The One Big Beautiful Bill signed by President Donald Trump in July 2025 is more than just a big change to taxes that would affect your Gifting Tuesday gifts.
This news appears on Giving Tuesday, November 29, 2025, when millions of people give donations to charities following Black Friday sales. There are new tax breaks in the bill, but they begin in 2026, hence, 2025 donations are subject to the old rules.
What is the Big Beautiful Bill?
To fulfill his tax and spending promises, Trump signed the One Big Beautiful Bill on July 4, 2025. It incorporates tax cuts of $4.5 trillion, and entails making first-term rates permanent and providing breaks to tips, overtime, and auto loans. The legislation increases military expenditures, frontier upkeep, and child tax credits to 2200 dollars.
New Tax Break for Charity Gifts
A key part of the bill adds a special deduction for charitable donations starting in 2026. Non-itemizers, most taxpayers taking the standard deduction, can now claim up to $1,000 if single or $2,000 for couples filing jointly.
This applies only to cash gifts to qualified charities, not political groups or crowdfunding. Around 90% of filers could benefit, per tax experts.
How It Hits Giving Tuesday Now
Giving Tuesday falls in 2025, so the new break does not apply yet. To deduct donations today, you must itemize on your tax return and beat the standard deduction.
High earners who itemize might “bunch” gifts into 2025 using donor-advised funds for bigger breaks before 2026 rules kick in. Get receipts for gifts over $250 and check IRS tools for qualified groups.
Who Wins and Who Loses?
Middle-class families gain from child credits and tip deductions, but low-income folks may lose out on cuts to Medicaid and food aid. Wealthy households see up to $12,000 more yearly.
For Giving Tuesday, non-itemizers get no direct help this year, but plan ahead for 2026 savings. Businesses get full write-offs on equipment, aiding economic growth.
Tips for Smart Donating
- Donate cash to IRS-approved charities for the best shot at deductions.
- Use donor-advised funds to bunch gifts and maximize 2025 itemized breaks.
- Track all receipts; the IRS requires proof for large amounts.
- Wait for 2026. If you take the standard deduction, your gifts could save $1,000-$2,000.
This bill aims to spark a “Golden Age” with lower taxes, but time your Giving Tuesday moves wisely. Experts say to check your filing status before giving.
What Experts Say
Tax pros warn: “Make that donation in 2025 rather than 2026” for top earners. The bill adds endowment taxes on colleges and SALT cap relief to $40,000 temporarily, but charity floors are hit hardest. Non-rich donors gain most from the $1,000/$2,000 perk.
Charity groups hope middle-class boosts offset rich-donor dips. With deficits up $3.4 trillion over 10 years, these changes aim to balance cuts and growth. Talk to a tax advisor for your case.