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 expect to itemize, give more charitable gifts in 2025, rather than spreading them over several years. This helps you benefit from the more generous deduction caps and no AGI floor yet (or less restrictive rules) that will begin 2026.
Things to Watch Out For
- If you accelerate giving into 2025, you might not need to give as much later.
- Restrictions in 2026 (0.5% AGI floor, deduction cap) will reduce value.
- Always do the math: high-income donors benefit most.