If You Give to Charity, These 2026 Tax Changes Will Impact You
H.R. 1 fundamentally changes charitable giving starting January 1, 2026. Here's what matters:
TL;DR: The Changes
Itemizers: 0.5% AGI floor + lower deduction value (37% → 35%)
Standard deduction filers: New $1,000/$2,000 deduction
Corporations: 1% taxable income threshold
What to Do
If you itemize high-income gifts: Give before Dec. 31, 2025 to maximize tax benefits.
If you take the standard deduction: Wait until 2026—you'll get tax savings for the first time.
If you're on the borderline: Bunch 2-3 years of giving into 2025 using a donor-advised fund, then take the standard deduction in 2026-2027.
If you're a corporation: Reach the 1% threshold or bunch gifts strategically.
Good news: QCDs, appreciated securities, and planned giving remain highly tax-advantaged.
The Details…
When H.R. 1 was signed this summer, it fundamentally changed how charitable giving works in America. Three major changes take effect January 1, 2026:
For itemizers: New 0.5% AGI floor + reduced deduction value (37% → 35%)
For standard deduction filers: New $1,000/$2,000 above-the-line deduction
For corporations: New 1% taxable income threshold
What This Means for Your Giving
High-income itemizers will pay more out-of-pocket starting in 2026. A $15,000 gift that cost you $9,450 in 2025 will cost $10,450-$10,950 in 2026. If you're planning a major gift anyway, making it before December 31, 2025 preserves maximum tax benefit.
Middle-income donors who take the standard deduction get tax benefits for the first time in 2026. If this is you, waiting until January makes sense – you'll save $200-$300+ annually on gifts you were already planning to make.
Donors who sometimes itemize face the most complexity—and the biggest opportunities. Bunching multiple years of giving into 2025, then taking the standard deduction in 2026-2027, maximizes your tax benefits while maintaining consistent support. A donor-advised fund makes this strategy simple to execute.
Corporate donors must exceed 1% of taxable income before any gift is deductible. Below that threshold? Zero tax benefit. This makes strategic timing and bunching critical for businesses.
Good news: Monthly giving, QCDs, appreciated securities, bequests, and planned giving strategies remain highly tax-advantaged.
The Bottom Line
These aren't minor adjustments—they're the most significant changes to charitable giving tax policy in decades. The difference between giving strategically and giving without a plan could cost you thousands in unnecessary taxes or missed opportunities.
Ready to maximize your impact and your tax benefits? Schedule a complimentary strategy session to review your specific situation before year-end. We'll help you navigate these changes and create a giving plan that works for both your values and your finances.
Epic Philanthropy specializes in strategic giving guidance for donors navigating complex tax landscapes. CAP® credentialed and serving clients nationally.
