As a result of the One Big Beautiful Bill Act (OBBBA), there is a new above-the-line charitable deduction for cash gifts from nonitemizers ($1,000 for single filers and $2,000 for those filing MFJ) beginning in 2026. For those who will continue to itemize, gifts of cash remain generally deductible up to 60% of adjusted gross income (AGI), though there are some new adjustments that may impact your overall tax savings.
As the saying goes, “the devil is in the details.” OBBBA has provisions that are retroactive to Jan. 1, 2025, and others that will begin Jan. 1, 2026; some changes are permanent, others are indexed for inflation, some are scheduled to expire in the future and several prior laws have been repealed. It will be important to check with your advisors for your specific situation.
Sharpe Group will continue to analyze the implications of this legislation. To stay informed, sign up for our blog and Insights newsletter and listen to Sharpe Insights podcast on your favorite streaming platform.
Barlow T. Mann, JD, Sharpe Group’s general counsel, has guided charities of all sizes and is recognized as a leader in the planned giving industry. You can connect with Barlow via LinkedIn or by email.
