New Year, New Changes

Mary Sparacello msparace@tulane.edu

How the One, Big, Beautiful Bill Act Impacts Your Philanthropy

The One, Big, Beautiful Bill Act (OBBB) is already making an impact on the philanthropic landscape, but with preparation and knowledge, Tulanians have the opportunity to make the most of their giving this year. The OBBB preserves many longstanding incentives for donors and introduces a mix of new opportunities and considerations for Tulane supporters to be aware of as they plan their giving.

One of the most significant enhancements is the introduction of a tax benefit for non-itemizers. Taxpayers who take the standard deduction this year may deduct up to $1,000 (or $2,000 for married couples) in charitable gifts. For many Tulane donors, this means that their contributions can generate real tax savings while supporting the university. However, donors should note that gifts must be made directly to Tulane and not through a donor-advised fund in order to qualify.

For those who do itemize, there are two important changes. First, starting this year, only contributions above 0.5 percent of your adjusted gross income will count toward the charitable deduction. Second, the tax value of a deduction for top-bracket earners will decrease slightly, from 37 cents per dollar to 35 cents.

The current standard deduction remains high, at $16,100 for single filers and $32,200 for married couples filing jointly in 2026. Those who do not itemize may still benefit from significant tax advantages if they utilize non-cash strategies such as giving appreciated stock, real estate, or, for those age 70½ and older, making qualified charitable distributions from an IRA.

The new law also maintains the 60 percent adjusted gross income limit for cash gifts. Further, it continues the historically high federal estate and gift tax exemption of $15 million per individual and $30 million per married couple filing jointly.

Though the changes of the OBBB may impact many individuals and families across the nation, incorporating Tulane into your financial planning remains an outstanding opportunity to make a meaningful difference for a remarkable institution.

Contact the Office of Gift Planning at 504-247-1800 or giftplanning@tulane.edu to learn more about the best ways for you to build your Tulane legacy.