Beginning in 2026, the Omnibus Budget Reconciliation Act of 2021 (OBBBA) introduces significant changes to the rules governing charitable contributions. One prominent adjustment is the implementation of a 0.5% of Adjusted Gross Income (AGI) contribution floor for taxpayers who elect to itemize their deductions. This means that itemizing taxpayers will only be able to deduct charitable contributions that exceed 0.5% of their AGI, potentially limiting the tax benefit of smaller charitable donations. Additionally, for taxpayers who do not itemize, the OBBBA provides a deduction specifically for cash contributions, allowing a deduction of up to $1,000 for single filers and $2,000 for joint filers.