On July 4th, 2025, President Donald Trump signed the “One Big Beautiful Bill” Act into law. Read on to discover some key features of the bill that could impact your fundraising – and what to do next.
Since the “One Big Beautiful Bill” Act became law, I’ve been hearing the same questions from nonprofits and fundraisers in my coaching sessions, on LinkedIn, and beyond: what does this mean for our donors? Are we about to lose support? Should we be worried?
If you’re feeling unsure, you’re definitely not alone, and your confusion is totally valid.
Yes, some donor behaviors may shift, especially around corporate giving and major donors.
But there are opportunities here, too – especially if your strength is in community-centered fundraising, like engaging individual donors, building grassroots support, or nurturing a loyal base of monthly givers.
No matter what, we can all agree this is a major, historic policy change, raising big questions across our sector. In this article, we’ll cover everything you need to know about the bill’s impacts and what you can do to prepare your organization.
There’s been a lot of buzz around President Trump’s massive policy bill, which was the source of much discussion and back-and-forth before finally being approved.
The approved version of the bill includes sweeping changes to a variety of existing government programs, an extension of the 2017 Tax Cuts and Jobs Act, and some key features that could impact fundraising for years to come.
Let’s take a closer look.
Here are the four features of the law that might impact nonprofits – both positively and negatively.
The bill extended the standard deduction increases originally introduced under the Tax Cuts and Jobs Act. Standard deduction limits are now as follows:
Although we may see fewer people itemizing from this, there’s some good news: the standard charitable giving deduction has also increased.
Instead of only being able to claim $300 in charitable giving when going with the standard deduction, taxpayers can now deduct $1,000 in charitable giving – and up to $2,000 for married couples filing jointly.
I know it might sound a little confusing because these changes feel in opposition with one another.
On one hand, raising the standard deduction means fewer people will itemize their taxes. That could make some donors less motivated to give, especially those who’ve previously given for the tax break.
But on the other hand, the bill increases the charitable deduction for folks who take the standard deduction – which is 90% of taxpayers, or 9 out of 10 donors. So, more everyday donors who don’t usually itemize can benefit from giving and may be encouraged to give even more.
As you see, it’s nuanced. Either way, your fundraising game needs to be flexible.
Keep showing up for your major donors thoughtfully – they might need more relationship-building now that tax incentives aren’t the main driver. But don’t forget about your everyday supporters! With the expanded charitable deduction, more folks can now get a little tax benefit for their generosity. It’s a great window to invite them in more intentionally.
This is where a monthly giving program really comes in handy. A simple, easy-to-find monthly giving page on your website with messaging that speaks to why this specific donor segment gives, and provides options that feel doable at different levels, can help you welcome new donors and grow a reliable, loyal support base.
Also, be ready to help your donors understand how these new tax changes might impact their giving.
That could look like adding a simple line to your automated donation receipt or your donation landing page explaining the changes to charitable giving deductions, with a link to the IRS site for anyone who wants to learn more.
A little clarity will go a long way and encourage your donors to rethink how and when they give.
The bill also sets the following floor and ceiling for charitable deductions for itemizers:
This means that someone with an AGI of $1,000,000 wouldn’t receive tax benefits for any gifts $5,000 and under.
This one could really impact major donors.
When we talk about a “floor,” that means smaller gifts from wealthy donors might not come with a tax incentive anymore. So, some of those mid-size gifts could slow down or disappear since there’s no tax break. And the “ceiling” means those super-generous donors who’ve been giving big chunks of their income might pull back once they hit the cap.
Research from the Lilly Family School of Philanthropy estimates these changes could reduce charitable giving by $4.1 billion to $6.1 billion annually.
You’ll want to encourage your donors to rethink how and when they give; maybe spreading gifts out over a few years or adjusting size and timing to fit new limits.
But more importantly, this means building relationships that go way beyond tax incentives. Really get to know what motivates your donors, and help them find giving strategies that feel good, without making it all about the taxes.
And as I always remind my coaching clients, don’t forget to keep broadening your donor base with community-focused fundraising. You don’t want to lean too hard on a handful of big gifts that could change because of these new rules.
