If giving back is part of your financial plan, there’s a new reason to take a closer look at how and when you make charitable gifts.

The One Big Beautiful Bill Act (OBBBA), signed into law in July 2025, brings some of the most significant changes to charitable tax deductions we’ve seen in years. Beginning in 2026, the tax treatment of charitable gifts will look different depending on whether you take the standard deduction, itemize your deductions, give through a donor-advised fund (DAF), or make charitable gifts through your business.

The good news? Charitable giving is still an important way to support the causes you care about. But understanding the new rules can help you make thoughtful decisions about your giving strategy.

Here’s what GGICF donors should know.

If you take the standard deduction, there’s a new benefit.

Beginning in 2026, taxpayers who take the standard deduction will be able to deduct up to $1,000 in cash charitable gifts to qualified charities, including GGICF and our funds. For married couples filing jointly, that limit increases to $2,000.

This is a new opportunity for people who don’t itemize their deductions.

There is one important catch: this benefit applies only to direct charitable gifts. Contributions to donor-advised funds do not qualify.

Say you give $600 directly to the Fund for Greater Grand Island; you could deduct the full $600. If you give $2,400, the deduction would be limited to $1,000—or $2,000 for married couples filing jointly.

The benefit may be modest, but for many donors, it provides another incentive to make charitable giving part of their annual financial planning.

What about donor-advised funds and planned giving?

Donor-advised funds remain a valuable tool for donors who want to make a larger charitable contribution now and recommend grants to nonprofits over time. However, DAF contributions will not count toward the new $1,000/$2,000 standard deduction benefit.

Planned giving may also look a little different under the new rules. With higher estate tax exemptions now permanent, some donors may find themselves thinking less about maximizing tax savings and more about the impact and legacy they want their giving to create.

That shift can open the door to a bigger conversation: what do you want your charitable giving to accomplish- not just this year, but for years to come?

If you itemize, your charitable deduction will change.

For donor who itemize their deductions, 2026 brings a new threshold to charitable giving.

Only the portion of your charitable contributions that exceeds 0.5% of your adjusted gross income will be deductible. In addition, the deduction will be capped at 35% of the gift’s value, even for donors in a higher tax bracket.

Here’s an example:

If your income is $300,000 and you donate $6,000, the first $1,500 would not be deductible because it represents 0.5% of your income. The remaining $4,500 would be eligible for deduction, subject to the new limitations.

For donors who give significant amounts to charity, these changes could make it especially important to think strategically about how, when, and where you give.

Businesses face a new giving threshold.

Charitable giving through a business is changing, too.

Beginning in 2026, corporations will only be able to deduct charitable contributions if their total charitable giving reaches at least 1% of taxable income.

The existing deduction limit remains at 10% of taxable income, and businesses can carry forward unused deductions for up to five years.

If your company is considering a large charitable gift, it may be worth reviewing your giving plans prior to making that contribution.

So, what should you do now?

There isn’t one right giving strategy for everyone. The best approach will depend on your income, tax situation, charitable goals, and the types of gifts you make.

If you regularly give to GGICF, are considering a larger charitable gift, use a DAF, or give through your business, now is a good time to talk with your accountant or qualified tax attorney about how the 2026 changes could affect you.

At GGICF, we’re here to help you think through the charitable side of your goals and connect you with resources that can help you make informed decisions.

The tax rules may be changing, but one thing remains the same: thoughtful giving can make a lasting difference in Hall County.