The One Big Beautiful Bill Act (OBBBA) is a new federal tax law that took effect on July 4, 2025. It makes many previous tax cuts permanent and introduces new rules for charitable giving. This matters because it could affect how your donations to Boston College impact your taxes鈥攐ffering both new opportunities and important adjustments.

Key Provisions Related to Charitable Giving

  • Tax rates of 10%, 12%, 22%, 24%, 35%, and 37% are permanently extended.
  • Standard deduction is permanently extended at the higher level.
    • For 2025: $15,750 for single filers; $31,500 for married couples filing jointly.
    • Temporary increase for seniors: From 2025鈥�2028, individuals aged 65+ may add $6,000 to their standard deduction, with phase-outs beginning at $75,000 adjusted gross income (AGI) ($150,000 for joint filers).
  • Limited deduction for non-itemizers begins in 2026.
    • Those taking the standard deduction may deduct an additional $1,000 ($2,000 for joint filers) for charitable gifts.
    • Note: Gifts to donor advised funds (DAF) are excluded.
  • There will be a new threshold for itemizers in 2026: charitable contributions are deductible only to the extent they exceed 0.5% of adjusted gross income (AGI).
  • The 60% of AGI limit for cash gifts to public charities is permanently extended.
  • Top-bracket donors (37%) may only deduct charitable gifts at 35% starting in 2026.
  • Estate and gift tax exemption increases to $15 million per individual ($30 million per married couple).

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What Does the OBBBA Mean for Your Giving to Boston College:

2025 is a strategic year to maximize your charitable impact, as certain tax benefits are more favorable in 2025 than they will be in 2026. Consider maximizing deductions now.听

  • Itemized deductions will be worth less next year
  • Deductions below 0.5% of AGI will be disallowed in 2026
  • If you're in the 37% bracket, deductions will count at 35%, not 37% in 2026

None of these limitations apply in 2025

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Consider 鈥淏unching鈥� Your Gifts

鈥淏unching鈥� means concentrating multiple years of giving into one high-impact year.

  • Make a larger gift in 2025 to exceed the standard deduction and itemize.
  • In future years, return to the standard deduction.
  • You can also bunch by prepaying a multi-year pledge or accelerating your giving timeline.

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Appreciated Asset Gifts Just Became More Powerful

Even if you don鈥檛 itemize, donating appreciated assets (like stocks or real estate) offers these key benefits:

  • Avoid capital gains tax.
  • Keep reported income lower, potentially qualifying for the senior bonus deduction.
  • If you do itemize, you still receive the full charitable deduction.

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Make a Gift from Your IRA

If you鈥檙e age 70陆 or older, consider a Qualified Charitable Distribution (QCD).

  • You can make a direct gift from your IRA to Boston College.
  • The gift is excluded from taxable income.
  • Lower AGI may reduce Medicare premiums and other tax liabilities.

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Beyond Tax Benefits: Why Your Support Matters

While tax incentives may help you make smarter decisions regarding your philanthropy, your support for Boston College is ultimately about the impact of your giving. Your generosity fuels student success, academic excellence, and transformative programs, ensuring the University continues to lead and grow, regardless of changes in tax law.


We鈥檙e here to help. 精品vA品天堂密桃鈥檚 Office of Gift Planning can guide you through the process, answer questions, and work with your advisors to structure a gift that meets your goals. Contact us at 877-304-SHAW or giftplanning@bc.edu.

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