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?
| Change | Effective Date |
|---|---|
| $1,000/$2,000 non-itemizer cash-gift deduction | 2026 tax year |
| 0.5% AGI floor & ~35% cap | 2026 tax year |
| K–12 SGO federal credit | 2027 tax year |
| Estate & gift exemption $15M/$30M | 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
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.
