Tax Law Changes – Time to study up?
Spark Notes will be featured as a blog post each month, providing information relevant to current donors and fundholders and to those who may want to give to the Community Foundation.
The One Big Beautiful Bill Act was signed into law by President Trump on July 4, 2025, after the House of Representatives approved the Senate’s changes to H.R. 1, which passed the House by a narrow margin in May.
The OBBBA, with nearly 900 pages of provisions, reshapes policy across major sectors of the U.S. economy. Included in the OBBBA are several provisions that impact philanthropy. Three major takeaways are of particular importance as the community foundation helps donors, fund holders, and nonprofits–as well as attorneys, CPAs, and financial advisors–navigate charitable planning opportunities over the months and years ahead.
(Notably, the OBBBA omits several provisions that appeared in previous versions of the legislation, such as a proposed increase to the net investment income tax on private foundations.)
Insight #1: Standard deduction goes higher
What’s in the OBBBA?
The new law makes permanent the standard deduction increases under the Tax Cuts and Jobs Act of 2017 (TCJA), increasing the standard deduction for 2025 to $15,750 for single filers and $31,500 to taxpayers who are married and filing jointly. The new law also expands the “bonus” deduction for taxpayers 65 and older through 2028.
What’s more, under the new law, individuals who itemize may take charitable deductions only to the extent the charitable deductions exceed 0.5% of adjusted gross income. Furthermore, taxpayers in the top bracket can only claim a 35 percent tax deduction for charitable gifts instead of the full 37 percent that would otherwise apply to their income tax rate. Note also that the final bill extended the 60% of adjusted gross income contribution limitation for cash gifts made to certain qualifying charities.
What does this mean for charitable giving?
With even fewer taxpayers eligible to itemize, and deductions capped for high-income earners, we’re likely to see a continuation of the chilling effect on charitable giving that occurred in the wake of the TCJA.
What can you do?
If you regularly support charities, it’s important to continue to do so whether or not you’re benefiting from a tax deduction. Our community needs you, now more than ever. If you’re a nonprofit, or if you’re an attorney, CPA, or financial advisor who works with charitable clients, remember that people do not give to charity solely to secure a tax deduction. Keep in mind that many other factors motivate charitable giving, and philanthropy is an important priority for many families. (This article in the Stanford Social Innovation Review has stood the test of time.)
Insight #2: Deduction for non-itemizers
What’s in the OBBBA?
The new law includes a provision, effective after 2025, allowing non-itemizers to take a charitable deduction of $1,000 for single filers and $2,000 for taxpayers who are married and filing jointly. As has been the case in the past, gifts to donor-advised funds are not eligible. Unlike a previous (but smaller) similar provision, though, this law is not set to sunset.
What does this mean for charitable giving?
After the TCJA went into effect, households that itemize deductions dropped to under 10%. Parallel to this trend, the number of U.S. adults who give to charity in any given year has dropped over the last 20 years from nearly two-thirds to less than half, according to some studies. Against this backdrop, the OBBBA’s deduction for non-itemizers has the potential to re-motivate charitable giving among a significant number of households.
What can you do?
For everyone, now is the time to take a serious look at your charitable giving plans to support the causes you care about over the years ahead, especially if you are early in your career and not yet itemizing deductions. If you’ve already established a fund or you’re working with the Community Foundation in another way, please reach out to learn how we can help you make the most of the new tax laws, and even get your children and grandchildren involved. If you’re a nonprofit, now is the time to attract and engage brand new donors. And if you’re an attorney, CPA, or financial advisor, make sure you talk about charitable giving with your clients who don’t itemize; a $1000 or $2000 deduction could be just the motivation they need to begin a journey of philanthropy.
Insight#3: No sunsetting estate tax exemption
What’s in the OBBBA?
For affluent taxpayers updating financial and estate plans, and for the attorneys, CPAs, and wealth managers advising them, the last couple of years have been a roller coaster because of the looming possibility that the TCJA’s increase to the estate tax exemption would sunset at the end of 2025. Finally, there is clarity: Under the OBBBA, the sunset will not happen. The new law makes permanent the increase in the unified credit and generation-skipping transfer tax exemption threshold. The 2025 exemption is $13.99 million for single filers and $27.98 million married filing jointly. In 2026, these numbers increase to $15 million and $30 million respectively.
What does this mean for charitable giving?
