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Important Information about the OBBBA

As we look ahead to 2026, upcoming provisions of the One Big Beautiful Bill Act (OBBBA) are expected to bring notable changes to the philanthropic landscape beginning January 1, 2026. These changes may influence how you think about your charitable giving to Wilmington Friends School, especially if you use a donor-advised fund (DAF) or are considering a larger or planned gift.

Below, we’ve summarized several key updates to the tax code, along with general year-end giving guidance and thoughtful strategies you may wish to discuss with your financial advisor. While we are not tax professionals, we are committed to helping you work with your advisors to ensure your philanthropy continues to support the values and priorities that matter most to you — including your generosity to WFS.

Important Changes to Know
  • Standard deduction increases: In 2025, the standard deduction rises to $15,750 (single) and $31,500 (married). In 2026, it increases again to $16,550 and $33,100. Because more taxpayers may no longer itemize, some individuals may consider “bunching” charitable contributions or using a DAF to maximize their deductions.
  • Taxpayers age 65+ (or blind) may also claim an additional $6,000 deduction, though this phases out at higher income levels.
  • New deduction for non-itemizers: Beginning in 2026, taxpayers who do not itemize may still deduct up to $1,000 (single) or $2,000 (married) in direct gifts to public charities. (NOTE: This does not apply to contributions to donor-advised funds.)
  • Appreciated assets remain a strong option: Gifting appreciated stock or real estate will continue to offer a full deduction and may be especially valuable for donors who do not itemize.
Changes Affecting Larger Gifts
  • 60% of income limit remains: Cash gifts to public charities remain deductible up to 60% of adjusted gross income (AGI). Combining cash with appreciated assets can remain an effective strategy.
  • New 0.5% “floor”: Starting in 2026, only the portion of charitable gifts that exceeds 0.5% of your AGI will be deductible. Unused deductions may be carried forward for up to five years.
  • Cap on tax benefit: The tax value of charitable deductions will be capped at the savings of a 35% tax bracket, even if a donor is in a higher bracket.
The Bottom Line

If you are considering making a larger gift, completing an outstanding pledge, or contributing to a donor-advised fund, you may want to do so before December 31, 2025, when new limits and rules take effect.
 
We encourage you to speak with your tax advisor about how these changes may affect your giving plans. If you would like to discuss how your philanthropy can continue to support Wilmington Friends School — whether through the Annual Fund, capital priorities, or planned giving — we would be glad to help.

Thank you for your continued generosity and for all you do to strengthen the WFS community.


    
101 School Road, Wilmington, DE 19803
302.576.2900   |   info@wilmingtonfriends.org
Preschool - 12th Grade
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Wilmington Friends School admits students of any race, color, gender, national and ethnic origin to all the rights, privileges, programs, and activities generally accorded or made available to students of these schools. Wilmington Friends School does not discriminate on the basis of race, color, gender, national and ethnic origin in administration of their educational policies, admissions policies, scholarship and loan programs, and athletic and other school administered programs.