What’s Changing in 2026 — and What It Means for Your Gift

The Basics: New Federal Tax Rules for Charitable Giving

Beginning with the 2026 tax year, the rules for deducting charitable donations will shift for many donors.

Here are the key changes:

  • For people who don’t itemize deductions (i.e. most taxpayers): Starting in 2026, you’ll be able to claim a modest “above-the-line” deduction for cash donations to qualified charities — up to $1,000 if you file as a single person, or $2,000 for married couples filing jointly.

  • For individuals who itemize deductions: Charitable gifts will only be deductible to the extent that they exceed 0.5% of your adjusted gross income (AGI). That means small donations may no longer reduce your taxable income under itemizing.

  • For higher-income donors (top federal bracket): If you currently benefit from a 37% marginal tax rate, the new law will limit the value of your charitable deduction to 35%. That slightly reduces the tax benefit of every dollar donated.

  • The “old” deductions still apply — but under new limits: If you itemize, the longstanding limit that cash gifts to public charities can be deducted up to 60% of your AGI remains intact under the 2026 law.

Why This Makes 2025 a Unique Giving Year

  • If you normally itemize and give larger gifts, 2025 offers a final window to make donations under the more generous “old” rules. Delaying until 2026 may reduce the deductible benefit.

  • If you don’t itemize, the new law opens a modest deduction opportunity — which could make charitable giving somewhat more tax-efficient starting in 2026.

  • For modest/gift-level giving, the 0.5% floor for itemizers may mean small gifts no longer reduce taxable income — so donors may reevaluate how and when they give.

  • For high-income supporters, while giving remains deductible, the slight reduction in deduction value (from 37% → 35%) may influence how much they choose to give — or when.

For nonprofits (like ours), this creates a rare moment: a “last call” under existing rules that could encourage many donors — especially those who itemize — to make their gifts in 2025.

What You Should Know before You Give

  • The new deduction for non-itemizers applies only to cash gifts to qualified public charities. It does not cover gifts to donor-advised funds (DAFs) or private foundations.

  • If you give appreciated assets (stock, real estate, etc.) instead of cash — or to certain types of nonprofits — different rules still apply, and deductibility for those may be more complex under the new law.

  • “Bunching” — i.e. combining multiple years of giving into 2025 — may make sense for those who plan to donate annually. This helps clear the 0.5% floor (for itemizers) and maximize deduction value under the old rules.

  • As always: tax law is complex, and the exact benefit depends on your income, filing status, types of gifts, and whether you itemize. Consider consulting your tax or financial advisor for guidance.

Frequently Asked Questions (FAQ)

Q: I don’t itemize. Does that mean my small gift will be deductible in 2026?
A: Yes — beginning in 2026 you’ll be able to deduct up to $1,000 (single) or $2,000 (joint) for cash gifts to qualified public charities.

Q: What if I normally itemize and give $2,000 a year — will that still be deductible?
A: Possibly — but under the new rule, only the portion of your total charitable giving that exceeds 0.5% of your AGI will be deductible. For many modest donors, small gifts may no longer yield any tax benefit.

Q: Does this affect gifts to donor-advised funds (DAFs)?
A: The new “above-the-line” deduction for non-itemizers specifically excludes gifts to DAFs (and private foundations).

Q: If I’m a high-income donor, should I give this year instead of waiting?
A: It may be advantageous. In 2025, deductions are still calculated at your full marginal rate. Come 2026, if you’re in the top bracket, deductible benefit per dollar will be slightly reduced.

Q: Does this change affect corporate giving?
A: Yes — for corporations, a new “floor” takes effect in 2026. Charitable deductions will only apply to gifts that exceed 1% of the corporation’s taxable income.

Further Reading

For those who want to explore the 2026 charitable-giving changes in more depth, these trusted third-party sources offer clear, accessible explanations:

Giving USA: “Adapting to Charitable Tax Changes: What Nonprofits Need to Know for 2026 and Beyond”
A nonprofit-sector overview that lays out the upcoming changes in straightforward terms. Especially helpful for understanding how the new rules affect donors who itemize — and those who don’t.

Northern Trust: “The OBBA’s New Rules for Charitable Contributions”
A plain-English breakdown of the new “floors” for deductions, with clear examples showing which gifts will (and won’t) be deductible starting in 2026.

WilmerHale: “New Charitable Giving Rules for 2026 May Require 2025 Planning”
A concise, accessible summary from a major law firm. Useful for donors considering larger gifts or multi-year planning before the rules shift.

Holland & Knight: “Year-End Charitable Planning: Big Changes Coming for 2026”
Explains the upcoming restrictions and why some donors may choose to complete their giving in 2025. Easy to follow, even if you’re not a tax professional.

Fidelity Charitable: “How the New Charitable Tax Rules Affect Giving Strategies”
A donor-focused piece with special emphasis on DAFs and non-itemizers. Helpful for understanding how different types of gifts are treated.

Bipartisan Policy Center: “How the New Charitable Deduction Floors Work”
Clear, neutral, and written for a general audience. Breaks down the new 0.5% and 1% deduction floors in simple terms.