Investing in Our Community: A Call to Action for a New Era of Giving
By Laura Moody, Founding Partner - Purpose Possible Published in Rough Draft Atlanta - September 16, 2025The "One Big Beautiful Bill" (OBBB), signed into law in July, will usher in a new era for corporate giving, with implications that will ripple throughout our community. While the legislation may be intended to generate tax revenue, it presents a significant challenge to the vital work of nonprofits in Atlanta and across Georgia.
Georgia's nonprofit sector is a powerful economic force. With more than 37,000 nonprofit organizations, the sector employs over 576,000 Georgians, making it a top-three employer in the state. These organizations, from major hospitals and universities to local arts centers and human service providers, generate billions in revenue and are essential economic infrastructure, not just a charity. For example, the nonprofit arts and culture sector in Georgia alone generates over $1.27 billion in economic impact and supports nearly 20,000 jobs.
Nonprofits fill crucial gaps that neither the private sector nor the government can fully address. They are on the front lines, providing services such as job training, healthcare, and food assistance, which are necessary to a healthy and productive workforce. For instance, the Midtown Assistance Center provided over $700,000 in emergency assistance in a single year, preventing evictions and utility disconnections for families in crisis.
Starting January 1, 2026, the OBBB introduces a new 1% floor for corporate charitable deductions. This means companies must now donate at least 1% of their profits before they can claim any tax deduction for their giving. This change is projected to cause a substantial decline in corporate donations, with one analysis estimating a loss of around $4.6 billion in 2026 alone.
The new rules may also lead to "bunching" behavior, where companies make large, infrequent donations to meet the deduction threshold, leaving nonprofits to face unpredictable "feast or famine" funding cycles.
To ensure the continued health of our nonprofit sector, both business leaders and community members must take a proactive approach.
Companies should:
Exceed the Floor: While the tax floor is a new consideration, remember that tax treatment isn't the only motivation for corporate giving. Good corporate citizenship is good business because it elevates public image, boosts employee engagement, and builds connections with influential stakeholders. So, how can companies not only meet but exceed the 1% floor to ensure a lasting, positive impact on the community?
Be Strategic: Move beyond a reactive approach to philanthropy. Consider reclassifying some giving as business expenses, like marketing sponsorships, workforce development, or employee retention.
Utilize Foundations: Leverage corporate foundations and donor-advised funds to maintain a consistent giving schedule, smoothing out the "bunched" contributions to ensure a reliable flow of support for your partners.
Consider Executive Giving: For smaller businesses, it may be more tax-advantageous for executives to increase their personal giving to meet the company's charitable goals.
Power Over Policy: Engage with state legislators to lobby for greater public funding to support these essential services that fill the gaps left by the private sector and government. Leverage your power and presence to be in "the room where it happens," in spaces where nonprofits can't.
For Nonprofits:
Start Talking Now: Reach out to your corporate partners today to form a plan for their continued support and partnership.
Show Your Impact: Clearly articulate the non-financial value you bring to corporate partners, such as an engaged workforce.
Build Relationships: Cultivate deeper relationships with business partners, working together to address community needs in innovative ways.
The OBBB presents a pivotal moment for corporate giving in our community, but we have the opportunity to turn a challenge into a catalyst for change. By embracing a proactive and strategic approach to philanthropy, we can ensure that our city and state not only survive but also thrive. We hope the corporate community comes together to support these vital needs in a significant way that can be celebrated at next year's CVC of Atlanta IMPACT Awards.
