Overview
- Wealth advisors are urging high earners to bunch or front‑load donations into 2025, with donor‑advised funds cited as a way to lock in current deductions and grant over time.
- Beginning in 2026, non‑itemizers may claim an above‑the‑line deduction for cash gifts up to $1,000 for single filers or $2,000 for joint filers, excluding gifts to donor‑advised funds and private foundations.
- Itemizing taxpayers will face a new 0.5% of AGI floor on deductible gifts in 2026, and those in the top bracket will see the effective benefit capped at 35 cents per dollar donated.
- Corporate contributions become deductible only to the extent they exceed 1% of taxable income, with reporting indicating a 10% ceiling, encouraging multi‑year or pooled commitments.
- Other changes include a permanent 60% of AGI limit for individual cash gifts and, starting in 2027, a tax credit up to $1,700 for contributions to qualifying K‑12 scholarship organizations.