Engaging purpose-driven companies

A new year is right around the corner! As you look ahead to 2026, you’re facing the possibility that it may be more challenging to secure corporate donations than in the past. Here’s why:

The One Big Beautiful Bill Act (OBBBA) introduced a new 1% taxable income “floor” that corporations must exceed before any charitable contributions become deductible. This means that routine or modest corporate gifts will no longer generate a tax benefit unless they surpass that threshold, making philanthropy a less financially incentivized activity for many companies.

At the same time, the existing 10% cap on corporate charitable deductions remains in place, so companies will need to navigate both limitations together, complicating their giving strategies.

As a result, some companies may delay or reduce their charitable support, prioritize fewer but larger gifts, or shift their giving toward sponsorships classified as marketing expenses rather than charitable donations. Understanding this changing landscape will be essential for you and other nonprofits as you plan donor engagement and corporate outreach in the year ahead.

In light of upcoming changes, it’s more important than ever for your team and board to seek out companies that integrate a well-defined social purpose into their business operations and strategy. These companies are more likely to view their philanthropic partnerships as strategic investments rather than simply transactional gifts. Here’s how you can make this work for you:

As you meet with corporate leaders, be sure to mention research signaling that some purpose-driven companies post up to 25% higher revenue and up to 22% higher pre-tax profit than those that don’t focus on purpose.

Approach purpose-driven companies by positioning your conversation not simply as a funding request but as a collaborative opportunity: alignment between the company’s business purpose and your community impact.

Discuss specific opportunities for a company’s support to help boost the company’s brand and public image; enhance employee engagement, recruiting efforts, and retention; and most importantly, achieve meaningful results in our community where the company’s employees live and work.

As always, lean on the team at Kitsap Community Foundation as a sounding board! We offer a wide range of charitable giving tools for businesses of all sizes, and we are happy to help structure gifts to your organization when a company would like to establish a corporate fund, set up funds for employees, and enable executives to donate a wide variety of assets.

We look forward to hearing from you!