Beginning in 2026, all taxpayers will be able to deduct charitable donations from their taxes, not just those who itemize. Individuals can deduct up to $1,000 per year and married couples up to $2,000 annually. This change is expected to broaden the incentive for charitable giving across more households.
A strategy known as “bunching” remains useful for donors. By combining several years of donations into a single tax year, individuals may surpass the standard deduction threshold and maintain their tax benefits.
The new law also raises the cap on cash donation deductions from 50% to 60% of adjusted gross income (AGI). This increase could encourage larger contributions from donors with greater financial capacity.
Additionally, the estate tax exemption has been doubled, providing more flexibility for individuals planning their philanthropic legacies alongside estate considerations.
Tax advantages related to donor-advised funds and gifts of appreciated assets are unchanged under the new bill. These vehicles continue to offer effective ways for donors seeking impactful and tax-efficient giving options.
For further information or assistance with charitable giving strategies, individuals are encouraged to contact development@pba.edu or call 561.803.2777.
