Three Ways the New Law Affects Donors

August 2025 – Generosity CORNER – The DeKalb County Community Foundation is committed to keeping donors, nonprofits, and professional advisors informed about changes that may impact charitable giving. On July 4, 2025, the One Big Beautiful Bill Act (OBBBA) was signed into law. While the sweeping 900-page legislation reshapes many areas of U.S. policy, several key provisions directly affect philanthropy.

Here are three important insights:

1. Standard deduction changes and itemization limits
The new law makes the higher standard deduction from the 2017 Tax Cuts and Jobs Act permanent. However, it also limits how much charitable giving high-income taxpayers can deduct. This may discourage itemizing but reinforces that most donors give because they care—not just for the tax benefit.

2. New deduction for non-itemizers
Beginning in 2026, taxpayers who do not itemize will be able to deduct up to $1,000 (or $2,000 for joint filers) in charitable donations. While Donor Advised Funds are excluded, this new incentive could inspire more households to give.

3. Estate tax exemption made permanent
The estate tax exemption will not sunset, as previously expected. This gives high net-worth families more time to plan their giving strategies, though most charitable estate gifts will still be motivated by impact, not tax savings. Note: The Illinois estate tax threshold of $4 million remains unchanged.

Whether you are a donor, nonprofit leader, or professional advisor, the Community Foundation is here to help you navigate charitable planning. We are happy to answer questions or collaborate to make the most of these new provisions. To learn more or discuss how this may affect your giving, please contact Executive Director Dan Templin at 815-748-5383 or dan@dekalbccf.org.

Philanthropy comes in many forms, and every act of generosity makes a difference. In these Generosity CORNER articles, we’ll share ideas for giving, smart strategies for maximizing your charitable impact, and tips on tax-wise giving, legacy planning, and family philanthropy. Whether you’re a charitable estate planning advisor, a longtime donor, or just beginning your giving journey, this space is for you. Inform and inspire!

Together, we can make a lasting difference—one generous act at a time!