Resilient Spirits in a Changing Landscape
As we begin a new fiscal year, the steady saguaro reminds us to grow with purpose. Rooted deep in the desert, it stands strong and adaptable through every season. Like the saguaro, we stay grounded in our values while facing challenges and seeking new opportunities to serve our community.
This spirit of resilience comes at a time of change as the “One Big Beautiful Bill” became law as H.R. 1.
What does this mean for the nonprofit sector?
The new law adds a universal charitable deduction, so even people who don’t itemize can still get a tax break for donating. This could help encourage more giving, especially smaller gifts from everyday donors. At the same time, the higher standard deduction means fewer people will itemize, which could lead to a drop in overall donations, particularly from middle-income households.
The law also raises the estate tax exemption, which may reduce large charitable gifts made through estate planning. It adds new rules for how nonprofits report income from business activities, which creates more paperwork and may lead to higher taxes for some organizations.
There’s also a new cap on state and local tax deductions. This could strain public budgets and reduce funding for services that nonprofits often support. And as government funding shrinks, nonprofits may face more demand with fewer resources.
What can you do?
It’s important to keep donors informed about the new universal charitable deduction. Explain that they can still get a tax benefit for giving, even if they don’t itemize. Focus your messaging on the real impact their gifts make by sharing stories that show how their support changes lives. People give because they feel connected to the mission, so keep that connection strong.
Keep in regular contact and encourage ongoing support through things like monthly giving programs. It’s also a good time to diversify your fundraising by exploring earned income, planned giving, and corporate partnerships to offset any possible drops in individual donations.
Finally, be sure your finance team or accountant understands the new tax rules and reporting requirements so you can stay compliant and avoid surprises.
Stay Informed. Stay Connected. Stay Committed.
As we move forward, it’s clear that these changes bring both challenges and opportunities. By staying informed, keeping your donors connected to your mission, and adapting your fundraising strategies, your nonprofit can continue to stand strong, just like the steady saguaro. Together, we’ll face whatever comes next and keep making a difference in our community.
In Southern Arizona, we BLOOM together.
In Community,
Jenny Flynn
President & CEO
Community Foundation for Southern Arizona