I want to bring your attention to several meaningful changes to charitable-giving tax rules scheduled to take effect in 2026. These adjustments may reduce the tax benefit of certain gifts going forward, which makes 2025 an important year to revisit your strategy.
A Kiplinger article dated November 28, 2025 highlighted these upcoming shifts and why proactive planning may help donors preserve more of their deduction value. Below is a concise overview of what is changing and how it may affect you.
What’s Changing in 2026
Beginning January 1, 2026:
- A new deduction “floor” will apply. Only charitable donations that exceed 0.5% of your adjusted gross income (AGI) will qualify for a tax deduction. Smaller recurring gifts may fall below this threshold and no longer generate a deduction.
- High-income donors may receive slightly lower deduction value. Itemized deductions will be limited to 35% of their value, compared with today’s 37% top marginal rate.
- Non-itemizers gain a modest new benefit. Starting in 2026, taxpayers who take the standard deduction may deduct up to $1,000 (single) or $2,000 (married filing jointly) in direct cash gifts to public charities. This new deduction does not apply to contributions to donor-advised funds or private foundations.
These changes create a meaningful shift: itemizers—especially those who give annually or plan larger future gifts—may lose some tax efficiency, while non-itemizers gain a limited but helpful deduction opportunity.
Why 2025 Is a Strategic Year for Charitable Giving
With the current rules still in place through December 31, 2025, this year offers a final window to maximize the tax benefits of gifts you already intend to make.
Strategies to consider include:
- Accelerating gifts you planned for future years so they fall under today’s more favorable rules.
- “Bunching” multiple years of giving into a single 2025 donation to ensure deductibility before the new AGI floor applies.
- Prefunding a donor-advised fund (DAF) to secure a 2025 deduction while giving to charities gradually over time.
- Coordinating charitable giving with income planning, since the AGI-based threshold will directly affect future deductibility.
For many households, these steps can help preserve deduction value and maintain flexibility moving into the new rules.
2025 Year End Consideraions
If charitable giving is part of your financial plan—or if you anticipate larger gifts in the next one to three years—I strongly encourage reviewing your approach now. The upcoming 2026 changes are significant enough that making intentional moves in 2025 could offer meaningful tax advantages.
If you would like to discuss strategies, donor-advised funds, or how these changes may impact your situation, please reach out to directly so we can review your situation.
December 2025
