What Donors Need to Know About New Charitable Giving Tax Provisions in 2026

New tax rules taking effect in 2026 may affect how you give, how much of your generosity is tax-deductible, and which charitable giving strategies make the most sense for you.

Charitable giving is about making a difference in the causes and communities we care about. For many donors, tax considerations are also part of planning their philanthropy.

New tax provisions taking effect with the 2026 tax year introduce changes to how individuals can deduct charitable contributions. Some changes may create new opportunities for donors who take the standard deduction, while others may affect the tax benefits available to those who itemize deductions.

Understanding these updates can help you make informed decisions about your giving and plan your charitable contributions with confidence.

1. A New Charitable Deduction for Donors Who Take the Standard Deduction

Beginning with the 2026 tax year, taxpayers who take the standard deduction may once again be able to deduct certain cash contributions to eligible charities.

The new provision allows eligible taxpayers to deduct up to:

• $1,000 for single filers.
• $2,000 for married couples filing jointly.

This provision is permanent under the new law, and the deduction limits are not adjusted for inflation.

Previously, taxpayers who took the standard deduction generally could not claim an additional federal income tax deduction for their charitable gifts. This change creates a potential tax benefit for donors who give to charity but do not itemize their deductions.

What does this mean for donors?

If you typically take the standard deduction, your charitable gifts may now offer an additional tax benefit. This could include cash donations to eligible charities, such as gifts made to support a friend or loved one's fundraising efforts.

However, not all contributions qualify. For example, donations to donor-advised funds and private non-operating foundations are excluded from this deduction. Eligibility requirements and other limitations apply.

If you have not previously considered the tax implications of your charitable giving because you take the standard deduction, this may be a good time to revisit your approach.

2. A New Threshold for Charitable Deductions for Itemizers

For taxpayers who itemize deductions, a new rule beginning in 2026 establishes a threshold for deductible charitable contributions.

Under this provision, only the portion of a taxpayer's aggregate charitable contributions that exceeds 0.5% of adjusted gross income (AGI) may be deducted.

For example, consider a married couple with an AGI of $300,000. Under the new rule, the first $1,500 of their aggregate charitable contributions would not be deductible. Only eligible contributions above that threshold could qualify for a charitable deduction, subject to other applicable limitations.

What does this mean for donors?

For donors who itemize, the new threshold may make the timing and size of charitable gifts more important when planning for tax efficiency.

One strategy to discuss with a financial or tax advisor is bunching. Rather than making similar-sized donations every year, a donor may choose to combine several years of planned giving into a larger contribution in one tax year. Depending on the donor's circumstances, this approach may help maximize the tax benefits of itemizing.

The right strategy will depend on your charitable goals, financial circumstances, and applicable tax rules. Your giving plan should continue to reflect the causes you care about most.

3. A Limit on the Tax Benefit for Some High-Income Donors

Beginning with the 2026 tax year, another provision limits the tax benefit of itemized deductions, including eligible charitable deductions, for taxpayers in the highest federal marginal income tax bracket of 37%.

For these taxpayers, the tax benefit of itemized charitable deductions is effectively capped at 35%.

Consider a hypothetical individual with an AGI of $1 million who makes $20,000 in charitable contributions. Under the new rules, the 0.5% AGI threshold means $5,000 of the contribution is not deductible. The remaining $15,000 may qualify for a deduction, subject to applicable rules. With the 35% limit on the tax benefit, the resulting tax savings would be $5,250, compared with $7,400 under the hypothetical scenario without these new provisions.

This change applies to itemized deductions for taxpayers in the top tax bracket. It does not eliminate the separate deduction available to eligible non-itemizers for qualifying cash contributions of up to $1,000 for single filers or $2,000 for married couples filing jointly.

What does this mean for donors?

If you are a high-income donor who itemizes deductions, it may be worthwhile to review your charitable giving plans with a qualified tax professional. Strategies such as bunching contributions or adjusting the timing of larger gifts may help you evaluate how to make the most of the available tax benefits under the new rules.

Planning Your Giving in 2026 and Beyond

These changes are a useful reminder that thoughtful charitable planning can help align your generosity with your financial goals.

As you consider your giving for 2026 and future years, you may want to:

• Review your current approach. Determine whether you typically take the standard deduction or itemize, as this affects which provisions may apply to you.
• Consider the timing of your gifts. Depending on your circumstances, making larger contributions in selected years may offer advantages over spreading gifts evenly across multiple years.
• Talk with a tax professional. A qualified advisor can help you understand how the new provisions apply to your situation and evaluate appropriate charitable giving strategies.
• Keep your charitable goals at the center. Tax benefits can be one consideration in your giving decisions, alongside the causes, organizations, and communities you want to support.

Thank You for Making a Difference

Your generosity helps sustain the work that matters to our community. As tax rules evolve, we encourage you to stay informed and seek professional guidance so you can make charitable giving decisions that are right for you.

Whether you give annually, contribute to a special campaign, or are considering a larger gift, your support matters. We are grateful to have you as part of our community of donors and for the difference you make through your generosity.

Please note: This article is intended for general educational purposes only and does not constitute tax, legal, or financial advice. Tax rules and individual circumstances vary. Please consult a qualified tax professional regarding your specific situation.