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The was signed into law on July 4, 2025, introducing a range of provisions that will affect how individuals, companies, and workplaces support the causes they care about.

While much remains uncertain about how this legislation will influence individual and corporate giving, we anticipate that its provisions will introduce additional layers of complexity and, overall, negatively impact the charitable giving sector—furthering the decline that began with the implementation of the .

However, there are some glimmers of hope for workplace giving campaign participation and nonprofits who benefit from those donors.

Workplace giving programs—those that allow employees to donate to causes directly from their paychecks—have long been a cornerstone of charitable engagement. Yet in recent years, participation has plateaued.

The Big Beautiful Bill could remove barriers for both employees and employers, making workplace giving more accessible, rewarding, and impactful.

1. For Donors:
   1. When the 2017 Tax Cuts and Jobs Act nearly doubled the standard deduction, the number of itemizers fell sharply, leading to an in giving per year. This new bill could reverse that trend by making it easier for everyday donors to experience a direct financial benefit for their generosity.
   1. The new law includes a provision, effective after 2025, allowing non-itemizers to take a charitable deduction of $1,000 for single filers and $2,000 for taxpayers who are married and filing jointly.
   1. This adds some motivation for donors to participate in their company’s workplace giving program whether they itemize or not.

• For Nonprofits:
  • The passage of the Big Beautiful Bill could increase participation in charitable giving, particularly among younger and middle-income donors who may feel that their smaller contributions don’t make a difference. With the new tax incentive not requiring donors to itemize taxes, this widens the pool of potential donors, particularly among donors who take advantage of recurring payroll deduction to make larger size donations.
  • This is important for nonprofits to consider as they look to fill the gaps from major gifts. Big donors who itemize now have limits – the first 0.5% of AGI is not deductible and for high earners, the tax benefit is capped at 35% of donations.�� This will have a much more significant impact on nonprofits who rely heavily on major gifts, so looking at workplace giving as a way to diversify fundraising is more important than ever.��

• For Employers:
  • While this bill has introduced some complexity and new requirements for companies to qualify for charitable deductions, one thing hasn’t changed: employers can still leverage employee matching gift programs as a way to support nonprofits and engage employees.
  • Matching gift programs, especially those facilitated with partners like ������Ƶ’s Charities, remain a very cost-efficient and effective way for companies to support charities. A partner like ������Ƶ’s Charities can provide all-in-one support, including providing an online solution to facilitate giving and automate matching gifts and distributing donations and matching funds to vetted charities.

Many factors motivate charitable giving, and philanthropy is an important priority for many families and employers whether they have a tax incentive or not. Nonprofits need us more than ever. Regardless of your take on this new bill and how it will impact the philanthropic sector, one thing this bill does get right is removing barriers for both employees and employers, making workplace giving more accessible, rewarding, and impactful.