Tax Season Is Over, But the OBBA Conversation Is Just Beginning

Professional advisors have had months to digest the tax provisions in the One Big Beautiful Bill Act (OBBA). Your clients haven't. For most of them, this year's tax season was the first real signal that something had changed, and many are only now piecing together what it means for their finances and their philanthropy. That gap creates an opening: clients who are newly paying attention tend to be more receptive to guidance right now, which makes this a good moment to revisit charitable planning strategies, even ones you've already covered.

Here are five developments worth weaving into those conversations, along with the local angle that can make the discussion land.

Charitable giving is in the headlines. Mainstream outlets are giving new attention to charitable strategies, including recent Wall Street Journal coverage of donor-advised funds as a way to combine tax efficiency with community impact. Many clients don't realize the Community Foundation offers donor-advised funds and other giving vehicles built specifically to support causes close to home. If a client raises the topic of donor-advised funds, that's a natural cue to bring the Community Foundation into the conversation.

A new deduction floor changes the math. Starting in 2026, clients must clear a threshold — qualifying charitable contributions exceeding 0.5% of adjusted gross income — before those gifts generate any deduction at all. For clients whose annual giving falls below that line, "bunching" multiple years of contributions into a single year through a donor-advised fund can help them clear the floor while keeping their local support steady over time.

A deduction cap adds a second wrinkle. Clients in the top 37% tax bracket now see itemized charitable deductions effectively capped at a 35% rate. In practical terms, a $10,000 gift that once generated a $3,700 deduction may now generate closer to $3,500. Between the new floor and cap, charitable giving plans call for more intentional structuring than before.

Non-itemizers have a new tool, with a catch. Clients who don't itemize can now claim an above-the-line deduction of $1,000 for single filers or $2,000 for joint filers. That's meaningful for smaller, more frequent donors, but it's worth being direct that this deduction doesn't extend to noncash gifts or contributions to donor-advised funds, both of which remain important pieces of many giving strategies.

Appreciated stock is still one of the smartest ways to give. Gifting long-term appreciated securities continues to outperform writing a check in most cases, since it lets clients avoid capital gains tax on the appreciation. Clients who itemize can also deduct the full fair market value of the gift.

A note to advisors: You don't have to navigate these changes alone. The Community Foundation partners with attorneys, CPAs, and financial advisors every day to help clients build charitable giving strategies that are both tax-smart and rooted in the causes they care about locally. Whether a client needs a donor-advised fund set up or simply wants to understand what impact looks like close to home, we're ready to help. Reach out to the Community Foundation and let us join your clients' charitable planning team.