Tax changes taking effect in 2026 may boost the number of donors but lead to the US missing out on an estimated $5.7B a year in charitable giving

Tax provisions in President Donald Trump's One Big Beautiful Bill Act, signed July 4, 2025, will increase the number of U.S. charitable donors but reduce overall giving by an estimated $5.7 billion annually starting January 1, 2026. A new universal charitable deduction allowing individuals to deduct up to $1,000 and married couples $2,000 in charitable gifts is projected to bring 8.7 million additional donors into giving, raising the share of American households donating to charity to 52% from the current 46%. However, two offsetting changes—a new 0.5% income floor on itemized deductions and a reduction in the deduction cap from 37% to 35%—will depress giving by high-income donors, with researchers projecting a $6.1 billion decrease from that cap alone. A new corporate giving requirement mandating donations of at least 1% of pretax profits to qualify for any deduction could also suppress corporate charitable contributions, which totaled $44 billion in 2024.