Richey May’s Inside the One Big Beautiful Bill Act video series is designed to help mortgage lenders and other industry-affiliated businesses understand what this sweeping legislation means in practice, not just in theory. Hosted by Kenny Burch, Director, Mortgage Banking Tax, the series features focused conversations with experts from Richey May’s Mortgage Banking Tax team, each examining a specific provision of the Act and its implications.
In this episode, Kenny is joined by Starsa Hermanson, Tax Manager, to discuss changes to charitable contribution deductions for individuals under the One Big Beautiful Bill Act. While charitable giving remains an important planning tool, updates to both the deductibility thresholds and the standard deduction rules may affect when and how taxpayers receive a tax benefit.
Key Takeaways from the Episode
- A new floor now applies for itemizers: Beginning in 2026, charitable contributions are deductible only to the extent they exceed a small percentage of a taxpayer’s adjusted gross income, limiting the benefit of smaller annual gifts.
- AGI-based ceilings remain in place: Existing percentage limits tied to income still apply, meaning large contributions may continue to be subject to annual caps.
- The 60% cash contribution limit is now permanent: The Act preserves the higher ceiling for cash donations to public charities, providing greater long-term predictability for planning.
- Non-itemizers gain a new benefit: Individuals taking the standard deduction may now claim a limited charitable deduction for qualifying cash contributions.
- Overall itemized deduction limitations may apply: Broader Schedule A limitations introduced under the Act can further affect the ultimate usability of charitable deductions.
Taken together, these changes shift how individuals should think about charitable giving, particularly in years when income fluctuates or when deciding whether to itemize.
Watch the full episode below to hear Kenny and Starsa walk through how charitable deductions for individuals are changing and what taxpayers should consider for 2026.
Continue the Conversation
This episode is part of the Inside the One Big Beautiful Bill Act series, which explores additional provisions shaping the mortgage banking tax landscape. Visit the series page to watch other episodes and stay current as new guidance continues to emerge.
If you have questions about charitable contribution deductions or any aspect of the One Big Beautiful Bill Act that may impact your organization, the Richey May Mortgage Banking Tax team is available to help.
