Easy(ish) reading on changes to charitable deduction rules

Written by Clark Collier, CAP(R), CICF Director of Giving Strategies 

At the CICF Collaborative (which includes Central Indiana Community Foundation, Hamilton County Community Foundation, IMPACT Central Indiana, the Indianapolis Foundation, and Women’s Fund of Central Indiana), we’re committed to staying on top of changes in the tax laws that could impact the charitable planning advice you provide to your clients. Our role is to be knowledgeable so that we can point donors in the right direction and let them know when it’s crucial to consult their tax advisors. Our role is also to let you know about key legal developments and other trends related to charitable planning so that you can more easily find the information you need to properly advise your clients. 

A priority for our team is to sift through the layers and layers of information available on any given topic, including, at the moment, the changes to charitable deduction rules in the recently-enacted One Big Beautiful Bill Act (OBBBA). We want to make it as painless as possible for you to get up to speed. And, as always, we want to be your first call when you’re working on a client’s charitable plans. In almost every case, the CICF Collaborative’s tools can help achieve your client’s philanthropic goals while maximizing tax benefits.  

In that spirit, we’re sharing a handful of articles that we think you’ll find especially useful as you navigate the months ahead under the OBBBA’s rules. 

Concise summaries of changes to charitable deduction rules 

How Trump’s big bill makes it easier for all Americans to claim the tax break for charitable donations — not just rich people 

This MarketWatch article is especially valuable for attorneys, CPAs, and financial advisors who advise charitable clients but may lack time to parse the law’s technical intricacies. The article delivers clear, actionable insights by spotlighting the OBBBA’s forthcoming “above-the-line” charitable deduction—$1,000 for individuals and $2,000 for married couples—which democratizes tax benefits for many donors starting in 2026. The article crisply outlines tradeoffs, noting that while middle-income donors gain access, itemizers and corporations face new hurdles like AGI based floors and deduction caps, offering a balanced overview of where strategies may need adjustment. We appreciate the comments by Patrick Rooney, professor of economics and philanthropy emeritus at Indiana University’s Lilly Family School of Philanthropy, who is a well-respected, longstanding leader in the philanthropic sector. 

Trump’s ‘big’ bill gives millions of taxpayers a new charitable tax break, but whether it will help nonprofits is unclear 

You might like this article that appeared in The Conversation, which also succinctly outlines the OBBBA’s changes to charitable deductions. The article takes a slightly broader, more analytical approach than the MarketWatch article, in that it integrates expert commentary, such as perspectives from economist Daniel Hungerman, to question whether the new tax incentive will translate into increased giving—or rather shift giving patterns—introducing nuance around the uncertain impact on charitable behavior. This adds a valuable layer of context if you’re wondering not only how the new laws works, but also whether the new deduction for non-itemizers (starting in 2026) actually moves the needle for nonprofits in real-world giving trends. 

“Winter is coming” 

We appreciate commentary in industry publications that addresses not only what is in the law, but also why it is important to pay attention and stay vigilant. For example, this article may be a timesaving resource for you and other advisors because it sharply underscores the urgency of leveraging the enhanced estate and gift tax exemptions before potential future rollbacks, all conveyed through its vivid “tax summer” versus “tax winter” framing. This piece, on the other hand, comes at the issue from a different angle, delivering a clear, consolidated summary of the key changes introduced by the OBBBA, including the new above-the-line deduction for non-itemizers and the impending 0.5% AGI floor for itemizers. The article balances the narrative by highlighting not only the benefits—such as the meaningful win for non-itemizers—but also warns about the complexity of implementing these changes. In short, an underlying theme in each of these articles is that new laws create lots of planning opportunities, which could be great news for your practice. 

2025 is a crucial year for your charitable clients 

If you don’t have time to sift through all of these articles, just know this: 2025 is a crucial year to evaluate your clients’ charitable giving plans, especially for your charitably minded clients who itemize deductions. Be sure to help your clients evaluate the benefit of front-loading, or “bunching,” charitable contributions this year, such as through a donor-advised fund at an entity within the CICF Collaborative. We covered this topic in a recent article on our website, which you can find (here). last  

Thank you for the opportunity to work with you and your clients! We are grateful for your partnership. 

About the CICF Collaborative 

CICF Collaborative is a partnership of philanthropic organizations working together to strengthen communities across the region. Each entity within the CICF Collaborative (including the cornerstone entities, Central Indiana Community Foundation, Hamilton County Community Foundation, IMPACT Central Indiana, the Indianapolis Foundation, and Women’s Fund of Central Indiana) brings deep knowledge, strong relationships, and its own individual, focused mission. The CICF Collaborative unities the entities by providing shared services, allowing the entities to operate more efficiently and effectively. By leveraging what we each do best, we’re able to better serve our communities and create more lasting impact, together. Learn more » 

About the Author 

Clark Collier is CICF’s director of giving strategies, working with individuals, families, and their advisors to structure meaningful and impactful philanthropy. As a Chartered Advisor in Philanthropy (R), Clark provides gift planning support and counsel to the CICF Collaborative and nonprofit organizations throughout the region. He previously served as a philanthropic advisor for CICF and in development roles for both local and global organizations.