The One Big Beautiful Bill Act was signed into law this month. This federal statute addressed and changed several spending policies and tax laws, including a few tax laws that will impact charities and charitable giving. In this article we will discuss these OBBBA policy changes, the expected outcomes, and how you can help. 

Non-Itemizers can Claim Charitable Deductions! 

In the past, taxpayers could only claim charitable deductions if they itemized deductions. Now, with the passing of the OBBBA, non-itemizers (taxpayers who take the standard deduction) can also claim charitable deductions!  

• Single filers can claim up to $1,000 in charitable deductions  

• Taxpayers who are married filing jointly can claim up to $2,000 

Our hope is that this will motivate and enable lots of people to donate for the first time/give more to causes they care about! 

If you’re a non-itemizer, this is your sign to take advantage of this opportunity and start considering which charities/causes you want to support this year. 

Changes Expected to Decrease Donations 

The rest of the changes are expected to reduce donations. Let’s look at the two main tax laws that we are concerned about. 

• 1% Floor for Corporate Donations: Corporations may only take a charitable deduction if their contributions exceed 1% of their taxable income.  
  • This is expected to discourage smaller corporate donations and will likely discourage smaller, less profitable businesses from donating at all. 
  • Corporations may choose to combine multiple years’ worth of donations into a single year to exceed the 1% floor. This will reduce regular donations. 

• 35% Cap on Deductions for High Earners: For taxpayers in the 37% bracket, the OBBBA caps charitable deductions at 35% instead of the previous 37%.  
  • With their lower effective tax value of large charitable donations, wealthy donors may be less likely to donate. 

Reduction of Medicaid & SNAP Benefits could lead to Higher Demand for Services 

Charities like Pinnacle Resource Center that provide food assistance and other services to people who are struggling, and often vulnerable populations, will likely see an increased demand for their services.  

Why Give to Pinnacle Resource Center? 

At Pinnacle Resource Center our mission is to offer a hand up, not a handout. Your donation provides struggling individuals and families with the tools and resources to get back on their feet and eventually thrive independently. Your donation to PRC has the power to change the trajectory of someone’s life. 

The True Spirit of Generosity 

The One Big Beautiful Bill Act means that charitable giving will be more financially advantageous for some and less advantageous for others going forward.  

We recognize that everyone’s situation is different, but in the wake of these changes we encourage you to look past the tax implications and reflect on the true importance of charitable giving! 

Beyond Monetary Donations: Other Ways to Support Our Mission 

If you want to support PRC but can’t do so monetarily, there are other ways you can help! 

Volunteer 

Your time is valuable. 

These are a few of the impactful ways you can contribute to our mission as a volunteer. 

• Meal Service: A nutritious meal prepared with love can make a big difference in someone’s day. 

• Food Pantry: Work with us to eliminate hunger in our community. 

• Back on the Rack: Help us provide our community with quality, affordable clothing and household goods. All proceeds support PRC. 

• Life Skills Training: Give someone a “hand up” by sharing useful skills and knowledge. 

We need your help! Contact us to learn more about volunteer opportunities. 

Donate Goods 

Is it time to clean out your closet or pantry? Can you grab one extra item at the grocery store? Every item you donate makes a difference. 

• Resident Living Needs: cleaning supplies, toiletries, hygiene items, toilet paper, paper towels, non-perishable food items 

• Back on the Rack Thrift Store Needs: Clothing & Accessories, Furniture, Household Items, Entertainment/Electronics (100% of proceeds go directly toward client services) 

Support Pinnacle Resource Center 

Regardless of changing political policies and personal opinions, one thing remains the same—our community needs Pinnacle Resource Center. We offer crucial services that help people survive tough times, help them overcome obstacles, secure employment, and find good jobs, so they can thrive independently. Our work changes lives and your support makes it possible. 

Visit PinnacleResourceCenter.org to learn more.