Federal tax rules that took effect in 2026 may affect how your charitable gifts are treated. Learn more about how you can maximize the impact of your generosity.
Below is a summary with practical planning pointers.*
The Big News: Everyone Can Now Deduct Charitable Gifts
Starting with 2026 tax returns, taxpayers who do not itemize may deduct cash gifts to qualified public charities up to:
- $1,000 for single filers
- $2,000 for married filing jointly
Important: Gifts to donor-advised funds (DAFs), supporting organizations, or private foundations do not qualify for this new universal deduction.
Key Changes by Donor Situation
If You Take the Standard Deduction (about 90% of taxpayers):
- Universal charitable deduction: up to $1,000/$2,000 for eligible cash gifts (2026+).
- Higher standard deduction (2025): $15,750 (single) / $31,500 (married filing jointly), indexed thereafter.
- New seniors’ deduction (2025–2028): an additional $6,000 per eligible person (65+). Available only if you take the standard deduction; income limits apply; this is in addition to the normal “age/blind” add-on amounts under prior law.
Smart move: If you don’t itemize, consider annual cash gifts up to your universal limit—and if you’re 65+, evaluate eligibility for the temporary $6,000 seniors’ deduction.
If You Itemize Your Deductions:
- New 0.5% AGI floor (2026+): Only the portion of your charitable gifts above 0.5% of AGI is deductible.
- Cap for top bracket (2026+): The value of itemized charitable deductions is capped at about 35% even if your marginal rate is higher.
- 60% of AGI limit for cash gifts is permanent.
Smart moves: “Bunch” multiple years of giving into one tax year to clear the 0.5% floor; consider a DAF to time large itemized gifts (note: DAF gifts don’t qualify for the universal deduction); front-load pledges in a chosen year to exceed the floor.
Business Owners:
- Corporate 1% floor (2026+): C-corp charitable deductions are subject to a 1% of taxable income floor for the year. Carryforwards of excess may still apply under existing ceilings.
When Do These Changes Take Effect?
| Change | Effective Date |
|---|---|
| $1,000/$2,000 non-itemizer cash-gift deduction | 2026 tax year |
| 0.5% AGI floor & ~35% cap (top bracket) | 2026 tax year |
| Estate & gift exemption increased to $15M/$30M (indexed) | 2026 tax year |
How We Can Help
- Provide gift acknowledgment letters for tax purposes
- Discuss multi-year pledge arrangements
- Explore planned giving options under the new rules
- Connect you with estate planning resources
Important Reminders
- Keep good records: Save receipts/acknowledgments for all gifts.
- Consult your advisor: Details vary (e.g., SGO eligibility, state participation, seniors’ deduction thresholds).
- Give from the heart: Tax benefits help—but your impact matters most.
*Courtesy of Viken Mikaelian, CEO of PlannedGiving.com, Major Gifts LLC and Philanthropy.org
Smart Moves You Can Make Now
Student Success
Plan for the universal deduction: Non-itemizers can claim $1,000/$2,000 for eligible cash gifts to public charities.
Drive Experiential Learning
Bundle bigger gifts: Combine several years (or use a DAF) to rise above the 0.5% AGI floor when itemizing.
Harness Research Innovation
If you’re 65+ (2025–2028): When taking the standard deduction, review eligibility for the temporary $6,000 seniors’ deduction—and still layer on the universal charitable deduction for cash gifts.
For Corporations
2026+: Structure multi-year pledges so annual giving surpasses the new 1% floor.
Let’s have a conversation. Contact us today.
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