Floor to ceiling: Four factors that will influence corporate giving now and later

by SCF Team | September 1, 2025 | Siouxland Community Foundation Blog, Advisor Resources |

At the Siouxland Community Foundation, we’re proud to partner with local businesses—both large and small—to create charitable giving plans that align with company goals, support employees, and strengthen our community. Many of you give generously to local nonprofits every year, either directly or through a corporate fund here at the foundation.

If you own or lead a business, you may have heard about changes coming to the charitable deduction rules for corporations. These changes will impact how you approach your giving strategy—and we want to make sure you’re prepared.

Here’s what you need to know:

✅ A new “floor” on charitable deductions starts in 2026.
Beginning in 2026, corporations will only be able to deduct charitable contributions that exceed 1% of their taxable income. For example, if your business has $100 million in taxable income, the first $1 million in giving won’t be deductible. Only donations above that threshold will qualify. Many experts worry this shift could reduce corporate giving, which recently reached record highs.

✅ The “ceiling” remains, but things get more complicated.
Corporations will still be limited to deducting up to 10% of taxable income. That means starting in 2026, both the 1% floor and the 10% ceiling apply at the same time. It’s a narrower window for deductions—and it makes planning essential. Carryforwards are still available, but they come with tricky rules.

What does this mean for your company? Two key takeaways:

1. Don’t wait.
   Now is the time to review your company’s giving strategy for the rest of 2025. A corporate donor-advised fund at the foundation may be the smartest way to maximize your deductions before the 1% floor goes into effect.
2. Think about sponsorships.
   Corporate sponsorships of charitable events or programs can often be deducted as marketing expenses—if your business receives a clear benefit such as advertising. These are separate from charitable deductions, but they must be carefully structured and reported on both sides.

At the Siouxland Community Foundation, we’re here to help you navigate these changes, make the most of your giving, and ensure your company’s generosity continues to make an impact in Siouxland.

📞 Let’s start the conversation 712.293.3303. Reach out to our team anytime—we’d love to explore the best strategies for your business.