Charitable Donations

10-29-2025

Charitable Donations.

With the advent of the One Big Beautiful Bill Act (“OBBBA”), signed on July 4, 2025, high-net-worth taxpayers will see key changes taking effect for tax years beginning January 1, 2026.

A “floor” on itemized charitable deductions: Itemizers can deduct charitable contributions only to the extent that their total contributions exceed 0.5% of their adjusted gross income (AGI). As an example, if the AGI is $100,000, the first $500 of contributions won’t be deductible.

Cap on tax benefit for high earners: For donors in the top marginal tax bracket (37% currently), the tax benefit from each dollar donated will be capped at a deduction rate of 35% (rather than 37%) for itemizers.

Will the new law hurt nonprofits?

Well, I, for one, have never met anyone I would consider a philanthropist who gave to a nonprofit solely for a tax write-off! But these new laws should make nonprofits think twice and realize that donors are not doorstops to be expected to hang around forever. I think this will have some effect, but it would behoove all nonprofits to redouble their efforts to ensure donors feel welcomed and appreciated.

Not everyone will care about your cause.

I know this is hard for most nonprofits to understand, but there are thousands of “good causes” out there. If there is someone in the community known for their generosity, don’t think you are the first person to ask them to meet to talk about the nonprofit you represent.

Donors need to feel some personal connection to what you are doing; otherwise, you’re just another good cause. It’s your job to help provide a compelling reason to give. But again, not everyone will want to get involved. So don’t take it personally, but understand that finding connections is the key to success.

Speaking the donor’s love language.

The idea of a donor’s love language borrows from the concept of “love languages” in relationships (words of affirmation, quality time, acts of service, gifts, physical touch). It translates it into how donors prefer to experience appreciation, connection, and impact.

Here’s how that concept maps beautifully to philanthropy, and what the “keys” are to identifying and speaking your donor’s love language effectively:

Words of Affirmation → Meaningful Appreciation.

What it means:
Some donors feel most connected when they’re sincerely thanked and told how much their support matters.

Keys to this love language:

• Personalize every thank-you. Use their name, reference their specific gift, and mention its impact (“Your gift funded three new scholarships this semester”).
• Use multiple channels — handwritten notes, short videos, or a call from a beneficiary.
• Public recognition (if they’re comfortable) — annual reports, events, newsletters.
• Avoid formulaic “thank you for your generous donation” messages — these donors crave authenticity.

Quality Time → Relational Engagement.

What it means:
These donors value time spent on your mission and with your people more than polished reports.

Keys:

• Invite them to behind-the-scenes tours, small gatherings, or one-on-one coffee meetings with leadership or program staff.
• Offer opportunities to ask questions, share their perspective, or give feedback.
• Follow up personally after events (“We loved your idea about…”).
• Keep them close year-round, not just at giving time; they want to feel part of the journey.

Receiving Gifts → Tokens of Meaning and Impact.

What it means:
For some donors, a tangible reminder of the difference they make is meaningful.

Keys:

• Send symbolic items (e.g., a photo of the community they helped, an artwork made by program participants).
• Focus on gifts that evoke an emotional connection, not their monetary value.
• Consider giving “impact reports” or progress updates as “gifts of insight.”
• Avoid generic merchandise; authenticity and connection matter more than swag.

Acts of Service → Opportunities to Contribute Beyond Money.

What it means:
These donors want to do something, not just write a check.

Keys:

• Offer meaningful volunteer roles, advisory positions, or mentoring opportunities.
• Show how their involvement (not just their dollars) advances the mission.
• Share stories where their effort directly led to a result.
• Invite them to co-create; help design a program or event.

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Physical Touch → Human Warmth and Presence (Adapted).

In philanthropy, this isn’t literal; it’s about warmth, presence, and connection.

Keys:

• Create emotionally resonant, in-person experiences; site visits, hugs at events (when appropriate), and genuine eye contact.
• Use real, human language in communications, not institutional jargon.
• Remember birthdays, anniversaries, or giving milestones, and celebrate those moments of connection.

How to Discover a Donor’s Love Language?

• Ask directly: “How do you most like to hear about your impact?” or “What kind of thank-you means the most to you?”
• Observe behavior: Do they respond warmly to handwritten notes (words)? Do they attend every event (time)? Do they light up when volunteering (acts of service)?
• Track preferences: Use a customer relationship management software tool or a written note card to record which communication or recognition they respond to best.
• Test and learn: Try different engagement styles and notice what deepens their connection.

Organizational “Love Languages.”

Different nonprofits also have their own “love language” cultures:

• Data-driven orgs → impact reports and outcomes.
• Community-centered orgs → relationships and storytelling.
• Faith-based or mission-driven orgs → shared values and belonging.

When you can align your donor’s love language with your organization’s authentic style, this is where the magic happens.

If you have any questions or comments, please don't hesitate to contact me. Additionally, please explore the rest of my blog and website to see if any of this information can be helpful to you.

To learn more, visit the blog life, reflection, and faith.