The 2025 One Big Beautiful Bill (OBBB) Act created a provision for non-itemizers starting this year.
Taxpayers taking the standard deduction can deduct cash donations to charities up to $1,000 for single filers and $2,000 for married couples filing jointly. (Note: Donor-advised fund donations are excluded.)
Why this is important:
· Nonprofits can promote this provision to encourage low- and mid-level donors to contribute.
· According to National Council of Nonprofits, “The non-itemizer deduction is estimated to generate $74 billion over 10 years for nonprofits.”
How to use it:
· Communicate this opportunity in your written and email appeals to donors
· Ensure everyone on the development team understands the various provisions related to charitable giving in the OBBB
· Make a year-end push to your low- and mid-level donors.
Various reports indicate that only about 10-15% of taxpayer returns itemize deductions. That means the OBBB has far-reaching implications for your donor file. Take advantage of it!
