Making a donation to a nonprofit for the purpose of having them pass the funds directly to a specific individual, is considered a prohibited "private benefit" or "pass-through payment" that risks the nonprofit's tax-exempt status.

There’s a lot to go through in the One Big, Beautiful Bill Act or “OBBBA”. We are going to focus on some of the changes impacting tax exempt organizations and a high level overview of what the average nonprofit leader and donors are interested in. This is not meant to be comprehensive, rather a digestible overview of the OBBBA as it impacts the charitable landscape.

You Can’t Deduct What You Don’t Itemize. Anecdotally, the 2021 changes to the Internal Revenue Code (IRC) impacted the giving patterns of small donors in particular by requiring taxpayers to choose between itemizing charitable contributions or taking the standard deduction.

HR 9495, also known as: “The Stop Terror-Financing and Tax Penalties on American Hostages Act”, passed in the House by a vote of 219-184 largely along party lines, with 15 Democrats supporting the bill and one Republican voting in opposition. It’s now headed to the Senate