Up Front: The OBBBA -What Donors & Nonprofits Need to Know

The One Big Beautiful Bill Act (OBBBA), passed this summer, will shape both charitable giving and nonprofit funding on the Peninsula. Here’s what it means from two perspectives.

For Donors
The OBBBA permanently raises the standard deduction ($15,750 for individuals, $31,500 for couples), meaning fewer taxpayers will itemize charitable gifts. Beginning in 2026, non-

itemizers can claim up to $1,000 ($2,000 for married couples) in charitable deductions. However, individuals of higher net worth who are generous with their resources will continue to itemize their deductions but their rates will have caps. The hope is that these provisions will encourage younger families and first-time donors to begin their philanthropic journey and for individuals to include philanthropic giving in their estate pans. The OBBBA makes permanent the estate tax exemptions increase put in place in 2017, and in fact elevates that exemption further. 

For Nonprofits
Alongside these tax provisions, the OBBBA puts forward federal spending reductions of $1.2 trillion over the next decade, with the most significant changes affecting housing, healthcare, food assistance, and education. Locally, this likely means more of our neighbors across the Peninsula will turn to nonprofits for help and many of those organizations themselves will be affected by the federal budget changes and are already stretching to serve vulnerable residents. In turn, the nonprofits will lean on local and state governments as well as the private sector to help them do more for more people. 
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The Path Forward
As federal support pulls back, local philanthropy will be asked to step up. This is a pivotal moment for regional donors, foundations, and business leaders to fill urgent gaps, amplify effective nonprofits, and champion our community’s values. With strategic giving and collective leadership, we can uphold our vision of a Peninsula community "where no one is left behind"*.

*This language has been recently used by the Peninsula Chamber and the United Way of the Virginia Peninsula in publications and we join them in this commitment.​​

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