Purely estate tax-based incentives to give to charity continue to apply only to the ultra-wealthy, likely resulting in a continuation of the taxpayer behavior triggered by the TCJA. In other words, most people will give to charity during their lifetimes and in their estates for reasons other than a tax deduction.
What can you do?
There is no guarantee that the estate tax exemption will stay high forever. As families work with their tax and estate planning advisors, many are viewing the next two years as an important window to plan ahead. The upshot of the new law is that high net-worth taxpayers now have more time to thoughtfully consider estate planning strategies, including charitable giving. For nonprofit organizations, this means continuing to focus on long-term planned giving strategies is wise.
| The team at the Community Foundation is honored to serve as a resource and sounding board as you build your charitable plans and pursue your philanthropic objectives for making a difference in the community. This newsletter is provided for informational purposes only. It is not intended as legal, accounting, or financial planning advice. Please consult your tax or legal advisor to learn how this information might apply to your own situation. |
Maggie Lewis does not currently live in Berks County, but her connections to home run deep. Maggie grew up here and now returns regularly to participate as a member of the Power of the Purse (POP) women’s giving circle. As a working mother living outside Philadelphia who is busy with her husband and twin toddlers, Maggie makes time to come to Berks County regularly for POP meetings and events, because she believes the mission of POP and the grantmaking facilitated by the Community Foundation is a meaningful way to give back to the community in which she was raised. While she lives in Aston, PA with her family, her connections to her home stay strong.
The Power of the Purse (POP) Fund of Berks County Community Foundation was established in 2012 and currently boasts over 60 members. POP members meet four times per year and attend optional site visits to determine recipients of grant funding through an application and review process. The Community Foundations manages the application and review process.
To read more about Maggie, click here to view the 2025 edition of 237 Court, the official magazine of Berks County Community Foundation. Her donor highlight story is on page 14.
To learn more about the Power of the Purse Fund of Berks County Community Foundation, please click here.
The third issue of 237 Court Magazine is now available! This annual magazine returned to publication in 2024 and will be released each June. This year’s issue features articles about the ways in which the Community Foundation “connects the dots” in Berks County. From connecting donors to options for giving – to connecting students to engaging experiences and learning opportunities – to connecting leaders to each other in an effort to share resources, this magazine issue shines a light on the grantmaking and initiative work of Berks County Community Foundation. Click here to read the 2025 issue of 237 Court Magazine!
Visit our News and Events page to stay up to date on Berks County Community Foundation.
Reading, PA (June 23, 2025) – Berks County Community Foundation granted $102,500 to support 10 local projects that will address critical environmental challenges, promote sustainable practices, and build collaborative partnerships. Grants were made from the Innovation Fund of Berks County Community Foundation, which supports projects that improve environmental health and climate resiliency in Berks County.
The 2025 grants include:
- $1,000 to Albany Township for community park improvements
- $6,000 to the Berks Recycling Coalition to support the Berks County Earth Day event
- $15,000 to Berks Nature to support municipal outreach and collaboration
- $12,500 to Berks Nature for planning and restoration work with watershed associations
- $5,000 to the Borough of Lyons for stream restoration planning at Lyons Borough Park
- $15,000 Delaware Riverkeeper Network to support environmental leadership development
- $12,000 to PennEnvironment Research and Policy Center to support clean energy work in Berks County
- $12,000 to Student Conservation Association for the Reading Conservation Corps
- $12,000 to What’SUP Berks Initiative to reduce single use plastics throughout Berks County
- $12,000 to Widoktadwen Center for Native Knowledge to build an indigenous ecological education garden
“These grants will deliver vital support for local initiatives tackling urgent environmental issues, advancing sustainable solutions, and strengthening our community’s ability to adapt to the growing impacts of climate change,” said Emily Smedley, Environment and Energy Program Officer at Berks County Community Foundation.
To learn more about The Innovation Fund, please visit https://bccf.org/funds/the-innovation-fund/.
The Community Foundation may be best known for our grantmaking, but a considerable portion of our time is spent on community initiative work. One such project is focused on attracting and retaining college students to Berks County.
Albright College, Alvernia University, Kutztown University, Penn State Berks, and Reading Area Community College have long been cornerstones of our community. The addition of Drexel University’s medical school campus in West Reading has created even more opportunities for higher education in Berks County.
