which also succinctly outlines the OBBBA’s changes to charitable deductions. The article takes a slightly broader, more analytical approach than the MarketWatch article, in that it integrates expert commentary, such as perspectives from economist Daniel Hungerman, to question whether the new tax incentive will translate into increased giving—or rather shift giving patterns—introducing nuance around the uncertain impact on charitable behavior. This adds a valuable layer of context if you’re wondering not only how the new law works, but also whether the new deduction for non-itemizers (starting in 2026) actually moves the needle for nonprofits in real-world giving trends.

“Winter is coming”

We appreciate commentary in industry publications that addresses not only what is in the law, but also why it is important to pay attention and stay vigilant. For example, this article may be a time-saving resource for you and other advisors because it sharply underscores the urgency of leveraging the enhanced estate and gift tax exemptions before potential future rollbacks, all conveyed through its vivid “tax summer” versus “tax winter” framing. This piece, on the other hand, comes at the issue from a different angle, delivering a clear, consolidated summary of the key changes introduced by the OBBBA, including the new above-the-line deduction for non-itemizers and the impending 0.5% AGI floor for itemizers. The article balances the narrative by highlighting not only the benefits—such as the meaningful win for non-itemizers—but also warns about the complexity of implementing these changes. In short, an underlying theme in each of these articles is that new laws create lots of planning opportunities, which could be great news for your practice.

2025 is a crucial year for your charitable clients

If you don’t have time to read any of these articles, just know this: 2025 is a crucial year to evaluate your clients’ charitable giving plans, especially for your charitable clients who itemize deductions. Be sure to help your clients evaluate the benefit of front-loading, or “bunching,” charitable contributions this year, such as through a donor-advised fund at the Foundation.

Thank you for the opportunity to work alongside you in supporting your clients. We are grateful for your partnership.