What's Happening?
Foundation Source has released its 2026 Giving Outlook, highlighting the resilience of strategic donors in the face of policy shifts and funding uncertainties. Despite these challenges, donors have distributed
over $1.6 billion in grants to more than 27,000 recipients in 2025. The report, authored by CEO Joseph Mrak III, explores how tax reform, technology, and evolving donor demographics are reshaping charitable giving. The One Big Beautiful Bill Act, set to take effect in 2026, introduces new tax provisions that impact donor strategies, including above-the-line charitable deductions and adjusted AGI thresholds. These changes necessitate strategic planning to optimize philanthropic impact.
Why It's Important?
The resilience of donors amid changing tax policies underscores the importance of strategic philanthropy in sustaining nonprofit operations. As federal and state funding shifts create budget constraints for charitable organizations, private philanthropy becomes crucial in filling funding gaps. The introduction of new tax provisions presents both opportunities and complexities for donors, requiring careful planning to maximize impact. This environment encourages the use of technology and personalized guidance to navigate the evolving philanthropic landscape, potentially leading to more efficient and impactful giving practices.
What's Next?
As the One Big Beautiful Bill Act takes effect, donors and advisors will need to adapt their strategies to align with new tax regulations. This may involve accelerated gifts, appreciated asset contributions, and the establishment of new charitable vehicles. The philanthropic sector is likely to see increased investment in digital platforms and AI-assisted tools to enhance collaboration and resource deployment. These developments will shape the future of strategic giving, emphasizing adaptability and cross-sector collaboration as key components of effective philanthropy.
