What's Happening?
Givinga, a company specializing in philanthropic financial technology, has introduced a new workplace philanthropy suite designed to help companies and employees adapt to significant changes in charitable giving laws set to take effect in 2026. These changes, part of the One Big Beautiful Bill Act (OBBBA), include a universal charitable deduction, exclusions for Donor-Advised Funds, and corporate giving floors. The suite offers various tools such as the Universal Sponsored Account (USA), which allows employees to contribute and receive the new universal deduction, and the Charitable Investment Account (CIA), which provides tax-free investment growth and asset management solutions. The suite aims to align corporate charitable activities with
employee generosity, enhancing participation and impact.
Why It's Important?
The upcoming tax reforms will fundamentally change how charitable giving is structured in the U.S., affecting both individuals and corporations. With federal funding for nonprofits decreasing, companies are expected to play a larger role in supporting charitable causes. Givinga's suite provides a strategic approach to philanthropy, enabling companies to manage and grow their philanthropic capital effectively. This shift could lead to increased employee engagement and operational efficiency, as companies integrate charitable giving into their business strategies. The ability to offer tax advantages and manage charitable funds efficiently will be crucial for companies looking to maintain their social responsibility commitments.
What's Next?
As the 2026 tax law changes approach, companies are encouraged to begin planning their charitable strategies now to be prepared for the new environment. Givinga's suite is available immediately, allowing organizations to start aligning their charitable activities with the upcoming reforms. Companies that proactively adapt to these changes will likely lead in corporate philanthropy, setting a precedent for others to follow. The focus will be on maximizing the impact of charitable contributions while navigating the complexities of the new tax landscape.
