2026 Charitable Giving Tax Changes
How the 2026 Charitable Giving Tax Changes May Impact You Today
Congress’ One Big Beautiful Bill Act includes several charitable-giving tax changes scheduled to begin in 2026. While these changes don’t take effect immediately, they may influence decisions you’re considering before the end of 2025. Here is a summary of what’s coming and how it may affect your planning.
We encourage you to speak with your tax professional to understand how these changes apply to your situation.
For non-itemizers
If you typically take the standard deduction, you will now be eligible to deduct giving to qualified charities of up to
$1,000 for single filers
$2,000 for those married filing jointly.
Since the 2017 Tax Cuts and Jobs Act increased the number of standard-deduction filers, many donors have not received a tax benefit for giving. This change brings that benefit back - starting in 2026. For most non-itemizers, there is no immediate action to take for 2025, but it may impact how you plan your giving next year.
For itemizers
If you itemize or are in a higher tax bracket, the three changes below may have more significant implications for your tax planning.
A New Floor for Deductible Giving.
Beginning in 2025 only the portion of your giving above .5% of your Adjusted Gross Income (AGI) will be deductible.
Example: If you have an AGI of $300,000, the first $1,500 you gave would not be deductible (for quick reference, the floor goes up $500 for every $100k in AGI).
A Reduced Benefit for Top Bracket Earners.
For those in the 37% tax bracket (taxable income of at least $640,600 for single filers or $768,700 for married couples), the charitable deduction rate drops by 2 percentage points, reducing the benefit from 37% to 35%
New Floor for Corporate Giving.
Corporations will also now have a giving floor of 1%. The first $1,000 given per $100k of taxable income is not deductible. The existing 10% cap and 5-year carry-forward remain unchanged.
What This Means for 2025
If you itemize or are in a higher tax bracket, 2025 may be a valuable year to take advantage of the current, more favorable tax laws. Many donors are considering:
Accelerating some giving into 2025
Establishing or contributing to a Donor-Advised Fund (DAF)
Exploring other strategies to optimize charitable deductions under current rules
Your tax or financial advisor can help you determine the best approach for your goals and circumstances.
We are so grateful for the generous partnership of people like you help to create life-changing pathways for people experiencing homelessness, hunger, addiction, or abuse. If you have questions or want to discuss your giving priorities for 2025 and beyond, I would love to talk.
Thank you!
Luke Cirillo, MBA, CFRE
Director of Advancement
Email: Lukec@ugmportland.org