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By Harry Lynch
Whether you think the One Big Beautiful Bill Act passed in July 2025 was beautiful — or an ugly legislative mistake — it’s probably not the hottest topic at your nonprofit’s water cooler.
If you are a fundraiser, maybe it should be. The changes to tax laws in the 2025 legislation provide fundraisers across the sector significant opportunities to boost revenue during the all-important year-end giving season.
First and foremost: Donors who do not itemize their taxes can receive a federal tax deduction for charitable giving for the first time in years.
Beginning in 2026, taxpayers who take the standard deduction may deduct up to $1,000 in qualifying cash charitable contributions for individuals and $2,000 for married couples filing jointly. Contributions to donor-advised funds do not qualify for this new deduction.
Because roughly 90% of taxpayers now take the standard deduction, this potentially gives millions of donors a tax benefit for charitable gifts that they did not have before — a significant fundraising opportunity that is receiving far too little attention.
We all know that donors give because they believe in a mission, not because of tax benefits. But for many donors, the new deduction provides one additional reason to give, give more, or act before year-end.
The message to donors and potential donors does not need to be complicated. At its simplest:
For the first time in years, your charitable gift may qualify for a federal tax deduction even if you don’t itemize.
Or, keeping the mission more prominent:
Your gift makes a difference for [MISSION] — and this year it may do a little more for you, too. A new federal tax deduction means many people who don’t itemize can now deduct qualifying charitable gifts.
These are starting points — not prescribed copy. The language should be integrated into your organization’s voice, audience and larger creative strategy.
Looking Beyond Annual Giving
The non-itemizer deduction might be the most straightforward opportunity, but it certainly isn’t the only one. Other changes in the tax law affect people who itemize and higher-income donors and may create additional opportunities in mid-level and major giving — including conversations about the timing and structure of charitable gifts.
For instance, beginning in 2026, a new 0.5% of adjusted gross income floor applies to charitable deductions for taxpayers who itemize. That might make strategies such as bunching several years of charitable contributions into a single year more attractive for some donors. Donor-advised funds can be one way of doing that while allowing donors to distribute their charitable support over time.
Other provisions affect the value of deductions for some higher-income taxpayers. And beginning in 2025, a temporary increase in the cap on state and local tax (SALT) deductions might make itemizing more relevant again for some donors, particularly in high-tax states.
For mid-level and major donors, the changing tax environment also provides an opportunity to talk more broadly about tax-smart giving, including donor-advised funds, bunching contributions and gifts of appreciated assets such as stock.
Most of these provisions don’t belong in broad annual-giving appeals. And fundraisers shouldn’t be dispensing tax advice. But they should understand the changes well enough to recognize opportunities and begin appropriate conversations with donors.
What Should We Be Doing Now?
Every nonprofit team should be looking at its fall and year-end fundraising now through a tax-strategy lens. That doesn’t mean simply adding a “tax-deductible” message to every appeal.
* Don’t have one “tax message.” Match the tax opportunity to the donor.
For the broad annual-giving audience, the new deduction for non-itemizers might be the biggest opportunity. For donors who already itemize, the new 0.5% AGI floor might make the timing and concentration of gifts more important. For mid-level and major donors, there may be opportunities to discuss bunching gifts, donor-advised funds, appreciated assets and other tax-smart approaches. And in high-tax states, the expanded SALT deduction may make itemizing relevant to more donors.
Right now every fundraiser should consider:
* Reviewing upcoming fall and year-end campaigns.
Look across direct mail, email, websites, donation forms, paid and organic social, digital advertising and other communications for appropriate opportunities to incorporate tax messaging where it can strengthen the fundraising case — not overwhelm it.
* Segmenting the message.
The new non-itemizer deduction might be broadly relevant to annual-giving donors, while different tax considerations might be more appropriate for mid-level, major and higher-income donors. Don’t assume one message fits the entire donor file.
* Thinking beyond the appeal.
A P.S., sidebar, buck slip, reply-slip callout, envelope message, email callout or donation-form message may be enough for some audiences. For others, a dedicated email, year-end tax-giving piece or more individualized communication may make sense.
* Engaging mid-level and major donors differently. Changes affecting itemizers create opportunities for conversations about the timing and structure of charitable gifts, including bunching contributions, donor-advised funds and appreciated assets. Fundraisers don’t need to become tax advisers, but they should understand the opportunities well enough to start the conversation — and encourage donors to consult their own tax professionals.
The important point is: Don’t wait.
The tax benefit isn’t why donors care about our nonprofits’ missions. But in 2026, millions of donors have a new financial incentive to give — and other donors have new reasons to think strategically about how and when they give.
We should be taking advantage of all of those opportunities this fall and year-end.
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Harry Lynch is CEO of Sanky Communications in New York City. His email is hlynch@sankyinc.com
