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If you're a Stuart, FL resident who supports local causes: whether it's the 1715 Treasure Coast Fleet Society, your favorite environmental nonprofit, or a community foundation: the way you give just changed. The One Big Beautiful Bill Act (OBBBA) has introduced sweeping modifications to charitable giving rules, and understanding these changes could mean the difference between maximizing your impact and leaving money on the table.

Let's break down what you need to know and how to make your philanthropy work harder for both you and the causes you care about.

What Is the One Big Beautiful Bill Act (OBBBA)?

The OBBBA represents one of the most significant tax code overhauls in recent years. While it touches everything from income taxes to estate planning, the provisions affecting charitable giving are particularly noteworthy for Florida donors.

Here's the thing: Florida doesn't have a state income tax, which already gives you certain advantages. But federal tax rules still apply, and the OBBBA fundamentally reshapes how charitable contributions translate into tax benefits. Some changes open new doors. Others create hurdles that require smarter planning.

Whether you're writing modest checks to local charities or making substantial gifts as part of your wealth management strategy, these rules now apply to you.

Jar of gold coins transforming into hearts, symbolizing tax-smart charitable giving in Florida philanthropy

Key Charitable Giving Changes for 2026

The OBBBA introduces several provisions that took effect this year. Let's look at the ones that matter most for your giving strategy.

The Universal Charitable Deduction Returns

Good news for the vast majority of taxpayers: if you don't itemize deductions, you can now claim a charitable deduction of up to $1,000 (or $2,000 for married couples filing jointly). This is significant because roughly 90% of taxpayers take the standard deduction rather than itemizing.

Before this change, non-itemizers received zero direct tax benefit for their charitable giving. Now, there's a tangible incentive to give: even if your donations are relatively modest.

The New 0.5% Floor

Here's where things get a bit tricky. Beginning January 1, 2026, charitable contributions are only deductible to the extent they exceed 0.5% of your adjusted gross income (AGI).

What does this mean in practice? If your AGI is $200,000, your charitable donations must exceed $1,000 before any deduction kicks in. For someone with $500,000 in AGI, that threshold jumps to $2,500.

This floor applies to contributions of any property to any qualifying organization. It's a new planning consideration that didn't exist before.

The Permanent 60% Cash Cap

On the positive side, the OBBBA made permanent the enhanced 60% AGI deduction cap for cash contributions to public charities. This was previously scheduled to revert to 50% at the end of 2025.

For generous donors making substantial cash gifts, this means you can deduct more in a single tax year than would have been possible under the old rules.

Increased SALT Deduction

The state and local tax (SALT) deduction cap has been temporarily raised from $10,000 to $40,000. While this primarily benefits residents of high-tax states, it does affect your overall tax picture and how you might structure your giving.

How These Changes Affect Stuart, FL Donors

Living in Stuart gives you a unique philanthropic landscape. From supporting marine conservation along the Treasure Coast to contributing to local arts organizations and community foundations, there's no shortage of worthy causes.

Here's how the OBBBA changes specifically impact different types of donors in our community:

If You're a Standard Deduction Filer

You now have a direct incentive to give. That $1,000 or $2,000 universal deduction means your gifts to local nonprofits: whether it's the Stuart Heritage Museum or a youth sports league: actually reduce your tax bill. This wasn't the case for most people over the past several years.

If You're an Itemizer

The 0.5% floor requires more intentional planning. Spreading small donations across many organizations might not be as tax-efficient as it once was. You may want to consider concentrating your giving or using strategies like donor-advised funds to maximize your deduction.

If You're a High-Net-Worth Donor

The permanent 60% cash cap is excellent news. Combined with proper wealth management strategies, you can make substantial gifts while maintaining significant tax benefits. However, the 0.5% floor still applies, so coordination with your financial advisor is essential.

Diverse hands assembling Florida puzzle, representing collaborative charitable giving strategies in Stuart FL

Tax-Smart Giving Strategies for Florida Philanthropists

Now that you understand the changes, let's talk about what you can actually do about them. Here are strategies that Davies Wealth Management recommends for Stuart-area donors:

Bundle Your Donations

"Bunching" charitable contributions into fewer years is now more valuable than ever. Instead of giving $5,000 annually, consider giving $10,000 every other year. This helps you exceed the 0.5% floor by a larger margin and potentially allows you to itemize in your giving years while taking the standard deduction in off years.

Consider Donor-Advised Funds (DAFs)

A DAF allows you to make a large, tax-deductible contribution in one year while distributing the funds to charities over time. You get the immediate tax benefit while maintaining flexibility about which organizations receive support and when.

Time Larger Gifts Strategically

If you're planning a significant charitable gift, timing matters more than ever. Working with a wealth management professional helps you identify the optimal year for major donations based on your income projections and overall financial picture.

Leverage Appreciated Assets

Donating appreciated stocks or other securities directly to charity can provide a double benefit: you avoid capital gains taxes and receive a deduction for the full fair market value. The AGI limits differ from cash (typically 30% for capital gains property), but this remains a powerful strategy for many donors.

Integrate Planned Giving

With fewer estates subject to federal estate tax, charitable remainder trusts, charitable lead trusts, and bequest planning offer opportunities to align your estate plan with your philanthropic goals. Our estate planning tool can help you explore these options.

Why Estate Planning Matters More Than Ever

The OBBBA doesn't just affect annual giving: it reshapes how charitable giving fits into your broader estate plan. For Stuart residents with significant assets, integrating philanthropy into your estate strategy can:

  • Reduce potential estate tax exposure
  • Create a lasting legacy for causes you care about
  • Provide income streams during retirement through vehicles like charitable remainder trusts
  • Support the next generation's involvement in family philanthropy

If you haven't reviewed your estate plan since the OBBBA passed, now is the time. The rules have changed, and your documents may need updating.

Family tree and Florida coastline illustration, highlighting estate planning and legacy-focused philanthropy

Working With a Wealth Manager on Your Giving Strategy

Here's the bottom line: the OBBBA creates both opportunities and complexity. The universal deduction brings millions of Americans back into the charitable giving incentive structure. But the 0.5% floor, combined with various AGI limits and timing considerations, means that maximizing your tax-smart giving requires more sophisticated planning than ever before.

At Davies Wealth Management, we help Stuart-area clients integrate charitable giving into their comprehensive financial plans. This isn't about giving less: it's about giving smarter, so more of your resources reach the causes you care about while you retain appropriate tax benefits.

Whether you're supporting local Treasure Coast organizations, national nonprofits, or establishing a lasting philanthropic legacy, the strategies you use matter. The OBBBA has rewritten the rules. Make sure your giving strategy reflects the new reality.

Ready to optimize your charitable giving under the new tax rules? Reach out to Davies Wealth Management to discuss how these changes affect your specific situation and what adjustments might benefit both you and the causes closest to your heart.