Please be aware that Johns Hopkins University does not provide tax, legal or accounting advice. This material has been prepared for informational purposes only; donors should consult their own tax advisors regarding their personal situation.
The One Big Beautiful Bill Act (OBBBA) contains a number of provisions that will change how charitable donations are handled for income tax purposes beginning in 2026. We encourage donors to consult their tax advisors to determine how these changes impact them.
Some of the provisions taking effect in 2026 are:
- New charitable deduction for non-itemizers: Tax payers who do not itemize deductions may deduct up to $1,000 ($2,000 for married filing jointly) for cash gifts to public charities like Johns Hopkins University.
- New deduction limits for itemizers: Only donations that exceed 0.5% of a taxpayer’s adjusted gross income will be deductible.
- Additional limitation for high-income donors: Itemized deductions for those in the top tax bracket (37%) will be limited to 35% through a specific formula.
- New deduction limits for corporations: Only donations that exceed 1% of a corporation’s taxable income will be deductible. The deduction is capped at 10% of the corporation’s taxable income.
What can donors do now:
- Talk with their tax advisors about how these changes, and other changes in the OBBBA, affect them.
- Consider whether they may benefit from the following strategies:
- accelerating charitable gifts in 2025
- “bunching” multi-year gifts to maximize the charitable deduction
- using a donor advised fund to effectuate philanthropic goals
- Evaluate other tax-wise giving strategies, such as gifts of appreciated assets or gifts of retirement plan assets.
