How Platforms & Communities Build Resilient Giving in a New Era

Illustration of a donation box and a legislative document.
This landmark legislation represents the most significant overhaul of charitable giving incentives since the 2017 Tax Cuts and Jobs Act.
Gudsy Team

Gudsy Team

July 11, 2025

Part 5/5 - One Big Beautiful Bill Act and Charitable Giving

The One Big Beautiful Bill Act has ushered in a new era for charitable giving, fundamentally altering the incentives, compliance requirements, and donor landscape for nonprofits across the United States. As the sector adapts to these changes, the role of technology platforms, community engagement, and values-driven strategies has never been more critical. In this final installment, we explore how nonprofits, donors, and giving platforms can foster resilient, sustainable philanthropy—regardless of shifting tax policies.

The New Reality: Less Transactional, More Relational

Why Traditional Incentives Matter Less

With the introduction of a universal deduction for non-itemizers, new floors for itemized and corporate giving, and caps for high-income donors, tax incentives are no longer the primary driver for many charitable gifts. Research after the 2017 Tax Cuts and Jobs Act showed that while tax-motivated giving dropped, donors driven by values, community, and impact continued to give at high rates—even when incentives changed.

The Rise of Mission-First Giving

Donors increasingly seek transparency, impact, and authentic connection with the causes they support. This shift is amplified by digital platforms that make it easier to discover, research, and engage with nonprofits whose missions align with their values.

How Platforms Foster Resilient Giving

1. Unified Discovery and Personalization

Modern giving platforms allow donors to:

  • Search for organizations by cause, geography, or impact area
  • Receive personalized recommendations based on interests and past giving
  • Access transparent information about nonprofit effectiveness and financials

This unified discovery experience helps donors find causes that resonate deeply, increasing the likelihood of sustained support.

2. Transparent Impact Reporting

Platforms are making it possible for nonprofits to:

  • Share real-time updates, stories, and outcomes with supporters
  • Provide dashboards showing the cumulative impact of donor communities
  • Offer feedback loops so donors see the results of their generosity

Transparent impact reporting builds trust and encourages recurring, mission-driven giving.

3. Community Building and Peer Influence

Online communities and social features enable donors to:

  • Join giving circles or affinity groups
  • Participate in crowdfunding campaigns or challenges
  • Celebrate collective milestones and shared achievements

Research shows that peer influence and a sense of belonging can significantly increase donor retention and gift size, even in the absence of strong tax incentives.

4. Flexible Giving Tools

Platforms now offer:

  • Recurring giving options (monthly, quarterly, annual)
  • Donor-advised funds for strategic, multi-year philanthropy
  • Tools for “bunching” and scheduling gifts around personal liquidity events

These features help donors manage their giving for both impact and financial efficiency, while providing nonprofits with more predictable revenue streams.

Best Practices for Nonprofits in the Platform Era

1. Emphasize Values and Impact

  • Highlight stories of real change, not just tax benefits
  • Share clear, measurable outcomes
  • Align messaging with the passions and priorities of your supporter base

2. Engage Donors Year-Round

  • Use digital tools to maintain regular communication, not just during campaigns
  • Offer virtual events, behind-the-scenes content, and volunteer opportunities
  • Recognize and celebrate all supporters, regardless of gift size

3. Leverage Data for Personalization

  • Use platform analytics to understand donor preferences and behaviors
  • Tailor outreach and stewardship to individual interests and engagement patterns

4. Collaborate and Build Coalitions

  • Partner with other organizations for joint campaigns or shared impact goals
  • Participate in sector-wide initiatives that amplify collective action

Best Practices for Donors

  • Seek out platforms and organizations that are transparent about their impact
  • Consider setting up recurring gifts or using donor-advised funds for long-term support
  • Engage with nonprofit communities—join giving circles, attend events, and share your experiences
  • Focus on causes that align with your values and where your contributions make a tangible difference

The Future: Resilient Giving in a Changing World

The One Big Beautiful Bill Act may have changed the financial calculus for some donors, but it has also accelerated the sector’s evolution toward community, transparency, and shared purpose. Platforms that prioritize these values—by making giving easy, meaningful, and connected—will be essential partners for both nonprofits and supporters in the years ahead.

Organizations that build authentic relationships, demonstrate impact, and adapt to the needs of a diverse donor base will not only survive this transition, but thrive—ensuring that generosity remains a powerful force for good, regardless of the policy landscape.

Sources:

  1. Indiana University Lilly Family School of Philanthropy. “Tax law change caused U.S. charitable giving to drop by about $20 billion in law’s first year, new study shows.” July 29, 2024. https://philanthropy.indianapolis.iu.edu/news-events/news/_news/2024/tax-law-change-caused-us-charitable-giving-to-drop-by-about-20-billion-new-study-shows.html
  2. National Bureau of Economic Research. “Tax Incentives for Charitable Giving: New Findings from the TCJA.” NBER Working Paper 32737. July 29, 2024. https://www.nber.org/papers/w32737
  3. Council on Foundations. “One, Big, Beautiful Bill: Impact on Philanthropy.” July 8, 2025. https://cof.org/page/one-big-beautiful-bill-impact-philanthropy
  4. Brookings Institution. “One Big, Beautiful Bill complicates charitable giving.” June 6, 2025. https://www.brookings.edu/articles/one-big-beautiful-bill-complicates-charitable-giving/
  5. Lilly Family School of Philanthropy. “The 2023 U.S. Generosity Report.” https://philanthropy.iupui.edu/research/current-research/generosity-index.html
  6. Proskauer Tax Talks. “One Big Beautiful Bill: Update on Provisions for Nonprofits.” June 16, 2025. https://www.proskauertaxtalks.com/2025/06/one-big-beautiful-bill-update-on-provisions-for-nonprofits/