Data from Albright, Alvernia, and Penn State Berks shows that they enroll about 35% of their students from Berks County. That means that 65% of their students have chosen to relocate to Berks County for four years of their lives.
The Community Foundation began to investigate this topic by gathering a group of Berks County residents – college and university leaders, government agencies, nonprofit organizations, business owners, and civic groups to discuss ways to attract and retain students to Berks County. Student engagement with the local community supports better retention.
One focus area emerged: it is essential to make it easier for students to find local employment through internships, mentorships, and better connections between employers and campuses.
As a result of these conversations, a first-of-its-kind event is happening soon! On July 10th, 2025, Alvernia University is hosting a collaborative Internship Summit.
This event is designed for businesses and employers to help create meaningful and effective internship opportunities. For more information and to register, click on the link. To stay up to date on the Foundation, visit our News and Events page.
Reading, PA (June 12, 2025) – Home Health Care Foundation and Berks County Community Foundation announced that they have merged. Home Health Care Foundation became an affiliate of Berks County Community Foundation in 2020. The transaction adds $7.3 million to the Community Foundation’s assets.
Home Health Care Foundation was created in 2019 after the merger of Berks Visiting Nurse Association, the Visiting Nurse Association of Pottstown and Vicinity and Advantage Home Care with Tower Health.
For years, each of these organizations provided compassionate and much-needed care to the communities they served. In that spirit, the Home Health Care Foundation was created to support charity care and other programs for the good of the community.
The Community Foundation has supported the Home Health Care Foundation board over the past five years.
The merger between the two foundations creates a fund at Berks County Community Foundation that will support:
- Programs and educational activities that promote the general health and wellness of Berks County residents or its contiguous counties
- Organizations and programs that help the residents of Berks County or its contiguous counties recover from illness or disability at home
- Organizations that provide health-related charity care for the residents of Berks County or its contiguous counties
- Programs and activities that support preventative healthcare and community health.
Kevin K. Murphy, president of Berks County Community Foundation, stated, “Our board and staff are delighted to be carrying on the legacy of Berks Visiting Nurses Association. We look forward to continuing to support projects that help our residents remain healthy and active.”
Rabbi Brian Michelson, Chair of the Home Health Care Foundation board, commented, “The board of the Home Healthcare Foundation has confidence that the Berks County Community Foundation will utilize these funds to enhance healthcare in the Berks County community and support programs that enable individuals to age in place and avoid unnecessary hospitalizations. This mission honors the legacy of the Berks Visiting Nurse Association and its donors.”
For more information, please contact Monica Reyes, Vice President for Programs and Initiatives, at monicar@bccf.org. To learn more about Monica Reyes and the Community Foundation team, visit Our Team page.
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Berks County Community Foundation is a nonprofit corporation serving as a civic leader for our region by developing, managing, and distributing charitable funds to improve the quality of life in Berks County, PA. More information is available at www.bccf.org.
On Tuesday, May 6th, Berks County Community Foundation hosted a poverty simulation event at GoggleWorks, facilitated by Community Action Partnership of Lancaster. Dozens of community leaders attended to gain an understanding of the daily struggles faced by individuals living in poverty. School administrators, local government officials, mental health professionals, attorneys, and nonprofit organization staff participated in this event focused on tackling poverty in Berks County.
Cindy Milian, Health & Human Services Program Officer at the Community Foundation, organized and participated in the simulation. She shared her thoughts after the event: “I felt uplifted to see the variety of community leaders who actively participated in this simulation and voiced their renewed compassion for the Berks County residents who are struggling just to survive. With 41% of Berks County residents living paycheck to paycheck, I’m glad that conversations were had to discuss how we can all play a part in reducing the barriers faced by those living in poverty.”
To learn more about this event, email Cindy at cindym@bccf.org. To learn more about Cindy Milan and other Berks County Community Foundation team members, visit the Our Team page.
Berks County Community Foundation hosted our annual scholarship luncheon on May 21st, 2025, at the DoubleTree Hotel in Reading. Members of our staff welcomed students and their families, donors and scholarship fund representatives, and community leaders to gather in recognition of the impressive achievements of local students and the generosity of donors who enable students to pursue their dreams.
At the 2025 Scholarship Luncheon, the Community Foundation will award over $700,000, bringing the total amount disbursed since its inception in 1994 to over $14,700,000! Thousands of recipients have benefited from these scholarships over the years as they continue to pursue higher education.
