Rich mega-donors like MacKenzie Scott have been pumping hundreds of millions of dollars into philanthropic causes—but Trump’s new tax policies could put billionaire charity in jeopardy. And America’s middle class won’t be able to pick up the pieces.
President Donald Trump’s “One Big Beautiful Bill,” signed into law this July, will limit tax benefits for wealthy donors starting in 2026. The new ceiling will cut the effective tax benefit from 37% to 35%. The legislation also suppresses tax breaks for itemizers: They’ll be able to deduct donations only in excess of 0.5% of their adjusted gross income.
