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Hilton Head Preparatory School What's New In Charitable Giving
Hilton Head Preparatory School What's New In Charitable Giving
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What's New In Charitable Giving
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Giving
What's New In Charitable Giving
The One Big Beautiful Bill Act (OBBBA), signed into law on July 4, 2025, will significantly reshape charitable giving incentives beginning in 2026. Here’s what Hilton Head Prep families, alumni, and friends need to know as you plan your philanthropic support.
If You Take The Standard Deduction
Good news! Your generosity may go even further starting in 2026.
OBBBA introduces a new “above-the-line” charitable deduction, allowing you to deduct up to:
$1,000
in qualifying charitable gifts for
single filers
$2,000
for
married couples filing jointly
This deduction is available even if you take the standard deduction, making charitable giving more accessible and rewarding.
Recommended actions for Prep supporters who take the standard deduction:
Make a Prep Pride Fund pledge now to be paid in 2026, or
Set up a monthly recurring gift - an $84/month gift reaches the full $1,000 deductible amount.
If You Itemize Your Deductions
Beginning in 2026, OBBBA places new limits on the tax benefits of charitable giving. Two changes will reduce the overall value of itemized deductions:
A 35% cap on the total value of itemized deductions (including charitable gifts).
A new 0.5% Adjusted Gross Income (AGI) floor, meaning only the portion of your charitable giving above this threshold is deductible.
To maximize your charitable tax savings, you may want to act before these rules take effect.
Recommended actions for Prep supporters who itemize:
Make your 2025–26 Prep Pride Fund gift before December 31st.
Consider paying off existing pledges early (capital or endowment)
Contribute to your Donor Advised Fund (DAF) before December 31 to lock in current 2025 rules while maintaining flexibility to support Hilton Head Prep and other causes later.
Other Ways To Support Hilton Head Prep
Charitable giving strategies that may help you reduce tax exposure, regardless of which deduction method you use:
Gift of Appreciated Securities (Stock Transfer)
Donating appreciated stock allows you to:
Avoid capital gains taxes
Deduct the full fair market value
A meaningful win for you
and
Hilton Head Prep.
IRA Charitable Distribution (QCD)
If you’re age 73 or older, you may make a Qualified Charitable Distribution (QCD) from your IRA directly to Hilton Head Prep:
Excludes the distribution from taxable income
Counts toward your Required Minimum Distribution (RMD)
Avoids the new AGI floor and itemized deduction cap
Especially advantageous for donors who no longer itemize
Want to get started?
Hilton Head Prep's EIN number is 23-7126823, and you can find stock transfer instructions and other ways to give on
our website
If you have any questions, please reach out to
Leslie Hart
(Director of the Prep Pride Fund) or
Margot Brown
(Chief Advancement Officer)
Every gift makes a difference for Prep's students, faculty, and programs.
Hilton Head Preparatory School
8 Fox Grape Road
Hilton Head Island, SC 29928
843-671-2286
©2018 Hilton Head Preparatory School. All Rights Reserved