The One Big Beautiful Bill Act (2025 Reconciliation Bill) was signed into law by President Trump on July 4, 2025. Included in the OBBBA are several provisions that impact charitable giving and nonprofit organizations. As your partner in philanthropy, the Jewish Community Foundation is here to help you navigate charitable planning and respond to changing community needs over the months and years ahead. Your giving matters now more than ever. Scroll down to read about the tax implications, impact on our communal safety-net, and how you can make a difference.
Tax Implications
Standard deduction goes higher
What’s in the OBBBA?
The new law makes permanent the standard deduction increases under the Tax Cuts and Jobs Act of 2017 (TCJA), increasing the standard deduction for 2025 to $15,750 for single filers and $31,500 for taxpayers who are married and filing jointly. The new law also expands the “bonus” deduction for taxpayers 65 and older through 2028, based on filing status and Modified Adjusted Gross Income.
Under the new law, individuals who itemize may take charitable deductions only to the extent the charitable deductions exceed 0.5% of adjusted gross income (AGI) and only on the portion of contributions in excess of 0.5% of AGI. Furthermore, taxpayers in the top bracket can only claim a 35% tax deduction for charitable gifts instead of the full 37% that would otherwise apply to their income tax rate. Note also that the final bill extended the 60% of AGI contribution limitation for cash gifts made to certain qualifying charities.
What does this mean for charitable giving?
With even fewer taxpayers eligible to itemize, and deductions capped for high-income earners, we’re likely to see a continuation of the chilling effect on charitable giving that occurred in the wake of the TCJA. For some donors, it may make sense to accelerate charitable giving into Donor Advised Funds during the remainder of 2025. Please reach out to JCF and consult your financial advisors to discuss this strategy. For example, the bunching strategy may be advantageous at this time, especially with markets at their current levels.
What can you do?
If you regularly support charities, there are many good reasons to continue to do so, whether or not you’re benefiting from a tax deduction for those gifts. Our community needs you, now more than ever. We know that philanthropy is an important value for many families regardless of tax incentives. As always, we encourage you to consult your tax advisors to assess how these changes may impact your personal financial situation.
Deduction for non-itemizers
What’s in the OBBBA?
The new law includes a provision, effective after 2025, allowing non-itemizers to take a charitable deduction of $1,000 for single filers and $2,000 for taxpayers who are married and filing jointly. As has been the case in the past, gifts to Donor Advised Funds are not eligible.
What does this mean for charitable giving?
After the TCJA went into effect, the number of households in the U.S. that itemized deductions dropped to under 10%. Over the last 20 years, the number of U.S. adults who give to charity in any given year has dropped from nearly two-thirds to less than half, according to some studies. Against this backdrop, the OBBBA’s deduction for non-itemizers has the potential to re-motivate charitable giving among a significant number of households.
What can you do?
Now is an important time to take a serious look at your charitable giving plans to support the causes you care about over the years ahead. Please reach out to Suzanne Galblum Dicken, JCF director of philanthropy, to learn how we can help you make the most of the new tax laws.
No sunsetting estate tax exemption
What’s in the OBBBA?
The new law makes permanent the increase in the unified credit and generation-skipping transfer tax exemption threshold. The 2025 exemption is $13.99 million for single filers and $27.98 million married filing jointly. In 2026, these numbers increase to $15 million and $30 million respectively.
What does this mean for charitable giving?
Purely estate tax-based incentives to give to charity continue to apply only to the ultra-wealthy, likely resulting in a continuation of the taxpayer behavior triggered by the TCJA. In other words, most people will give to charity during their lifetimes and in their estates for reasons other than a tax deduction.
What can you do?
There is no guarantee that the estate tax exemption will stay high forever. As families work with their tax and estate planning advisors, many are viewing the next two years as an important window to plan ahead. The upshot of the new law is that high net-worth taxpayers now have more time to thoughtfully consider estate planning strategies, including charitable giving.
Impact on Our Communal Safety-Net
From Angela DeWilde, Executive Director and CEO of Jewish Family Services
“The recent changes to SNAP and Medicaid benefits will directly impact many of the individuals and families we serve at JFS. While the full implications will remain unclear for many months, we do know that essential support services our community relies on are at great risk of being reduced or altered. Furthermore, the already complex and bureaucratic process to access these benefits is expected to become even more confusing, which will result in people not receiving the help they need.
At JFS, we are preparing to step up our support for individuals and families, including older adults, who may be affected. However, the uncertainty surrounding these changes makes it difficult to plan effectively, especially as the timeline and details continue to shift. We are monitoring developments closely.
