Meals on Wheels People

By Tim Kalberg, CPA, Principal at Perkins & Co., Meals on Wheels People Board of Directors

For thousands of older adults, a warm meal means more than nutrition — it means dignity, independence, and hope. At Meals on Wheels People, charitable giving is the lifeblood that makes this possible. But as tax changes under the One Big Beautiful Bill Act (OBBBA) approach, the window to maximize your impact is closing fast.

Signed into law on July 4, 2025, the OBBBA introduces major reforms to charitable deductions, but most provisions don’t take effect until Jan. 1, 2026. That means 2025 is the last year donors can take full advantage of current tax benefits. For those who care about making a difference and optimizing their giving, timing matters now more than ever.

This article explains what’s changing, why it matters, and how you can make the most of this moment to support Meals on Wheels People and other nonprofits doing great work in our community. Please keep in mind that everyone’s financial and tax situation is different, so consider this a starting point for conversation with your financial advisor and/or tax professional.

2025: Your Moment to Maximize Impact

The clock is ticking for 2025. With the One Big Beautiful Bill Act set to reshape charitable giving on Jan. 1, 2026, this year offers a unique and fleeting opportunity for donors to make the most of current tax benefits.

Here’s why acting by Dec. 31 matters:

Full deduction for itemizers: Donors in the top federal income tax bracket (37%) can still deduct charitable giving at the current top rate of 37% in 2025. Beginning in 2026, that benefit is capped at 35%, reducing the value of charitable deductions for some donors.
No deduction floor yet: Those who itemize can deduct every eligible dollar they give in 2025. Beginning in 2026, itemizers may only deduct contributions that exceed 0.5% of their adjusted gross income. For example, a household earning $400,000 will lose deductions on the first $2,000 of their giving.
Strategic giving could pay off: Some donors may choose to “bunch” giving and combine several years of planned donations into their 2025 giving to take advantage of the current rules and lock in higher tax benefits before the new rules apply.

2026: A New Giving Landscape

As of Jan. 1, 2026, charitable giving rules will look different. While some changes may feel restrictive, others open exciting doors for many donors.

Here’s what to expect:

Universal deduction for non-itemizers: For taxpayers who take the standard deduction, the OBBBA reinstates an “above the line” deduction of up to $1,000 ($2,000 for joint filers) for cash gifts to qualified charities (excluding donor-advised funds and certain private foundations).
Permanent 60% AGI limit: Cash contributions to qualified charities will continue to be deductible up to 60% of your adjusted gross income (AGI). However, keep in mind that the two new limitations discussed above (the 0.5% of adjusted gross income haircut and the 35% benefit cap for those in the highest tax bracket) will be in place beginning Jan. 1.
Corporate giving floor: The OBBBA adds a 1% floor for corporations. This means that businesses must now give at least 1% of their taxable income before any charitable deduction applies. The current 10% taxable income limit remains in place. While this may reduce smaller corporate gifts, it may also encourage larger commitments from companies that want to make an impact.

What This Means for Your Charitable Giving

As the new rules take effect in 2026, giving patterns may shift — and that’s where opportunity lies. This is our chance for nonprofits to welcome new supporters and show them the impact of every gift.

A few final thoughts:

Giving before Jan. 1, 2026, can maximize the current tax benefits; talk to your financial advisor and/or tax professional.
Starting in 2026, millions of Americans who take the standard deduction may find it easier to begin giving or to increase their support.
Spread the word: Encourage friends and family to take advantage of the new universal deduction in 2026.
Partner with us: Businesses can make a bigger impact by meeting the new 1% giving threshold.
And don’t forget: Qualified charitable distributions (QCDs) from your individual retirement account (IRA) remain valuable to donors over 70 ½ even after the calendar turns, as do donations of certain qualifying non-cash appreciated assets.

When you support Meals on Wheels People or any cause that is meaningful to you, every gift matters. Whether you’re considering a major contribution or making your first donation, your support has a direct impact on the organizations and people you give to.