Charitable giving unlocked for business owners under the OBBBA

How recent tax changes may influence giving, timing and long-term impact

July 21, 2026

What business owners should know about the OBBBA

Recent changes under the One Big Beautiful Bill Act (OBBBA) are reshaping how business owners approach exit planning and charitable giving, as they become aware of the tax benefits of donating a portion of their business.

Enhanced business provisions may improve cash flow and flexibility. At the same time, new deduction thresholds introduce additional considerations around how and when contributions are structured.

For those planning a liquidity event, timing may play an important role in aligning philanthropic goals with broader financial planning.

Key takeaways from the video:

  • Enhanced OBBBA provisions may accelerate business deductions, potentially improving cash flow and overall business value
  • New minimum thresholds affect when charitable contributions become deductible for both corporations and individuals
  • Timing matters: contributing a business interest before a sale may reduce taxable income and enhance charitable impact
  • Public charities and donor-advised funds may offer more flexible and potentially favorable structures for charitable giving
  • Careful planning is important, including timing, valuation requirements and potential implications for charitable recipients

Why this matters now

The OBBBA introduces changes that may influence how business owners evaluate both their tax strategy and charitable decisions. Reviewing these considerations ahead of a business transition may help support more coordinated planning across wealth, tax and philanthropy.

Next step

Connect with your advisor to discuss how these considerations may apply to your situation.

A Private Wealth Advisor can help you get started.

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Donor-advised fund management is provided by Bank of America Private Bank, a division of Bank of America, N.A., Member FDIC and a wholly owned subsidiary of Bank of America Corporation (“BofA Corp.”).

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