One Big Beautiful Bill Act Will Reduce Annual Charitable Giving by $5.69 Billion

The One Big Beautiful Bill Act (Public Law 119-21) (OBBBA) signed into law by President Trump on July 4, 2025 enacted tax law changes estimated to reduce annual charitable giving by approximately $5.69 billion according to a new report released by the Indiana University Lilly Family School of Philanthropy on March 17, 2026.

While some changes enacted by the OBBBA are estimated to increase the number of households engaged in charitable giving (i.e., a deduction for non-itemizing taxpayers) the overall rate of giving is estimated to decrease. This decrease is mainly attributable to three changes contained within the OBBA effective in 2026: (i) a 1 percent floor on the deductibility of corporations’ charitable contribution; (ii) a .5 percent floor on itemized deductions for individual taxpayers; and (iii) a 35 percent cap on itemized deductions, including charitable contributions, for individual taxpayers in the top 37 percent income tax bracket.

These changes will compel charitable nonprofit organizations to both educate their supporters as well as hone strategies for charitable giving by various donors.

See also: Tax Notes, The Conversation