UD’s Gift Planning Team is proud to share charitable giving resources like this to help all our Blue Hens and friends make the most of their money. If you have questions or want to discuss gift planning options, reach out at 302-831-3822 or giftplanning@udel.edu.
 

Recent federal tax changes under the One Big Beautiful Bill Act are reshaping the philanthropic and estate-planning landscape, creating new considerations and meaningful opportunities for charitable giving. For those who care deeply about making an impact, understanding these provisions can help ensure that generosity and legacy remain at the heart of your plans.
 

What These Changes Mean for Charitable Giving
 

Under the new law, taxpayers who itemize deductions must now give at least 0.5% of their adjusted gross income (AGI) before receiving a tax benefit for charitable contributions. For example, an individual with $200,000 in AGI would receive a tax benefit only on charitable gifts exceeding $1,000. While this change may influence how some donors structure their annual giving, it also encourages thoughtful, intentional philanthropy aligned with personal values.

At the same time, the Act introduces an above-the-line charitable deduction, allowing taxpayers who do not itemize to deduct charitable gifts of up to $1,000 for single filers and $2,000 for married couples. For someone in the 24% tax bracket, a $1,000 gift could result in approximately $240 in tax savings—making charitable giving more accessible and rewarding for a broader group of donors.
 

Estate and Gift Planning Opportunities
 

The Act also significantly increases the federal estate, gift and generation-skipping transfer (GST) tax exemption to $15 million per individual (or $30 million per married couple). This expanded exemption provides families with greater flexibility to plan their estates, care for loved ones and support charitable causes in meaningful ways.

The annual gift tax exclusion remains at $19,000 per person, allowing individuals to continue making yearly tax-efficient gifts to family members or charitable organizations as part of a long-term giving strategy.
 

Turning Policy into Purpose
 

These changes present an opportunity to revisit your philanthropic and estate plans and consider how charitable giving can play a role during your lifetime and as part of your legacy. Whether you are making annual gifts, exploring tax-efficient strategies or thinking about the impact you want to leave behind, thoughtful planning can help align your financial goals with the causes you care about most.
 

Take the Next Step
 

The University of Delaware’s development team is available to help you understand how these changes may affect your charitable plans. Contact us at 302-833-3822 or giftplanning@udel.edu to schedule a confidential discussion with a team member.

The information provided is offered solely as general education information and is not intended to be a substitute for professional estate planning or legal advice. Because the laws of each state vary and your own circumstances are unique, you should seek the advice of your own attorney, tax advisor and/or financial planner before deciding on a course of action and in creating your estate plan.