The One Big Beautiful Bill Act (OBBBA) became law in July 2025, and it’s bringing some of the biggest changes to charitable tax deductions we’ve seen in years. Whether you give monthly, make one-time gifts, use a Donor Advised Fund (DAF), or lead a business that supports nonprofits, these new rules could affect how and when you give.
I wanted to put this together because, honestly, when I first started reading about the changes, I couldn’t find many simple, everyday explanations. We know our donors like clarity, so here’s what I’ve learned so far in plain language.
1. Gifts made in 2025 or earlier are not affected
The new rules only apply to donations made on or after January 1, 2026. Any gift made in 2025 or before will follow the current tax rules.
If you’ve been thinking about a larger gift or adding to your DAF, this year is the last chance to do it under the more flexible rules. The Wall Street Journal has already reported that many donors are acting before December 31 to lock in these benefits.
2. Standard deduction filers will get a new benefit
Starting in 2026, if you take the standard deduction, you can deduct up to $1,000 in cash gifts to qualified charities like Brave Like Me ($2,000 for married couples filing jointly).
Example: If you give $600, you can deduct all of it. If you give $2,400, you can deduct $1,000 (or $2,000 if you’re married). The Tax Policy Center notes that the benefit may be modest, but it’s still a welcome change for many givers.
Important: This applies only to direct gifts. DAF contributions do not qualify for this new benefit.
3. Itemizers will see new limits
For donors who itemize, starting in 2026 only the portion of your charitable giving above 0.5% of your income will be deductible. On top of that, the deduction will be capped at 35% of the gift’s value, even if you’re in a higher tax bracket.
Example: If you earn $300,000 and donate $6,000, the first $1,500 won’t be deductible. The remaining $4,500 will be deductible, but only up to 35%. Forbes explains that this is one of the biggest shifts and may require new giving strategies.
4. Corporate donors will need to meet a new threshold
For businesses, starting in 2026 charitable contributions will only be deductible if the company gives at least 1% of its taxable income.
The deduction is still capped at 10% of taxable income, with unused deductions eligible to carry forward for up to five years. If your company is planning a large charitable gift, this is something to review ahead of time.
5. DAFs and planned giving are shifting
DAFs remain a great way to combine multiple years of giving into one larger gift, but they will not count toward the $1,000/$2,000 standard deduction benefit.
Planned giving may also shift now that higher estate tax exemptions are permanent. Many donors may now focus more on impact and legacy than on tax savings, a trend Forbes columnist Martin Shenkman has been talking about for months.
What should you do now?
Every donor’s situation is different, so the best next step is to talk with your accountant or a qualified tax attorney about what these changes mean for you. This article is not legal or tax advice. I just wanted to make sure our Brave Like Me family had a simple, clear explanation because I could not find enough resources that explained it in plain terms.
The bottom line is this: the rules are changing, but our mission is not. We will keep growing, keep expanding, and keep delivering impact through Brayden’s Books, Brave Friends Adventures, and the Brave Pets Mobile Family Pet Reunion Center.
