Tax & Giving Update

On July 4, 2025, the One Big Beautiful Bill Act became law. Several provisions affect charitable giving beginning with 2026 tax years.

The Big News: Non-Itemizers Can Deduct Cash Gifts (Starting 2026)

  • Deduct up to $1,000 (single) or $2,000 (married filing jointly) for cash gifts to public charities even if you take the standard deduction.
  • Not eligible: gifts to donor-advised funds (DAFs), supporting organizations, or most private (non-operating) foundations.

Key Changes by Donor Situation

If You Take the Standard Deduction

  • Universal charitable deduction (2026+): Up to $1,000/$2,000 for eligible cash gifts.
  • Higher standard deduction (2025): $15,750 single / $31,500 MFJ / $23,625 HoH; indexed thereafter.
  • New seniors’ deduction (2025–2028): Additional $6,000 per eligible person (65+).
Smart move: If you don’t itemize, consider annual cash gifts up to your universal limit. If you’re 65+, check eligibility for the temporary $6,000 deduction.

When Do These Changes Take Effect?

ChangeEffective Date
$1,000/$2,000 non-itemizer cash-gift deduction2026 tax year
0.5% AGI floor & ~35% cap2026 tax year
K–12 SGO federal credit2027 tax year
Estate & gift exemption $15M/$30M2026 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

What You Can Do in 2025

  • If you plan to itemize, 2025 is an ideal year to maximize your charitable giving.
  • Accelerating gifts into 2025 lets you benefit from today’s more generous deduction rules before changes arrive in 2026.
  • Work with your financial or tax advisor to shape a giving plan that fits your goals—especially if you’re in a higher income bracket.

Looking Ahead to 2026

  • Beginning in 2026, a new universal charitable deduction will allow non-itemizers to deduct up to $1,000 (single) or $2,000 (married filing jointly) in eligible cash gifts.
  • At the same time, new limits will apply for itemizers, including a 0.5% AGI floor and a cap on deductions for higher-income donors.
  • Planning your giving now helps you make the most of current opportunities. Consult your financial or tax advisors to align your giving with your goals and the evolving landscape.