Trump’s new tax policies will cut the wealthy’s philanthropy by over $4 billion—and middle-class donors can't match the donations of MacKenzie Scott

Rich mega-donors like MacKenzie Scott have been pumping hundreds of millions of dollars into philanthropic causes—but Trump’s new tax policies could put billionaire charity in jeopardy. And America’s middle class won’t be able to pick up the pieces.

President Donald Trump’s “ One Big Beautiful Bill ,” signed into law this July, will limit tax benefits for wealthy donors starting in 2026. The new ceiling will cut the effective tax benefit from 37% to 35%. The legislation also suppresses tax breaks for itemizers—they’ll only be able to deduct donations in excess of 0.5% of their adjusted gross income.

Now, philanthropic organizations and research institutions are waving the warning sign: It’s estimated that the 35% limit will reduce donations by at least $4.1 billion, and as much a