Business
With Trump’s tax bill set to dent giving by the wealthy, can middle-class donors make up the difference?
A woman puts money into a Salvation Army red kettle outside of Giant Supermarket in Alexandria, Virginia on November 22, 2023.
Eric Lee | The Washington Post | Getty Images
A version of this article first appeared in CNBC’s Inside Wealth newsletter with Robert Frank, a weekly guide to the high-net-worth investor and consumer. Sign up to receive future editions, straight to your inbox.
New tax laws risk reducing charitable giving by the wealthy next year, economists and academic experts say, leaving less-wealthy Americans to make up the difference.
Under President Donald Trump’s “big beautiful bill,” signed into law in July, several tax benefits for wealthy donors will be reduced. Top earners will also have their effective tax benefit cut from 37% to 35%. The Indiana University Lilly Family School of Philanthropy estimates this cap alone will reduce giving by $4.1 billion to approximately $6.1 billion annually.
In addition, the bill also limits tax incentives for itemizers, who will only be able to deduct donations in excess of 0.5% of their adjusted gross income.
At the same time, the bill also creates new incentives for middle- and lower-income filers to give. Starting next year, roughly 140 million taxpayers who do not itemize will still be able to deduct up to $1,000 in cash donations per filer. About 90% of taxpayers take the standard deduction since it was raised in 2017 during the first Trump administration.
While the tax changes may help broaden the base of giving, making it less dependent on the ultra-wealthy, experts are skeptical that the math will balance out.
Elena Patel, co-director of the Urban-Brookings Tax Policy Center, told Inside Wealth she is not optimistic that middle- and lower-income donors will be able to make up the shortfall as top earners give less.
“The nonprofit sector says that every dollar matters, and so incentivizing small donations from every household could have a meaningful impact for certain kinds of organizations. But the truth is that those kinds of contributions, however, just are not the bulk of charitable giving in the charitable sector,” she said. “That 2-percentage-point reduction [for top earners] might not seem like a big deal, but you have to keep in mind the scale of gifts that are being given among the highest-net-worth individuals in the United States.”
What the ‘K-shaped’ economy means for philanthropy
Charitable giving by American households continues to rise, reaching $392.45 billion last year, per the latest report by the Lilly School of Philanthropy for Giving USA. That’s up 52% since 2014.
But while donations are increasing, fewer Americans are giving as wealthy donors make up an increasing share of philanthropy, according to the university’s research.
Amir Pasic, dean of the Lilly School of Philanthropy, said incentivizing Americans of all income levels to donate is valuable in and of itself.
“We’ve had this general problem of dollars going up but the number of donors going down. This is a positive development because this could really increase the number of donors,” he said.
However, Pasic said, financial stress has limited everyday donors’ ability to give, while wealthier ones have been donating more. The share of Americans who donate dropped from 66.2% to 45.8% between 2000 and 2020, according to the university’s research.
“Economic uncertainty is always worrisome for people’s giving planning,” Pasic said.
This lopsided, or “K-shaped,” economy shows signs of getting worse amid tariff hikes and inflation. Lower- and middle-income consumers are spending less on everything from McDonald’s burgers to flights, while wealthier Americans flex their spending power.
Will the new deduction move the needle?
Economist Daniel Hungerman said he questions whether the new deduction would spur a substantial number of donations or mainly reward taxpayers who would have given anyway.
While the new deduction is larger, at $1,000 per single filer and $2,000 for married joint filers, a similar legislative effort in the ’80s failed to move the needle on charitable giving, he said. A temporary $300 deduction in 2020 spurred by the Covid pandemic only increased charitable donations by 5%, according to the Tax Foundation.
Trump’s tax bill also permanently raises the standard deduction, which significantly dampens charitable giving, Hungerman said. His study estimated that the higher deduction led to a permanent annual drop of $16 billion after the 2017 reforms.
However, raising the cap on the federal deduction for state and local taxes (better known as SALT) may provide some relief, he said. More taxpayers in high-cost states will benefit from itemizing, which encourages donations.
Hungerman said encouraging everyday donors to get in the habit of giving now could lead to higher levels of donating later if they increase their wealth.