Corporate giving has been a bit of a rollercoaster over the years. For a long time, companies either gave very little or didn’t get much tax incentive to give. Then, rules changed to encourage more corporate philanthropy, and corporate giving grew as a key source of nonprofit support.
Now, this bill brings a new change: corporations must give at least 1% of their taxable earnings to qualify for any tax benefit.
Before, there wasn’t a minimum. Any amount could count toward a deduction, up to 10% of taxable income. The cap at 10% still remains. Corporations will also be able to carry any tax benefits forward for a period of five years.
Nonprofits might see fewer smaller or one-time donations from companies who otherwise would have given for the tax break.
Ernst & Young estimates a $4.5 billion annual reduction in corporate charitable giving due to these changes. However, with some smart strategizing, you may be able to maintain corporate support for your cause.
Start by having open conversations with your corporate partners about these changes and how they might impact annual giving.
Suggest that your corporate partners make bigger gifts less frequently or spread donations over multiple years to maximize their tax benefits. That entails larger, strategic gifts or multi-year commitments that work within the new rules. And as usual, focus on building strong, long-term relationships with companies instead of relying on one-off donations.
Corporate giving is still important, but it’s one of those key areas that continues to evolve based on the ever-changing tax rules.
Wealthy universities with large endowments will see the following increase in tax rates, depending on the value of their endowment per student:
Luckily, many universities fall below these new thresholds, and there are often exceptions made for smaller liberal arts colleges.
But if you’re in higher ed, now is the time to double-check where your institution falls under the new tax endowment tiers and what that means for your budget.
If you’re close to a tipping into the next tier with your endowment per student, manage your tier carefully to prevent bumping into a higher rate.
And like we mentioned earlier, now is a good time to revisit your donor base. See if giving to your endowment has shifted, and make sure your fundraising team knows how to explain these new rules to donors in plain language.
The more you can connect those dots for them, the easier it’ll be to keep those gifts coming.
Here’s what you can start doing to curtail any potential dip in donations as a result of these changes:
Bonus resources: If you haven’t already, check out episode 153 of our podcast. We talk about what healthy, sustainable partnerships actually look like and how to align with them for the long road ahead. Plus, we’ve also written a follow-up article detailing our predictions for how this bill will impact year-end giving.
While the changes that fall under the One Big Beautiful Bill Act might feel overwhelming, this could be your opportunity to pause, reset, and strategize.
Sure, folks are quick to prescribe “diversify your revenue,” and while it might sound like it’s pie-in-the-sky advice, there’s real wisdom in it. You don’t want to put all your eggs in one basket, especially with major donors and corporate giving at risk of pulling back.
As this new bill reminds us, it’s not just major donors who are stepping up. Don’t underestimate your everyday donors, moved not by tax incentives, but by your mission. They’re responding to urgency, bold calls to action, and the real impact stories you’re sharing.
Yes, the landscape is shifting. And yes, this can feel scary. But with thoughtful planning and a willingness to adapt, this moment could be your silver lining – the chance to build something that’s more rooted in your community’s needs and more resilient for the road ahead.
Looking for a partner to help you navigate the unknown? We’re here to help, with innovative tools, guiding resources, and coaching to help you get your organization to the next level.
Brittan Stockert serves as a Fundraiser Coach at Donorbox. With over 20 years of experience in the public sector, she’s passionate about helping nonprofits, NGOs and social enterprises create effective, sustainable fundraising strategies. Brittan focuses on building stronger donor relationships, refining CRM systems, and simplifying the entire fundraising process to make it easier for organizations to thrive.
She also co-hosts a podcast where she shares practical, no-nonsense tips to help nonprofit leaders feel more confident and less overwhelmed in their fundraising efforts. Outside of work, Brittan serves on the board of an immigrant- and refugee-led nonprofit, volunteers with mutual aid groups, and is an active member of her local PTA.
She’s a proud mom to two kids (one neurodivergent) and a dog mom who loves mountaineering and outdoor adventures. Based in Seattle, Brittan loves connecting with nonprofit professionals and sharing her knowledge to help them succeed.
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Brittan Stockert