Many people who support the Nebraska FFA Foundation are also business leaders—owners, executives, and decision-makers who think carefully about how both their personal and corporate resources can support the NeFFA Foundation and other causes that matter to our community’s quality of life.
On January 1, 2026, the tax rules for corporate charitable deductions changed under the One Big Beautiful Bill Act (OBBBA). The new law introduced a 1% taxable income “floor” that corporations must exceed before any charitable contributions become deductible. This means that routine or modest corporate gifts may not generate a tax benefit if total contributions do not exceed the 1% threshold. At the same time, the pre-existing 10% “cap” on corporate charitable deductions remains in place, so companies will need to navigate both limitations together, complicating their giving strategies.
If you are a business leader impacted by these changes, now is the time to check in with your tax advisors. The good news is that charitable giving can remain an effective part of a company’s broader financial and community engagement strategy. The key is simply to stay informed and proactive. Here are three points to keep in mind as you plan your company’s support of Nebraska FFA Foundation and other causes:
Consider how your company structures its support. If your business regularly supports the Nebraska FFA Foundation, it may be helpful to talk with your tax advisors about the structure of those contributions. In some cases, companies make straightforward charitable donations that qualify for the corporate charitable deduction. In other situations, such as event sponsorships or marketing partnerships, payments may be structured differently depending on the business benefits involved. Your advisors can help determine the most appropriate approach based on your company’s goals and the applicable tax rules.
Consider “bunching” strategies. Timing has become even more important under the new laws. Your tax advisor may recommend that your company consider accelerating or grouping charitable gifts into particular years to maximize deductions. This strategy, sometimes called “bunching” contributions, can help ensure that charitable gifts continue to produce meaningful tax benefits even with the new 1% floor. For business owners who give both personally and through their companies, coordinating those strategies can be especially important.
Explore sponsorships and strategic partnerships. Another area worth discussing with your advisors is the role of long-term corporate sponsorships or marketing partnerships with charitable organizations. Many companies find that supporting community organizations can serve multiple goals at once—strengthening community impact while also raising visibility for the business. Depending on how these arrangements are structured, they may be treated differently for tax purposes than traditional charitable gifts. Your tax advisor can help determine what approach best aligns with your company’s financial and philanthropic priorities.
Tax rules will always evolve. What does not change is the importance of corporate support for the work of Nebraska FFA Foundation and other organizations that help our community stay strong. At Nebraska FFA Foundation, we are deeply grateful for the businesses and business leaders who continue to invest in the work we do together. As you plan for the years ahead, we encourage you to stay in conversation with your tax and financial advisors to ensure your charitable support is structured in the most effective way possible.
And, as always, thank you for being part of the community that makes this work possible.
This material is provided for informational purposes only. It is not intended as legal, accounting, or financial planning advice. Please consult your tax or legal advisor to learn how this information might apply to your own situation.
