Understanding the OBBBA: new tax rules and the future of UHNW philanthropy
For decades, charitable tax deductions have been a reliable benefit to highlight in donor engagement and fundraising strategies. But with the passage of the One Big Beautiful Bill Act, philanthropy is set to change dramatically in 2026. The landmark legislation introduces two major changes for charitable contributions: a new, higher deduction floor and a lower tax benefit cap for the highest earners.
As a result, charitable giving is no longer universally tax-advantaged for UHNW investors, and even the wealthiest high-capacity donors are becoming more selective and more strategic about how they give to charity. The playbook for wealth management is being rewritten in real time, and fundraisers need to update their engagement strategy with it. Here’s what you need to know about this shifting landscape in 2026.
The end of tax motivated philanthropy?
The OBBBA is making drastic changes to tax implications for charitable giving, which will dramatically alter donor behavior and long-established giving patterns. The two primary changes are:
- New deduction floor for itemizers. Charitable donations below 0.5% of a donor’s Adjusted Gross Income (AGI) will no longer be deductible. This creates a “cliff” that reduces the benefit of smaller, annual cash gifts for many high-income donors, which might curtail donations.
- Reduced tax benefit for top earners. The value of itemized deductions will now be capped for tax payers in the highest brackets, effectively lowering tax savings from each dollar given.
The OBBBA is also going into effect at the same time as the Great Wealth Transfer, where an estimated $31 Trillion in assets will be passed down to next generation donors by 2033. These next-generation philanthropists are increasingly motivated by personal values and impact rather than pure tax savings.
OBBBA doesn’t spell the end of charitable giving, just that the ‘why’ and ‘how’ for donations are evolving. These tax changes reinforce the urgency fundraisers have to understand who their donors really are, both in terms of their personal values, and their financial reality.
Why investable assets matter more than ever
In this new landscape, a donor’s investable assets provide more insight into philanthropic capacity than nearly any other metric. Investable assets are the liquid (or near-liquid) marketable securities, cash, funds, and other holdings that can be readily accessed and deployed for investment — or donation.
On the other hand, static, total net worth is typically locked in illiquid assets like private businesses, primary residences, and valuable collections. Investable assets represent actionable wealth that needs utilization and direction. They’re the primary resource a donor can use to make large gifts without the complexity of selling a company or home.
Liquidity equals flexibility. A donor with high investable assets liquidity has less friction or barriers to making a transformative gift…
Altrata data shows how vast these liquid assets are. Approximately 16 million individuals across the globe hold over $1 million in investable assets, totaling over $67 trillion. This pool is projected to grow by a third to $97.5 trillion by 2030. This wealth is also hyper-concentrated, with just 1.2% of this population (the UHNW $30 million and over tier) controls about 35% of all global investable assets.
Knowing who has these investable assets, how much, and what kind is foundational for any donor engagement strategy moving forward:
- Liquidity equals flexibility. A donor with high investable asset liquidity has less friction or barriers to making a transformative gift to your organization than a donor whose wealth is tied up in hard assets. What’s more, maintaining financial flexibility indicates a donor that intends to take action with their wealth.
- Investable assets reveal giving capacity. Hard assets are the foundation of long-term wealth and are rarely touched, no matter how compelling a nonprofit’s message. Investable assets indicate how much a prospect can donate meaningfully without disrupting their lifestyle or long-term financial plans.
- Investable assets enable tax advantages. Even under the new OBBBA, investments like appreciated securities and DAF contributions offer the highest tax savings for charitable giving, and they’re fueled almost exclusively by investable assets. While the tax advantages are greatly reduced in this new environment, philanthropy can still serve as a vital part of UHNW tax planning.
The new rules of donor engagement for 2026 and beyond
With so much flux in the market, fundraisers need to double-down on next-gen prospecting and donor engagement strategies. Consider these tactics as you plan for 2026:
- Prioritize based on verifiable investable assets. Shift prospect research to focus on liquidity analysis so you can concentrate efforts on those with the clearest capacity to give. If this information is missing from profiles of your current prospects and donors, be sure to start with them.
- Highlight diverse giving options. Because of OBBBA, the most efficient gifts in 2026 and beyond will leverage appreciated assets, so ensure your donor engagement team is fluent in non-cash donations. They must be able to discuss these options confidently and collaborate effectively with the donor’s advisors on ensuring an efficient and frictionless donation that benefits the donor as much as the organization.
- Proactively engage UHNW wealth managers. Understand the challenges they face under these new tax laws and position your organization as a knowledgeable partner that’s well-informed about the tax-advantaged giving options that are still available.
- Personalize outreach based on asset composition. UHNW asset allocation varies widely from individual to individual. For example, a tech founder’s wealth is very different from a retired CEO’s, so your conversation about gift timing, structure, and impact should be personalized accordingly. The former might be an ideal candidate for a stock gift to avoid capital gains, while the latter might prefer a charitable remainder trust for income.
- Leverage your network. UHNW investors sit at the center of a vast web of wealth through boards, business associations, and professional affiliations. Having a deep, clear understanding of a donor’s wealth and motivations will deepen their engagement, and open as gateways to their entire circle.
Unlock more major gifts with Altrata
The landmark OBBBA has ushered in a new era of tax strategy, philanthropy, and UHNW financial planning. To thrive, fundraisers need to look past traditional markers they’ve relied on in favor of real wealth intelligence. Of course, this information is difficult to take action on at scale — or even discover at all.
This is where Altrata shines.
Our comprehensive platform features the world’s leading database of the ultra wealthy with up-to-date, 360 degree profiles on net worth, asset allocation, personal interests, giving history, and more — as well as deep insight into prospects’ networks, affiliations and connections as a visual relationship map. Leveraging our expertise in real wealth intelligence frees your team to focus on making meaningful, purpose-based connections with the UHNW investors who can meaningfully impact your cause.
Want to help your team build a sustainable pipeline of high-capacity donors in 2026? Schedule a demo, today.