OBBBA Charitable Giving Tax Strategy: Bigger Gifts = Bigger Breaks

Charitable giving has always been good for business, but under the new OBBBA charitable giving tax strategy, it’s now a powerful way to cut your tax bill. The law requires businesses to give at least 1% of taxable income before deductions start to count—but once you cross that threshold, every extra dollar you give unlocks real savings.

The OBBBA Charitable Giving Tax Strategy: The 1% Rule for Businesses

Here’s how it works: For a business making $1,000,000, the first $10,000 given doesn’t count toward deductions. But every dollar after that is deductible. (See the IRS guidance on charitable contributions for general rules.)

• If you give $50,000 → $40,000 is deductible → saves you $8,400 in taxes.
• If you give $100,000 → $90,000 is deductible → saves you $18,900.

That’s cash back to you—just for planning smarter. And it only grows with larger gifts.

Why Preplanning Beats December Panic ⏰

Too many business owners wait until year-end to donate, when cash flow is tight and deadlines are looming. Preplanning your charitable giving as part of your OBBBA tax strategy lets you:

• Smooth out cash flow
• Budget your giving strategically
• Lock in deductions early

👉 Bottom line: Don’t wait until December. Use charitable giving as a proactive strategy that impacts your community—and slashes your tax bill.

If you’re ready to design a giving plan that makes your taxes work for you, schedule a free tax strategy session. This is just one move that will help you come out ahead in 2025 and beyond.

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