What the One Big Beautiful Bill Act Means for Fundraising: Preparing for 2025 and Beyond
- Shaff Fundraising Group
- Sep 8, 2025
- 3 min read
Authors: Shaff Fundraising Group
As the nonprofit and higher education fundraising landscape evolves, tax policy often plays a pivotal role in shaping donor behavior. We saw this in 2020 with the passage of the CARES Act, which increased small-dollar donors to broaden participation. The recently passed One Big Beautiful Bill Act (OBBBA), which will go into effect in 2026, is no exception. This legislation will introduce new rules around charitable deductions that present both challenges and opportunities for fundraisers.
At Shaff Fundraising Group (SFG), we’re advising our clients to act now, well before these provisions take effect, so they can meet donors where they are at, help maximize giving in 2025, and build strong momentum and a heightened qualified pipeline for the years ahead.
“Tax policy often drives donor behavior, and the One Big Beautiful Bill Act is no exception. Institutions that get ahead of these changes will not only capture more giving in 2025, but also set themselves up to thrive with a broader annual giving base in 2026.”
— Brittany Shaff, Founder & CEO, Shaff Fundraising Group
Key Changes Under One Big Beautiful Bill Act
Here’s what fundraisers need to know:
Starting in 2026, taxpayers who do not itemize will be able to claim a charitable deduction of:
$1,000 for single filers
$2,000 for married couples filing jointly
Donor-Advised Funds (DAFs) are excluded from this provision.
For individual donors who itemize their giving, a “giving floor” of 0.5% will be introduced, which can alter the psychology of mid-level donors and change how nonprofits approach solicitations.
Why 2025 Is the Year to Maximize Giving
While these changes are ultimately positive for annual giving programs, they also create an incentive for mid-level donors to make larger itemized gifts before the new floor is introduced in 2026.
That means 2025 is a critical year:
Donors who itemize will want to maximize their deductions before the new rules take effect.
Institutions have a unique opportunity to launch targeted campaigns that highlight both impact and urgency.
At SFG, we see this as an ideal chance for clients to:
Develop segmented End-of-Calendar-Year (EOCY) 2025 campaigns
Use messaging that connects generosity with urgency, such as “Maximize your gift. Maximize your impact at [Institution Name].”
Educate donors through email, digital, and social channels about how their giving behavior may change under OBBBA.
Strategic Recommendations for Higher Ed and Nonprofits
Segment Your Audiences
Focus specifically on mid-level donors who are most likely to itemize and who may adjust their giving habits in 2025.
“When we model donor data, we see mid-level donors as the group most likely to shift behavior before the new giving floor takes effect. That’s why segmentation and data-informed targeting will be critical for end-of-year campaigns in 2025.”
— Julie Knight, Ph.D., Head of Analytics & Reporting, Shaff Fundraising Group
Educate Donors Proactively
Donors often look to their alma mater or favorite nonprofit for guidance on how giving aligns with tax changes. By educating them early, you strengthen trust and urgency.
Align Messaging Across Channels
Create a unified theme across email, social, and print campaigns. Reinforce urgency through consistent calls-to-action.
Look Ahead to 2026
While 2025 presents a “last chance” opportunity for some donors, 2026 will bring expanded participation in annual giving. Institutions should plan creative campaigns to welcome this broadened base of support.
Conclusion
The OBBBA will shift donor behavior, but with careful planning, higher ed institutions and nonprofits can position themselves to capitalize on urgency in 2025 and embrace broader participation in 2026.
At Shaff Fundraising Group, we’re already helping clients adapt strategies to these changes. If you’d like to discuss how your institution can prepare Schedule a Strategy Call with the Shaff Fundraising Group team.
Interested in participating in an upcoming SFG blog? Let us know!
Shaff Fundraising Group is a consulting firm specializing in fundraising, marketing, and analytics. We take pride in our independent approach, free from technology affiliations with SaaS and other companies. This allows us to provide objective, solutions-oriented support to our client partners and the broader fundraising and engagement community.
