A new tax law—The One Big Beautiful Bill (OBBB)—was recently passed, bringing major changes to how charitable contributions are treated in the U.S. tax code. At Turkish Philanthropy Funds, we want to ensure our donors are informed and empowered to make the most of these changes as they support the causes they care about.
Here’s what you need to know:
1. For non-itemizers: You Can Now Deduct Charitable Gifts Without Itemizing
Starting in 2026, donors who take the standard deduction can still deduct charitable donations:
- Up to $1,000 for single filers
- Up to $2,000 for married couples filing jointly
This means every donation you make to TPF or our partners can help reduce your taxable income, even if you take the standard deduction. Yet, gifts to Donor-Advised Funds are ineligible for this deduction.
2. For itemizers: New Limits for Itemizers
Itemizing donors now face new restrictions:
- A 0.5% floor on AGI: Effective in the 2026 tax year, itemizers who make charitable contributions will only be able to claim a tax deduction to the extent that their qualified contributions exceed 0.5% of their adjusted gross income (AGI). For example, a couple with an AGI of $300,000 could only deduct charitable donations in excess of $1,500.
- High earners have itemized deductions capped at 35%: The new legislation caps the tax benefits of itemized charitable deductions at 35%, even for those in the 37% marginal tax bracket. In other words, high-income filers donating $1,000 would receive a $350 deduction instead of the current $370. This change goes into effect in the 2026 tax year.
Implication: Donors in higher tax brackets who are considering a significant philanthropic gift may want to think about accelerating their gift to 2025 to maximize their deduction under the current marginal rate before the new cap goes into effect.
3. Legacy Giving Tools
Planned giving tools such as bequests, charitable annuities, and remainder trusts still come with strong tax incentives. The 2025 estate and gift tax exemption is $13.99 million for single filers and $27.98 million married filing jointly. In 2026, these numbers increase to $15 million and $30 million respectively. These allow you to support TPF or TPF partners in the future—while possibly receiving income or tax benefits today.
This is an ideal time to consider joining TPF’s Legacy Society, ensuring your values and impact live on for generations.
4. More Flexibility in How You Give
The new law allows donors to carry forward unused charitable deductions across multiple tax years. This makes it easier to:
- Make larger gifts without exceeding annual limits
- Plan multi-year commitments to programs or scholarship funds
- Align your giving with major life or financial events
Example: If you make a large gift to TPF this year but exceed the deduction limit, you can apply the remainder to future tax years.
5. A Stronger Giving Ecosystem
The new law encourages tools that TPF has championed for years:
- Donor-Advised Funds
- Giving Circles
These platforms will now play an even bigger role in helping donors give intentionally, build community, and respond flexibly to urgent needs.
Next Steps for TPF Donors
- Review your 2025 vs 2026 giving strategy with your tax advisor. Donors may benefit from making larger gifts before deduction limits tighten in 2026.
- Open or contribute to your Donor-Advised Fund at TPF to take full advantage of new carryforward and deduction limits.
- Create a legacy gift through your will, trust, or estate to secure lifetime benefits and long-term impact
- Join a Giving Circle to increase your collective impact and maximize above-the-line deductions.
At TPF, as your philanthropic partner, we’re here to help you navigate these changes and maximize impact whether you’re giving today, planning for tomorrow, or building a legacy.
📩 Contact TPF Director of Philanthropy, Pinar Ozyurek at [email protected] to start a conversation.
