Charitable Giving and New Tax Law

Learn more about the new charitable giving provisions included in the One Big, Beautiful Bill Act

Charitable Giving and the New Tax Law

Learn more about the new charitable giving provisions included in the One Big, Beautiful Bill Act and how these provisions will impact giving to schools, colleges, and universities. 

Information below provided by: Council for Advancement and Support of Education

Contact Us and Your Advisors

The One Big, Beautiful Bill is quite long and detailed. We have called attention to only a few provisions that pertain to charitable giving directly or indirectly. Please consult your own legal or financial advisors regarding how you or your business could be affected by other parts of this new tax law.

Contact the Office of Advancement with questions: advancement@stonehill.edu

I. Permanent Restoration of a Charitable Deduction for Non-Itemizers

The Act restores a permanent charitable deduction for non-itemizers. Non-itemizing taxpayers would be able to deduct:
* $1,000 for individuals
* $2,000 for joint filers

Effective: 2026 tax year and beyond

II. New Floor on Deduction for Itemized Charitable Giving

The Act introduces a 0.5% of Adjusted Gross Income (AGI) floor on itemized charitable giving. A donor who itemizes would only be allowed to deduct the amount of his or her charitable donation above this floor.

Effective: 2026 tax year and beyond

III. Limitation on Value of Itemized Deductions

The Act caps the value of itemized deductions, including the charitable deduction, for taxpayers in the 37 percent marginal tax bracket at 35%.

Effective: 2026 tax year and beyond

IV. Permanent Extension of 60% AGI Limitation on Cash Gifts

The Act permanently extends the 60% Adjusted Gross Income (AGI) limitation for cash gifts that was temporarily enacted by the Tax Cuts and Jobs Act in 2017. Prior to the TCJA, this limitation was 50% of AGI.

Effective: 2026 tax year and beyond

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