Calendar year end is a hugely important time for all nonprofits, and Tyler Arboretum is no different. The last months of the year bring to mind the holiday season, celebrations with family and friends, and a spirit of giving and gratitude. These feelings of love extend to nonprofit organizations – year end is the busiest time for charitable giving!
The end of the year is also an important time to consider the tax benefits of charitable giving. Donating to the nonprofit organizations you care about is not only a way to positively impact your community, but also a way to lower your tax liability.
Many of us are familiar with basic charitable contribution tax deductions, but the “One Big Beautiful Bill” (OBBB) passed in July 2025 contains some specific changes that are worth familiarizing yourself with. Donors may want to consider these changes and make thoughtful decisions about the timing of their charitable giving and what type of assets to gift. As always, it’s best to work with your financial advisor, CPA, or attorney for advice on your personal situation.
Below are a few highlights from OBBB taking effect in tax year 2026:
- Taxpayers who do not itemize charitable deductions can take the standard deduction AND deduct cash donations contributed to qualifying charities — up to $1,000 for single files or $2,000 for married couples filing jointly.
- Charitable contributions must exceed 0.5% of adjusted gross income before receiving tax benefit.
- For those in the highest tax bracket, charitable deduction benefits are capped at 35%.
Of course, tax benefits are not the primary driver for most charitable contributions. Donors are primarily driven by their passion for certain causes and give because it’s a good thing to do. At Tyler Arboretum, we rely on our community of support and are grateful for all of the donors who help make our mission possible.
