Corporate Citizenship in Transition: Lessons from 2025, Planning for 2026
Summary
This report, based on a survey of more than 80 corporate citizenship and philanthropy leaders at US and multinational firms, outlines how corporate giving evolved in 2025 and what companies are planning for 2026. It finds that budgets largely held steady but face new pressures from tax-law changes, increased federal scrutiny (particularly of DEI-related programmes), and sharp funding volatility for non-profit partners.
Key shifts include a new tax deduction floor that changes deductibility calculus, greater legal and compliance oversight of grants, and a range of corporate responses to non-profit funding losses — from unrestricted grants to portfolio trimming. The piece offers practical steps for finance, legal and citizenship teams to plan for 2026.
Key Points
- Most corporate citizenship budgets were broadly stable in 2025; roughly one in five leaders expect cuts in 2026 as economic and strategic uncertainty persists.
- The 2025 budget reconciliation measure introduced a 1% floor: only aggregate charitable contributions above 1% of taxable income now qualify for deduction, complicating timing and structure of giving.
- Federal scrutiny of DEI has influenced giving decisions for over half of respondents, prompting many to scale back or reframe identity-based programmes and emphasise universal themes such as education and economic opportunity.
- Governance tightened: about one-third of companies now require senior or legal approvals for contested grants and 60% report closer coordination with legal and compliance teams.
- Two-thirds of corporate respondents reported their non-profit partners lost government funding in 2025, producing layoffs, programme cuts and capacity strain; corporate responses have included unrestricted funding, in-kind support and bridge capital.
- Practical recommendations include: engage CFOs and tax teams early, scenario-plan event giving, refine due diligence and approval thresholds, and offer multiyear or flexible funding to strengthen partner resilience.
Context and Relevance
For anyone involved in corporate social responsibility, philanthropy, legal or finance, the report captures how policy, legal risk and funding volatility are reshaping charitable strategies. It ties recent tax and regulatory shifts to concrete programme decisions and partner impacts, and it highlights a broader trend: corporate citizenship is now more tightly integrated with governance, risk and core business strategy than in prior years.
Why should I read this
Quick version: if your job touches CSR, grants, legal or finance, this saves you time. It explains the new 1% deductibility wrinkle, why DEI-linked programmes are being reframed, and what peers are doing to shore up non-profit partners — plus it lists tactical next steps you can use in planning for 2026. No fluff, just the actions and risks you need to know now.
