The One Big Beautiful Bill Act was signed into law by President Trump on July 4, 2025, after the House of Representatives approved the Senate’s changes to H.R. 1, which passed the House by a narrow margin in May.  

Key takeaways 

  • The OBBBA permanently increases the standard deduction and limits the deductibility of charitable gifts for high earners, which could continue to discourage itemized giving for many taxpayers. 
  • A new above-the-line charitable deduction for non-itemizers (up to $2,000 for joint filers) will take effect after 2025—offering new incentive for lower- and middle-income households to begin giving. 
  • The estate tax exemption will remain high permanently, creating more long-term certainty for high-net-worth families engaged in charitable and legacy planning. 
  • The Omaha Community Foundation continues to support advisors, fundholders, and nonprofits in adapting to new tax landscapes and aligning giving with personal values and community needs. 
  • “Philanthropy is a core value for many families, and charitable giving is often motivated by a desire to make a meaningful impact,” said Vanessa Denney, Vice President of Donor & Philanthropic Services. “That remains true even when the tax advantages shift.” 

The OBBBA, with nearly 900 pages of provisions, reshapes policy across major sectors of the U.S. economy. Included in the OBBBA are several provisions that impact philanthropy. Three major takeaways are of particular importance as the Omaha Community Foundation helps fundholders, nonprofits, attorneys, CPAs, and financial advisors navigate charitable planning opportunities over the months and years ahead.  

Notably, the OBBBA omits several provisions that appeared in previous versions of the legislation, such as a proposed increase to the net investment income tax on private foundations. 

Standard Deduction Stays High, Itemization Less Valuable 

The OBBBA makes permanent the higher standard deductions first introduced by the 2017 Tax Cuts and Jobs Act: $15,750 for single filers and $31,500 for married couples filing jointly in 2025. It also limits charitable deductions for itemizers—only gifts exceeding 0.5% of adjusted gross income will count, and top-bracket earners can now deduct gifts at 35% instead of 37%. 

These changes will likely continue the trend of fewer Americans itemizing deductions, dampening some tax-motivated giving. 

“People don’t give to nonprofits solely for the tax benefit,” said Vanessa Denney, Vice President of Donor & Philanthropic Services at the Omaha Community Foundation. “Philanthropy is a core value for many families, and charitable giving is often motivated by a desire to make a meaningful impact. That remains true even when the tax advantages shift.” 

New Deduction for Non-Itemizers Could Reignite Small-Scale Giving 

Beginning in 2026, non-itemizing taxpayers will be allowed to deduct up to $1,000 (single filers) or $2,000 (joint filers) in charitable gifts—though not to Donor Advised Funds. Unlike a previous version, this new provision is permanent. 

With fewer than 10% of households currently itemizing—and overall charitable participation on the decline—the new deduction for non-itemizers could help reengage a broader base of donors, particularly younger adults who are early in their careers and may not yet qualify for itemization. 

“A $1,000 or $2,000 deduction might be just the encouragement they need to start their philanthropic journey,” Denney said. “We’re here to provide guidance and expertise to help them take that first step.” 

Estate Tax Exemption Made Permanent 

The law eliminates the uncertainty surrounding the scheduled sunset of the estate tax exemption. The exemption will remain high—$13.99 million for individuals and $27.98 million for couples in 2025, rising to $15 million and $30 million respectively in 2026. This change solidifies the planning window for high-net-worth families. 

While estate tax incentives apply only to the ultra-wealthy, this clarity offers more time for thoughtful planning, including charitable bequests and legacy gifts. 

Partnering Through Change 

The OBBBA underscores a lasting truth: tax laws may change, but the desire to give remains strong. Whether you’re advising clients, updating your estate plan, or developing a giving strategy, the Omaha Community Foundation is here to help. Contact us at giving@omahafoundation.org to explore how we can support your charitable goals.