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ARTICLE · 23 JULY 2025

OBBBA Provisions Impact Charitable Contribution Deductions

Lowenstein Sandler LLP
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On July 4, President Donald Trump signed into law the One Big Beautiful Bill Act (H.R. 1) (OBBBA). While OBBBA contains various provisions that impact high-net-worth individuals, this alert focuses on OBBBA provisions...

United StatesTax
Beth Shapiro Kaufman
Beth Shapiro Kaufman
Warren K. Racusin
Warren K. Racusin
Elinor Ramey
Elinor Ramey
Michael P. Vito
Michael P. Vito
Michael N. Gooen
Michael N. Gooen
Kenneth J Slutsky
Kenneth J Slutsky
Tracy A. Snow
Tracy A. Snow
Meghan M. Federman
Meghan M. Federman
Bridget Harris
Bridget Harris
+3 more

On July 4, President Donald Trump signed into law the One Big Beautiful Bill Act (H.R. 1) (OBBBA). While OBBBA contains various provisions that impact high-net-worth individuals, this alert focuses on OBBBA provisions relating to charitable contribution deductions.

OBBBA makes four key changes to an individual's ability to deduct charitable contributions on their income tax returns.

1. Increased Tax Deduction for Non-Itemizers

Under the Coronavirus Aid, Relief, and Economic Security (CARES) Act (effective in 2020 and 2021), individuals who did not itemize could deduct $300 ($600 for joint returns) of cash contributions to certain charitable organizations. That provision was allowed to expire. OBBBA brings back this deduction and increases the amount to $1,000 for individuals and $2,000 for married persons filing jointly. The normal substantiation rules apply, and only contributions to public charities that are neither donor-advised funds nor supporting

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