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