As you plan your giving for the remainder of 2025 — and look ahead to your charitable plans for 2026 and beyond — it’s important to understand how recent legislation could impact you.

The recently passed One Big Beautiful Bill Act (OBBBA) includes a number of tax-related provisions that could influence your philanthropic strategies, including one big change that expands tax advantages for older taxpayers.

Read on to see the key highlights and what they mean for you.*

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Standard Deduction Rises

The OBBBA made a few key provisions of 2017 legislation permanent, including standard deductions which will increase to $15,750 for single filers and $31,500 for married couples filing jointly in 2025.

• • What this means for you: Because these amounts may impact your eligibility to itemize deductions, it may be worthwhile to consider other tax-smart giving strategies that allow you to make a difference for local patients and families. Learn more about giving through your donor advised fund, giving from an IRA and donating appreciated assets, such as stocks, bonds, mutual funds, real estate/property and business interests (which may allow you to avoid capital gains taxes).

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Cash Gift Charitable Deduction for Nonitemizers

Nonitemizers can now deduct up to $1,000 ($2,000 for married couples filing jointly) in cash gifts to public charities like the Sanford Health Foundation.

• • What this means for you: If you’ve been thinking about giving but haven’t been sure how or where to start, this tax benefit may be an opportunity to jump-start your charitable planning. Learn about our giving priorities and see how you can make an impact for local patients and families.

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New Limits for Top Earners

For those in the top tax bracket, the OBBBA caps charitable deductions at 35%, slightly reducing the tax benefit of large gifts starting in 2026.

• • What this means for you: Consider giving before year-end to maximize your tax benefits before the cap takes effect. See our year-end giving timelines and learn about different ways to give.

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New Deduction Limits for Itemizers and Corporations

If you itemize, you’ll need to give more than 0.5% of your AGI (1% for corporations) before deductions kick in (beginning in the 2026 tax year).

• • What this means for you: If you itemize, or if you’re a corporation that itemizes, timing your gift is more critical than ever to ensure you can maximize tax advantages. Giving before the end of the year may be something to seriously consider. See our year-end giving timelines and learn about different ways to give.

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Extension for Cash Gift Deductions

The ability to deduct 60% of your adjusted gross income (AGI) for cash gifts is now permanent.

• • What this means for you: Since this ability has been in existence, this isn’t a huge change however, it may be an opportunity to think beyond a cash gift. Oftentimes, donating a mix of cash and non-cash gifts may provide greater tax advantages while also making a significant impact on health care in your community. Learn about giving non-cash gifts.

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Bonus Deduction for Seniors

From 2025-2028, donors age 65 and older can claim a $6,000 deduction ($12,000 if filing jointly) regardless of itemizing, if you meet income requirements. The new deduction is in addition to the standard deduction for 2025 and the existing additional standard deduction for those 65 and older.

• • What this means for you: Depending on your income level and whether you itemize, this change could be a tax-smart giving opportunity. Connect with your professional advisor to learn more and, if you’re age 70½ or older, don’t forget about the tax advantages of making a qualified charitable distribution (QCD) through your IRA.

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Estate Tax Exemption Changes

Starting in 2026, estate tax exemption locks in at $15M per person. Originally, this exemption was slated to drop down to $6-7M in 2026, so this is a shift worth noting. Also important to note: each state is subject to its own estate tax.

• • What this means for you: This could be an opportunity for you to consider how a gift through your estate could not only launch your legacy, but also provide important tax benefits — all while making a difference for patients and families right here in our community.  Learn about giving through your estate.

Learn More

Our team at the Sanford Health Foundation is here to help you maximize your philanthropic impact while also maximizing tax advantages. We can even work with your professional advisor to share more information, provide illustrations and explore more giving options.

*This information is provided for educational purposes only and is not intended as legal or tax advice. Consult your tax advisor to determine how tax laws impact your situation.