Congress made major revisions to the tax code when it passed Public Law 119-21, more commonly known as the One Big Beautiful Bill Act. In the case of charitable giving under the act, one such major change concerns non-itemizers. These are people who take the standard deduction when filing their taxes (in 2025 this is $15,750 for an individual and $31,500 for married filing jointly). According to the IRS, since the Tax Cuts and Jobs Act of 2017 approximately 90% of Americans take the standard deduction so this change is relevant for most Americans. Under current laws, when a non-itemizer makes a cash donation to a charity they do so without any incentive or reward from the federal government. This is in stark contrast to the itemizers who can deduct the entirety of their donation from their taxes on a Schedule A. However, beginning in 2026, taxpayers will be allowed to deduct up to $1000 for an individual and $2000 for married couples filing jointly for cash gifts made directly to qualified operating charities. This new deduction will reduce one’s income tax burden. For example, if a taxpayer earns $100,000 and their marginal tax rate is 22%, without itemizing...
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