The annual scholarship luncheon highlights the strength of community support. Each scholarship offers essential resources and inspiration for students to forge their own paths, making a difference in Berks County and beyond.
Kim Sheffer, Lifelong Learning Program Officer, welcomed guests and highlighted the significance of the Berks’ Best Award recipients’ accomplishments. Berk’s Best awards are a partnership between Berks County Community Foundation and the Reading Eagle, with coordination support from BCIU. Kim also congratulated all of the 2025 scholarship recipients and commended the dozens of volunteers who spent countless hours reviewing hundreds of scholarship applications.
Dr. Radha Pyati, Chancellor and Dean of Penn State Berks, shared advice and personal stories about the impact of relationships in her keynote address.
If you are interested in making a difference in the lives of local students through educational support, please consider giving to one of our many scholarship funds today!
Power of the Purse in Berks County Fund Awards over $70,000 in Grants
Reading, PA – May 15, 2025 – The Power of the Purse in Berks County Fund of Berks County Community Foundation recently awarded $70,899 in grants to seven organizations. The Power of the Purse Fund supports programs that help break the cycle of poverty by eliminating or addressing barriers for Berks County girls and/or women who want to enter or re-enter the workforce or seek the education to do so.
The following grants were awarded:
- $15,000 to Safe Berks to help eliminate barriers that survivors of domestic violence and sexual assault face in obtaining and/or maintaining employment by providing direct support and financial assistance for education and employment needs.
- $15,000 to Helping Harvest to focus support on low-income women during pregnancy and up to one year postpartum to provide a box of healthy, vitamin-rich foods.
- $15,000 to Reading Science Center to provide access to a wide spectrum of hands-on science investigations, professional female role models and field trips that inspire young women with the confidence and skills to prepare for careers in the sciences.
- $8,000 to Literacy Council of Reading-Berks to help female residents of the community participate in the Gateway to Citizenship Program.
- $8,000 to Hannah’s Hope Ministries to provide career guidance, skills training, and mentorship and to introduce women to industries and roles that align with their interests and abilities.
- $6,399 to Co-County Wellness to help educate teens to make healthy and informed choices to postpone pregnancy and plan their futures.
- $3,500 to John Paul II Center for Special Learning to provide female students ages 10-45 with any disability category a safe space to talk about their bodies, rights, safety, and self-advocacy with staff and community experts.
“From an outsider’s perspective, you think that there are these big mountains that you have to go over, but sometimes it’s a small amount of money or just a small gesture that can make the difference for someone being successful and getting out of poverty or getting a job,” said Chiara Renninger, founder of Power of the Purse. “I learned that small things can really make a huge difference to people.”
“Being able to engage the collective giving of the Power of the Purse (POP) is really empowering for the women in our community,” said Cindy Milian, health and human services program officer. “POP funding for these organizations supports the belief that woman play a pivotal role in driving change and shaping the future of Berks County.”
Power of the Purse Fund was created in 2012 as a women’s giving circle. For more information, visit https://bccf.org/funds/power-of-the-purse-in-berks-county-fund/ or email Molly McCullough Robbins, Vice President for Philanthropic Services, at mollyr@bccf.org.
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Berks County Community Foundation is a nonprofit corporation serving as a civic leader for our region by developing, managing, and distributing charitable funds to improve the quality of life in Berks County, PA. More information is available at www.bccf.org.
In November 2024, Kevin K. Murphy wrote a blog post about Spotlight PA and the importance of local news. He detailed the path taken by the Community Foundation to support the launch of a Berks County news bureau and highlighted the opportunity for in-depth reporting that Spotlight PA would provide for our residents.
We have watched with anticipation as Spotlight PA hired first-class journalists to join the team led by CEO and President, Chris Baxter and Managing Editor, Lisa Scheid.
This week, Spotlight PA announced the upcoming launch of their daily e-newsletter, Good Day, Berks, which will debut on May 5, 2025; It will provide important news about Berks County all in one place, provide a unique perspective into what’s happening in our communities, and highlight it’s local reporting. Readers can expect news about business, events, municipal and school board meetings, and news from across the state.
Berks County Community Foundation was at the very forefront of the national effort to address the need for local news. We are delighted to see that Spotlight PA is taking this next step. To sign up to receive the newsletter, click here.
To learn more about Spotlight PA’s Berks news bureau, please join us for an in-person Community Forum on June 5, 2025. Registration information can be found here.
