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The New Tax Law: What It Means for Your Giving Plans

As of July 4th, we have a new tax law officially named the One Big Beautiful Bill Act (OBBBA). While the law primarily addresses broad tax policy, a few key provisions may influence charitable giving—particularly when it comes to planned and estate gifts. The good news? Most donors will see little change, and the tools to leave a lasting legacy remain fully intact.

What’s Changing (and What Isn’t)

Starting in 2026, a few rules take effect:

  • The SALT (State and Local Tax) deduction cap has increased to $40,000 for donors earning $500,000 or less (with a phased down cap at $500,000-$600,000), and both the cap and income threshold will increase by 1% annually until 2030, when it will revert back to $10,000.
  • High-income donors (those in the top tax bracket) will see a slight reduction in the value of their charitable deductions: $0.35 in tax benefit per dollar donated instead of $0.37. This change impacts less than 1% of taxpayers and is unlikely to affect most giving decisions.
  • A new “floor” for charitable deductions means only gifts above 0.5% of your income will be deductible. For example, if you earn $200,000, the first $1,000 of giving won’t count as a deduction. This change is minor for most households.
  • The 60% of AGI limit for cash gifts is now permanent—allowing donors to deduct more of their charitable giving in high-contribution years.

For Non-Itemizers: A Modest New Deduction

Most Americans don’t itemize deductions. Starting in 2026, the OBBBA allows non-itemizers to deduct up to $1,000 in charitable contributions—or $2,000 for joint filers. This does not apply to gifts to donor-advised funds, but it does apply to gifts made directly to charitable organizations.

While this deduction is small, it recognizes and rewards the generosity of everyday givers. Combined with the permanently increased standard deduction—about $31,500 for couples and $15,750 for individuals in 2026—it gives more donors a small incentive to give generously, even if they don’t itemize.

Legacy Giving Remains a Smart Strategy

The OBBBA also locks in a higher estate and gift tax exemption—estimated at $15 million per person ($30 million for couples). That means fewer estates will owe federal estate taxes. Still, charitable estate planning offers powerful benefits. For example, naming a charity as a beneficiary of your retirement account remains one of the most tax-wise ways to give.

Your Legacy Still Matters

The tax law may change—but your impact doesn’t. Donors give because they believe in something greater than themselves. If you're considering a planned gift or want help navigating the new rules, we're here to support you. Let’s create a legacy that reflects your values—and changes lives.
 

Environmental and socioeconomic benefits

Women who have reproductive autonomy generally choose to have smaller families. This slows population growth and creates opportunities for social, economic, and environmental improvements. Slower population growth reduces pressures on natural resources, habitats, and food systems. Within the context of climate change, slowing population growth is key to achieving greenhouse gas emissions targets, and the health, education, and economic benefits afforded through family planning help reduce climate vulnerability and increase resilience for communities around the world.

Low Section Of Women Taking Water From Tubewell In Village Area Of Haryana, India

Health benefits

When women and couples have access to the resources necessary to freely and intentionally choose the number, timing, and spacing of their births, a wide variety of health benefits ensue also, including reductions in maternal mortality and morbidity, infant and child mortality, and unintended pregnancies and unsafe abortions.

People walking down main road in Jinka town, Naciones, Ethiopia, Africa

The powerful, neglected solution

Read more about how empowering women and girls to take charge of their bodies and lives is key to achieving the Sustainable Development Goals in this blog post.

This one action could save the world—so why does no one talk about it?

How Your Gift Helps

Your planned gift to Population Connection helps us educate young people and advocate progressive action to stabilize world population at a level that can be sustained by Earth’s resources. Among many things, your support will help us:

 
develop K-12 and secondary education materials for teachers and professors so they can easily incorporate population studies into their classes;
 
 
advocate for reproductive health and lead grassroots outreach efforts to college students to motivate them to take action on behalf of marginalized communities and our beleaguered planet.
 
 
raise awareness of population issues and the need for empowering solutions through our extensive online and offline communications.