We understand how unsettling this uncertainty is, especially when it touches the most basic needs of our neighbors. JFS is grateful to be part of a community that has stood together in difficult times for over a century, and we remain committed to stand with you as a source of support for our community, no matter what lies ahead.”
From Simon Abrahms, CEO of Village Shalom
"Based on local and national funding trends we know that the future includes more Village Shalom residents requiring financial assistance. By operating as effectively as possible and through careful planning, we're ensuring that residents and their families continue to benefit from evolving programs and services. Village Shalom invites donors, volunteers and community partners to join us in sustaining a vibrant, compassionate village, where local seniors thrive - with the comfort of knowing that no one has had to leave Village Shalom due to lack of funds."
Healthcare
What’s in the OBBBA?
The OBBBA cuts more than $1.2 trillion from Medicaid over 10 years, rolls back Medicaid expansion under the Affordable Care Act (ACA), and also narrows eligibility and imposes stricter work requirements.
What does this mean for local nonprofits?
Thousands in Kansas City may lose Medicaid coverage, including older adults, people with disabilities, and low-income families. Social service nonprofits may face an influx of uninsured individuals needing help accessing mental health care, addiction services, and case management (also basic medical services, prescription drugs, and home health care - even though no Jewish agency directly provides these services, many see clients whose well-being will be impacted by this loss). Schools and senior programs may see ripple effects - such as people will be less healthy, impacting their ability to learn, thrive, enjoy life, and contribute to the community - as more families experience financial instability tied to healthcare costs.
Food Assistance
What’s in the OBBBA?
The OBBBA cuts and restricts access to SNAP (Supplemental Nutrition Assistance Program), often referred to as "food stamps." It also adds more work requirements for able-bodied adults and tightens eligibility for certain immigrant and refugee households who have previously accessed food assistance.
What does this mean for local nonprofits?
Individuals and families—especially older adults and single-parent households—may lose food benefits, even if they are struggling to make ends meet. Since many children rely on SNAP benefits to qualify for free or reduced-price school meals, many may also lose their automatic eligibility for school meals. With more households facing hunger and food insecurity in our community, food pantries and kosher meal programs will likely see higher demand and possible waitlists. Refugees and recent immigrants supported by nonprofit organizations may be particularly affected.
Nursing Homes & Long-Term Care
What’s in the OBBBA?
The OBBBA reduces federal Medicaid reimbursement for nursing homes, narrows eligibility for long-term care benefits, and disincentivizes home- and community-based services for older adults and people with disabilities.
What does this mean for local nonprofits?
Medicaid funds more than 60% of long-term care nationally; cuts will hit nursing homes and in-home care services hard. Seniors relying on Medicaid for long-term care - either in facilities or at home - may face reduced access or experience wait times. And, family caregivers may bear more practical, financial, and emotional burdens, increasing demand for caregiver support services offered by nonprofit agencies.
What can you do?
The Jewish Community Foundation is working closely with our communal organizations to understand these challenges and ensure our community’s safety-net stays strong. Here are some ways you can help:
Give Now: Our communal organizations need your support now more than ever to help meet increasing needs.
- A JCF Donor Advised Fund simplifies your giving and offers tax and planning advantages. If you open a new JCF DAF, we'll match your first donation to the nonprofit of your choice, up to $1,000. Many fundholders appreciate having money set aside in their Donor Advised Funds which enables them to quickly give when needs arise.
- Maximize your charitable impact on organizations by donating appreciated stock which offers significant tax benefits.
- Consider donating to JCF's Community Legacy Fund which provides responsive grants to Jewish agencies facing urgent or evolving needs.
- JCF is in constant contact with our communal organizations and can help you identify where the greatest needs exist. Please reach out and we can connect you to nonprofits supporting those most impacted by the OBBBA.
- If you have a multi-year commitment, consider accelerating the payment to take advantage of the current tax laws.
Give Later: Create a Jewish Legacy by making a planned gift that ensures long-term support for the community — no matter what lies ahead. Learn more about how easy it is to make a planned gift to your favorite organizations.
Volunteer: Donating your time can help play a critical role in meeting this moment. Volunteering at the JFS Food Pantry, delivering meals to seniors through Kansas City Kosher Meals on Wheels, or helping support refugees at JVS are just a few ways to get involved.
If you have questions or want to talk more about the how the OBBBA could affect your philanthropy, please contact Suzanne Galblum Dicken at (913) 327-8286 or by email. We are here to help.
