Even the smallest shifts in tax policy can create big waves for nonprofits, shaping how donors give and how leaders plan for the future. The One Big Beautiful Bill (OBBB) is one piece of legislation that could directly impact how generosity flows in the years to come.

While you’ve heard about it in the news, we wanted to take a moment to analyze specifically how the OBBB could impact your organization. In this post, we’ll break down the essentials of the OBBB, what new tax provisions may mean for your donors, and, most importantly, how you can translate complex financial changes into practical steps that serve your mission.

What Is the “One Big Beautiful Bill”?

The One Big Beautiful Bill (OBBB) H.R.1 in the 119th Congress is designed as a sweeping tax and fiscal reform package. Some lawmakers described it as a “clean-up bill” or a way to simplify, consolidate, and modernize sections of the tax code that affect both individual taxpayers and organizations.

For nonprofits, the OBBB’s importance lies less in its political positioning and more in its potential to influence giving behavior. Any time tax incentives change, so does the calculus for philanthropists and donors of all sizes. 

The bill brings together adjustments to charitable deductions and capital gains treatment that could either accelerate giving or hinder momentum.
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OBBB Key Tax Provisions That Affect Donors

This summary is a highlight of how OBBB could shape charitable giving. Here are the key takeaways for nonprofit leaders:
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Adjusted Charitable Deduction Limits

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• What changes: The bill raises the cap on charitable deductions relative to adjusted gross income (AGI). For individuals, the deduction limit increases to 70% of AGI (currently 60%). For corporations, the cap rises to 15% (up from 10%).
• Why it matters: High-capacity donors, particularly those making significant year-end contributions, gain more room to maximize their tax benefits. That creates a window to encourage larger, transformational gifts.
  

 Donor-Advised Fund (DAF) Clarifications

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• What changes: The OBBB introduces a new “above-the-line” charitable deduction of $1,000 for individuals and $2,000 for joint filing taxpayers who don’t itemize. Importantly, gifts to DAFs are explicitly not eligible for this deduction.
  
• Why it matters: this has real implications for both fundraising strategy and donor relationships. Nonprofit leaders may need to educate donors: if you want to claim the new universal deduction, your gift has to go straight to the nonprofit, not sit in your DAF.

Reduced Capital Gains Incentives for Non-Cash Gifts

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• What changes: The new legislation caps at 35% (currently at 37%) for the tax benefits of itemized charitable deductions. High earners in the 37% tax bracket will not get dollar-for-dollar value from the deduction for their charitable gifts.
• Why it matters: Donors in higher tax brackets who are considering a significant gift (particularly non-cash gifts such as stock) may want to consider accelerating their gift to 2025 to maximize their deduction under the current marginal rate before the new cap goes into effect.
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What This Means for Nonprofit Leaders

Signed into law in July of 2025, the OBBB provisions could reshape both how donors give and how nonprofits receive. Here’s the bottom line for nonprofit leaders and boards:

• Larger gifts are on the table. High-capacity donors may see this as a strategic year to give appreciated assets.
  
• DAFs may accelerate. With new payout rules, expect more movement from donor-advised funds to nonprofits.
  
• Small donors benefit too. The expanded universal deduction creates new talking points for year-end appeals.
  

This is not the moment to wait and see. Now is the time to start talking with your donors about these provisions. It’s also a way to demonstrate how your organization is savvy about financial sustainability and stewardship.
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Next Steps for Your Nonprofit Following OBBB

Here are considerations for your leadership team, board, and biggest supporters of your nonprofit in the wake of OBBB.
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1. Update Your Donor Conversations

Host Board and major donor briefings: Share these changes above about OBBB’s charitable provisions. Frame it as an opportunity to give more strategically.

Language to try: “New proposed tax changes could make it even more advantageous for you to give non-cash assets this year. We’d love to help you explore that.”
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2. Strengthen Your Gift Acceptance Infrastructure

Set up (or streamline) your brokerage accounts: Ensure your nonprofit has the ability to accept stock, crypto, and other non-cash gifts.

If you don’t have a brokerage account, now is the time to create one. If you already have a brokerage account in place, meet with your team to discuss your non-cash giving process.

Also take the time to refresh your Gift Acceptance Policy and Investment Policy Statement to reflect potential increases in non-cash giving.
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3. Empower Development Teams

Train fundraisers by providing scripts and FAQs on non-cash giving. Confidence is key in asking for gifts of stock, DAFs, or crypto. Especially with Giving Season, be sure to incorporate “tax-smart giving” messages in your email outreach and when facilitating 1-1 conversations, especially with high-capacity donors.

Final Takeaway for the OBBB’s Financial Impact on Your Nonprofit

At Infinite Giving, we believe money is mission fuel. Policy shifts like the OBBB are not just legal text but they’re also real opportunities to better serve your donors and strengthen your sustainability. Whether it’s accepting stock, facilitating DAF gifts, managing reserves, or creating an endowment, our goal is to simplify the financial side so you can stay focused on impact.

The One Big Beautiful Bill has the potential to reshape the giving immediately in 2026 and for the foreseeable future. As nonprofit leaders, your role is not to become a tax expert overnight but to translate these opportunities into clear, mission-driven conversations.

Stay curious, stay prepared, and invite generosity in all its forms.

Your donors want to give beautifully especially in this time of need. Your job is to make it possible.
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