Charitable people are still charitable: navigating hope in the wake of OBBBA

By Joe Wallis, CPA

2025 has tested the resilience of nonprofit leaders like never before. Between economic uncertainty, donor fatigue, and sweeping changes introduced by the One Big Beautiful Bill Act (OBBBA), many organizations are grasping at their last wrinkle of hope. But here’s the truth we must hold onto: charitable people are still charitable. Tax law changes don’t rewrite the generosity embedded in the hearts of our communities.

Starting in 2026, the OBBBA tax law introduces a new charitable deduction for non-itemizers—up to $1,000 for individuals and $2,000 for couples. This change is especially significant for everyday donors who, since the higher standard deduction was implemented in 2017, have not received a tax benefit for their charitable giving. The new deduction is expected to stimulate billions in additional giving annually.

Shannon McCracken of the Nonprofit Alliance calls this “one piece of the shift toward democratizing giving,” emphasizing that “all giving levels are valuable — not just those gifts coming from higher-income people.” While not a silver bullet, it’s a step toward re-engaging donors who may have drifted away from organized philanthropy.

Let’s be honest—people don’t give just to save on taxes. As my firm’s tax partners often remind me, while charitable donors do receive a tax benefit, they’re not coming out ahead from a cash flow standpoint. The truth is, they give because they care—because they believe in causes, in community, and in making a difference. The tax savings are a nice bonus that, in the end, might simply allow them to give a little more.

OBBBA also permanently extends many provisions from the 2017 Tax Cuts and Jobs Act, including lower tax brackets and a higher standard deduction.

However, the broader impact of OBBBA on nonprofits is mixed. While the universal deduction is a win, other provisions—such as caps on itemized deductions and new floors for corporate giving—are expected to reduce nonprofit resources by at least $81 billion over the next decade (Council of Nonprofits). The Council of Nonprofits warns, “At a time when nonprofit organizations face enormous financial challenges, these tax provisions will make it harder for organizations to fill gaps unmet by local, state, and federal governments.”

So what does this mean for nonprofit leaders?

• Lead with hope. Yes, 2025 has been hard. But messaging must be rooted in opportunity.
• Reconnect with donors. Use the new deduction as a reason to re-engage—not just inform.
• Invest in relationships. The delay until 2026 gives time to build long-term donor strategies.
• Celebrate every gift. The $2,000 donor is just as vital as the $200,000 donor. Both express belief in your mission.

Brian Walsh of Faith and Giving reminds us, “Your local food bank or domestic-abuse shelter can’t survive on crowdfunding.” Structured, intentional giving is what sustains the nonprofit sector—and this new law gives us a chance to rebuild that structure.

Let’s not forget: generosity is not a line item. It’s a legacy. And in times like these, it’s our job to remind the world that charitable people are still charitable.

Further Reading

Will the new $2,000 tax break bring back everyday donors?

Congress passes major tax package: nonprofits directly impacted