Planning for the OBBB’s New Charitable Giving Limits in 2026
Are You Giving the Same—But Getting Less Tax Benefit?
New tax rules are coming. The question is whether your strategy is keeping up.
Beginning in 2026, the One Big Beautiful Bill (OBBB) changes how charitable donations are deducted—especially for high-income families, retirees, and business owners.
Without planning, you may continue giving the same way… but receive less tax benefit.
What’s Changing (And Why It Matters to You)
The new rules introduce subtle—but important—limitations:
- A 0.5% AGI threshold before deductions begin
- Reduced deduction value for high-income taxpayers
- New (but limited) deductions for non-itemizers
- Additional restrictions for business owners
Translation:
Many families will need to rethink how and when they give to maintain efficiency.
Who This Impacts Most
- You may be affected if you:
✔ Have annual income of $250,000+
✔ Regularly donate to charities or foundations
✔ Are planning a large gift or legacy contribution
✔ Own a business or have variable income
✔ Are approaching or in retirement
The Hidden Risk
Most people won’t notice these changes right away.
But over time, inefficient giving can lead to:
- Missed tax-saving opportunities
- Reduced long-term impact of your gifts
- Disconnect between your financial plan and your values
This isn’t about giving less. It’s about giving more intentionally.
A Smarter Approach to Charitable Giving
With the right strategy, you can still maximize both impact and efficiency.
Some planning opportunities may include:
- Bunching contributions to exceed deduction thresholds
- Donating appreciated investments instead of cash
- Using Qualified Charitable Distributions (QCDs) in retirement
- Timing gifts around high-income years
The key is coordination—between your tax plan, investment strategy, and giving goals.
Disclosure: This material is for informational purposes only and should not be considered tax advice. Please consult your CPA for guidance specific to your situation.