In the News | Accounting Today
What nonprofits and their accountants need to know about the OBBBA
Sept. 17, 2025 · Authored by Larry Mohr
The One Big Beautiful Bill Act introduces new rules affecting charitable giving and nonprofit operations:
- Cash deduction for non-itemizers: Up to $1,000/$2,000 (single/married)
- Itemizer contribution limits: 0.5% floor may reduce benefits for high-income donors
- Excise tax changes for private colleges: Tiered rates and higher student thresholds
- New scholarship tax credit: Up to $1,700 for qualifying donations (starting 2027)
- Corporate and employee impacts: 1% floor on corporate contributions; overtime and excess compensation reporting updates
These changes create both challenges and opportunities for nonprofits to engage donors strategically. As Baker Tilly’s Larry Mohr shared with Accounting Today, understanding these provisions is critical for maximizing tax benefits and planning for future giving.
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