New tax laws are on the horizon—and they could significantly influence the way you give. The recently passed One Big, Beautiful Bill Act (often shortened to the OBBBA) introduces several changes that affect charitable givers today and in the years to come. 

To help unpack these shifts, we sat down with Bruce McKee, attorney and Senior Vice President of Complex Gifts at the National Christian Foundation (NCF).

What the OBBBA Actually Does

Despite its cheerful name, the OBBBA carries serious implications for donors. Bruce explains that the bill makes permanent many provisions that were originally scheduled to expire at the end of 2025 under the 2017 Tax Cuts and Jobs Act. Key extensions include:

• Higher standard deductions
• Higher estate tax exclusions
• New deduction floors for charitable gifts
• A new limit on itemized deductions
• Extended business deductions
• Updated rules for university endowment taxes

These changes will affect different givers differently, but nearly everyone will feel the impact of the new standard deduction.

The Standard Deduction Gets Bigger—Again

This update alone affects roughly 90% of taxpayers.

The OBBBA permanently extends the increased standard deduction and even boosts it for the 2025 tax year:

• Individuals: $15,750
• Married couples filing jointly: $31,500

Because the standard deduction is now higher, fewer people will itemize. And when giving is lumped under the standard deduction, charitable gifts are no longer deductible.

But there’s a powerful workaround.

If you want to maximize your tax benefits while maintaining your giving rhythms, “bunching” can help. Bunching means:

1. Grouping several years’ worth of charitable gifts into a single tax year
2. Itemizing in that year, instead of taking the standard deduction
3. Using a donor-advised fund (DAF)—such as an NCF Giving Fund—to distribute gifts gradually over future years

A giving fund works like a charitable checking account—a powerful tool for strategic, tax-efficient generosity. Bunching is especially impactful when paired with gifts of appreciated assets.

New Charitable Deduction Floors Coming in 2026

Beginning in 2026, charitable deductions will include a “floor”—a small portion of giving that won’t be deductible at all.

For Individuals

Only the amount of charitable giving above 0.5% of your Adjusted Gross Income (AGI) will be deductible. Here’s an example:

AGI = $200,000
0.5% floor = $1,000

Whether you give $20,000 or $40,000, the first $1,000 is not deductible.

For Corporations

A similar rule applies, but the floor is 1% of taxable income.

Why This Matters

This floor means that givers with large AGIs—especially in high-income years—should consider giving earlier, before 2026 arrives. Strategic timing will matter more than ever.

Even high-capacity donors who itemize may benefit from bunching in alternating years.

New Limits on Itemized Deductions

The OBBBA also introduces a “haircut” affecting all itemized deductions—not just charitable ones.

Because the highest tax bracket (37%) is now permanent, itemized deductions typically reduce income taxed at that rate. But beginning in 2026:

• Deductions in the highest bracket will be valued at 35 cents per dollar, not 37.

It’s a relatively small shift, but it slightly increases tax liability and a