July 16, 2025
The Big Beautiful Bill Includes a 1% corporate donation threshold creating new incentives – and responsibilities – for. nonprofits to reignite strategic partnerships with the private sector.
In a transformative move for the nonprofit and philanthropic sectors, the recently passed “Big Beautiful Bill” includes a groundbreaking provision: corporations with assets exceeding $10 billion are now eligible for tax incentives when they donate at least 1% of their net profits to charitable causes. It’s a policy shift that could unleash billions of dollars in new giving, if nonprofits are ready to meet the moment.
This 1% threshold isn’t just a number. It’s a call to action. For years, corporate philanthropy has lagged behind individual giving and foundation grants, often confined to piecemeal sponsorships or narrow CSR initiatives. But now, as the private sector gains a financial incentive to scale its charitable footprint, nonprofits must realign their development strategies to seize the opportunity.
Why This Matters Now.
Unlike previous tax incentives that were largely donor-centric, this policy directly encourages companies to become proactive, high-level contributors to social good. At a time when public trust in institutions is fractured and communities are facing complex challenges—from climate change to mental health to housing insecurity—corporations are being handed a clear mandate: step up, or fall behind.
Nonprofits that can speak the language of business, deliver measurable impact, and craft innovative partnerships are uniquely positioned to become go-to allies in this new giving era.
Rethinking Corporate Fundraising in the 1% Era.
Here are five ways nonprofits can refocus and reenergize their corporate fundraising strategies:.
1. Lead With Impact, Not Just Mission
Corporations will now be more motivated to show shareholders, consumers, and regulators that their giving has tangible results. Nonprofits should elevate storytelling with robust data, clear KPIs, and outcomes that align with business objectives—be it workforce development, sustainability, or community resilience.
2. Create Tiered, Scalable Giving Programs
A one-size-fits-all approach won’t work. Develop strategic partnerships that range from six-figure sponsorships to multi-year investments, making it easier for companies to say “yes” to contributing at least 1% or more. Offer tiers based on impact visibility, engagement opportunities, and recognition.
3. Integrate DEI, ESG, and Employee Engagement
The most successful partnerships will go beyond check-writing. Look for ways to embed your work into a company’s broader values—such as offering volunteer days, co-developing DEI programs, or partnering on shared ESG goals. Let your nonprofit be the solution to their corporate challenges.
4. Target the Top 500—but Don’t Forget the Rest
While the bill targets mega-corporations, this policy is setting a new benchmark for what ethical corporate giving looks like. Use the 1% mark as a persuasive tool in conversations with regional and mid-size companies—those aspiring to operate like the Fortune 500.
5. Build an Advocacy and Education Campaign
Some companies may not yet understand how the new tax incentive works—or how to make the most of it. Consider launching a thought leadership campaign to educate your corporate network about the new policy, its benefits, and how partnering with your organization is a win-win.
Investing in Corporate Fundraising Is a Smart Bet
Now is the time for nonprofits to double down on corporate fundraising capacity—whether that means hiring dedicated staff, upgrading partnership infrastructure, or training teams to navigate corporate relationships more strategically.
With billions in potential funding on the table, the return on investment could be exponential. Organizations that act early will not only secure critical resources but also shape the standards and expectations of this new corporate giving landscape.
A New Social Contract
This policy reflects a deeper cultural shift: the public is demanding that corporations act not just as economic engines, but as social stewards. Nonprofits now have a rare window to redefine what corporate philanthropy can look like—more strategic, more equitable, and more deeply connected to community impact.
For nonprofit leaders, this is a wake-up call—and a welcome one. It’s time to move from transactional sponsorships to transformational partnerships. It’s time to treat corporate fundraising not as a secondary revenue stream, but as a powerful driver of mission and momentum.
Disrupt the process so you can support the mission and focus your work. Let’s protect the industry with a strong NGO Strategy. Contact me directly, to explore your immediate options.
The 1% giving incentive is here. Let’s make it count.
Previous Article: Elections: A Ticking Time Bomb for Nonprofits
NGO Strategy 
Leave a comment