What the New Tax Law Means for Your Charitable Giving

Understanding H.R. 1: The “One Big Beautiful Bill” and Its Impact on Local Philanthropy

A major new tax law, H.R. 1, known as the “One Big Beautiful Bill,” was signed into law on July 4, 2025. While it introduces new benefits for small-dollar donors, it also brings important changes that may affect how individuals and families across Gallatin County approach their giving.

At One Valley Community Foundation, we are here to help you make sense of these changes and continue giving in meaningful, intentional ways.

More Opportunities for Everyday Giving

Beginning in tax year 2026, taxpayers who do not itemize will be able to deduct charitable contributions. Individuals can deduct up to $1,000, and couples filing jointly can deduct up to $2,000 in cash gifts made to qualifying public charities. (Sec. 70424)

This shift opens the door for more people to receive a direct tax benefit for supporting local nonprofits and causes they care about.

What this means for you:
If you do not typically itemize your taxes, this is good news. Your gifts to organizations serving Gallatin County may now help lower your tax bill, all while supporting the community you call home.

New Considerations for Larger Gifts

While smaller gifts are getting new visibility, the law also adds some limits for larger donations made by those who itemize:

  • Only the portion of your charitable contributions that exceeds 0.5% of your adjusted gross income (AGI) will be deductible. (Sec. 70425)

  • Starting in 2026, the tax benefit for itemized deductions will be slightly reduced for those in the top tax bracket, capping the value of deductions at $0.35 per dollar instead of $0.37. (Sec. 70111)

What this means for you:
If you already have a fund with us or are considering opening a donor advised fund, now may be a good time to connect with our team. Making a larger gift before these changes take effect in 2026 could help you maximize your tax benefit while continuing to support the causes you care about—on your timeline and with confidence.

Changes to Corporate Giving

Businesses must now contribute more than 1% of their taxable income before they can deduct charitable gifts. While the overall cap of 10% still applies, smaller corporate donations that fall below the new threshold will no longer be deductible. (Sec. 70426)

What this means for you:
If you or your family owns a local business, we can help you explore a corporate advised fund (CAF) or other giving vehicles that align with your philanthropic goals. A CAF allows you to bundle multiple years of giving into one larger contribution, helping you meet the new 1% threshold and receive a deduction in the year the contribution is made. You can then take your time recommending grants to nonprofits you care about, year over year.

Count on One Valley for Support

We know these changes may raise questions. That is why our team is here to support you every step of the way. Whether you are planning a one-time gift, considering local fundholding options, thinking about long-term giving, or already have a fund with us, we offer:

  • Personalized guidance based on your goals and financial situation

  • Options to open or contribute to a donor advised fund or corporate advised fund

  • Legacy giving and estate planning support

  • Updates and insights as laws evolve

Our mission is to help you give with confidence and make a lasting impact in Gallatin County.

Let’s Talk

Whether you are a long-time donor, a current fundholder, or someone exploring new ways to give, we would love to hear from you.

Email us at jill@onevalley.org
Call us at 406.587.6262 x20
Learn more at onevalley.org/giving

Thank you for all you do to strengthen our community through generosity.

The charitable landscape is evolving, and policy changes like H.R. 1 are just the beginning. We encourage donors and fundholders to follow the Council on Foundations for ongoing updates, expert insights, and advocacy news related to philanthropy and public policy. As your local partner, One Valley will also continue to share relevant updates and guidance to help you make informed giving decisions.

Anna Burkholder