“Maybe what is even more compelling to me is the long game, if we can send a message that everybody should give like this, and we change some of these people’s giving behavior,” he said. “Somewhere out there is the Bill Gates of tomorrow.”
What donors can do now
Currently, taxpayers who plan to take the standard deduction would benefit from waiting until 2026 to make donations. However, itemizers and high-income donors will get more bang for their buck by giving before the end of the year.
Robert Westley, senior vice president and regional wealth advisor at Northern Trust, said he is recommending that clients accelerate their donations to this year if they were planning to donate over the next four years.
Filers can only deduct up to 60% of their adjusted gross income for cash donations to public charities per year. The percentage drops to 30% for contributions of long-term appreciated assets like stock or real estate.
However, taxpayers can generally carry forward excess deductions over five years, he said. Still, it’s unclear how much bang they will get for their buck as the IRS has yet to specify whether excess deductions will be subject to the new floor and ceiling on charitable deductions, according to Westley.
For donors who want to give more now but are unsure of how to do so, he said he suggests giving to a donor-advised fund, or DAF. With a DAF, donors get an upfront deduction but can wait to allocate those funds to specific charities. For donors wanting to offload appreciated assets, it is much simpler to donate stock to a DAF than directly to a nonprofit.
Given this year’s stock run up, Westley said many of his clients are looking to donate appreciated stock, especially in tech, to offset gains as well as rebalance their portfolios.
“Their equities have appreciated, and some of them might now represent a higher percentage of the portfolio than their target asset allocation,” he said. “When you donate those risk assets to charity, you get the tax benefit, you don’t realize the gain, and when it’s done you’ve lowered your risk-asset allocation.”
Lawyers and tax planners are still waiting for guidance from the IRS on a bevy of issues stemming from the changes. For instance, it’s still unclear whether deductions will be capped for non-grantor trusts that make charitable donations, according to Westley.
But high-income donors still have many tools at their disposal, he said. Top earners who are 73 and older can effectively reduce their taxable income dollar-for-dollar by giving their required minimum distributions from an IRA to charity.
Westley said this tactic is popular among his retirement-age clients and likely to become even more so with the raised SALT cap. Filers can lower their income to qualify for the enhanced SALT deduction, which maxes out at $40,000 for taxpayers with incomes of $500,000 or less.
“You’re not even dealing with any of the itemized deduction rules,” he said. “There’s no ceiling on the tax benefit and there’s no floor or hurdle to get over for the deduction.”
Business
Gurugram Attracts Rs 86,588 Crore In Real Estate Investments In 2025 As RERA Clears 131 Projects
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Alongside rising investments, Gurugram RERA strengthened regulatory oversight to safeguard homebuyer and investor interests
Gurgaon Real Estate (Representative Image)
Gurugram emerged as one of India’s top real estate investment destinations in 2025, with projects worth Rs 86,588 crore receiving regulatory approvals during the year, according to data from the Gurugram Real Estate Regulatory Authority (Gurugram RERA).
Market observers said the numbers reflect strong investor confidence in the NCR’s largest commercial and residential hub.
Gurugram RERA registered 131 projects in calendar year 2025, representing development potential of 35,455 units across housing and commercial segments.
A striking feature of the data was the dominance of large-ticket projects. Just 28 major developments accounted for investments worth Rs 59,360 crore, highlighting the growing influence of institutional capital and large developers in shaping Gurugram’s property market.
Residential assets continued to attract the bulk of investment interest. Of the total units approved, 31,455 were residential, underscoring sustained end-user demand and long-term confidence in the city’s housing fundamentals.
According to Authority data, the residential mix included 17,405 group housing units, 5,720 mixed land use units, 4,040 residential floor units, 2,122 affordable group housing units, 1,954 units under the Deen Dayal housing scheme, and 214 residential plotted colony units.
Market observers said this diversified supply pipeline indicates capital deployment across both premium and mass segments, helping reduce concentration risk and deepen market resilience.
On the commercial side, Gurugram RERA approved about 4,000 commercial units, of which 168 were dedicated to IT parks, reinforcing Gurugram’s position as a preferred hub for technology firms and Global Capability Centres.
Analysts noted that the combination of office-led employment growth and residential expansion continues to make Gurugram attractive for long-term capital deployment.
Industry experts said the scale of investments approved in 2025 highlights Gurugram’s ability to attract capital despite global uncertainty, supported by infrastructure growth, a strong corporate base and an improving regulatory environment.
“With a large pipeline of approved projects and sustained interest from developers and institutional investors, Gurugram is expected to remain a key real estate investment destination in the coming years,” a Gurugram-based real estate expert said.
Tighter regulatory checks
Alongside rising investments, Gurugram RERA strengthened regulatory oversight to enhance transparency and safeguard homebuyer and investor interests.
“These steps included stricter scrutiny of developer submissions, mandatory site inspections by domain experts, and public consultation through mandatory notices before project registration,” an Authority official said.
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January 16, 2026, 07:44 IST
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National Startup Day highlights India’s thriving startup ecosystem, celebrating innovation, entrepreneurship and job creation driven by founders, unicorns and Startup India mission
National Startup Day 2026 honours Indian startups, entrepreneurs and innovators driving economic growth and job creation.
National Startup Day 2026: India’s startup ecosystem has evolved into one of the world’s most vibrant and promising innovation hubs. To recognise the contribution of entrepreneurs, founders and startups transforming ideas into impactful solutions, National Startup Day is observed every year on January 16 across the country.
Launched by Prime Minister Narendra Modi in 2022, the day celebrates visionary entrepreneurs who play a crucial role in economic growth, employment generation and technological advancement.
National Startup Day serves as a reminder that innovation, backed by determination and policy support, can reshape society and create global impact.
National Startup Day 2026 Theme
The official theme for National Startup Day 2026 is yet to be announced. However, the core focus areas are expected to revolve around:
- Innovation and emerging technologies
- Entrepreneurship and leadership
- Self-reliance (Atmanirbhar Bharat)
- Startup India Mission
- Youth empowerment
- Job creation
How Startups Are Shaping India’s Future
India currently ranks as the third-largest startup ecosystem globally, with over 1.59 lakh startups recognised by the Department for Promotion of Industry and Internal Trade (DPIIT) as of early 2025. Backed by 100+ unicorns, the ecosystem continues to grow rapidly.
Metro cities such as Bengaluru, Hyderabad, Mumbai and Delhi-NCR lead this expansion, while Tier-2 and Tier-3 cities are emerging as new innovation centres, adding diversity and scale to India’s entrepreneurial journey.
Startups across fintech, edtech, health-tech, e-commerce and deep-tech are addressing real-world challenges and gaining global recognition. Technologies like artificial intelligence, blockchain and IoT are increasingly driving innovation, according to Startup India ecosystem reports.
Industry-Wise Startup Impact
DPIIT-recognised startups have generated over 16.6 lakh direct jobs across sectors as of October 31, 2024, strengthening India’s employment landscape.
- IT Services: 2.04 lakh jobs
- Healthcare & Life Sciences: 1.47 lakh jobs
- Commercial & Professional Services: 94,000 jobs
Through the Startup India initiative, the government continues to focus on skill development, funding access, ecosystem collaboration and global outreach.
Key Initiatives Under Startup India
- Capacity building and mentorship
- Outreach and awareness programmes
- Ecosystem development events
- International exposure and global linkages
- Collaboration between startups, corporates and institutions.
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January 16, 2026, 07:00 IST
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The government on Thursday kept petrol and high-speed diesel (HSD) prices unchanged at Rs253.17 per litre and Rs257.08 per litre respectively, for the coming fortnight, starting from January 16.
This decision was notified in a press release issued by the Petroleum Division.
Earlier, it was expected that the prices of all petroleum products would go down by up to Rs4.50 per litre (over 1pc each) today in view of variation in the international market.
Petrol is primarily used in private transport, small vehicles, rickshaws, and two-wheelers, and directly impacts the budgets of the middle and lower-middle classes.
Meanwhile, most of the transport sector runs on HSD. Its price is considered inflationary, as it is mostly used in heavy transport vehicles, trains, and agricultural engines such as trucks, buses, tractors, tube wells, and threshers, and particularly adds to the prices of vegetables and other eatables.
The government is currently charging about Rs100 per litre on petrol and about Rs97 per litre on diesel.
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Gurugram Attracts Rs 86,588 Crore In Real Estate Investments In 2025 As RERA Clears 131 Projects
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