The season of giving is here — and if you’ve been thinking about making a donation before the end of the year, you’re not alone. With new federal tax changes set to take effect in 2026, many generous supporters are wondering: Does it make sense to give now, or wait until the new rules begin?
While every donor’s situation is different, here are a few helpful things to know as you plan your charitable giving.
#1 ITEMIZED VS. NON-ITEMIZED: WHAT’S THE DIFFERENCE?
When you file your taxes, you can either take the standard deduction or itemize your deductions.
- Standard deduction: This is a fixed amount that reduces your taxable income automatically. For 2024, it’s $14,600 for single filers and $29,200 for married couples filing jointly (these amounts are adjusted each year for inflation). Most taxpayers use this option because it’s simple and often results in a lower tax bill.
- Itemized deductions: Instead of taking the flat deduction, you can list specific expenses like mortgage interest, medical costs, and charitable contributions. You’ll only itemize if the total of these deductions is more than your standard deduction amount.
If you’re not sure which applies to you, a tax preparer or accountant can confirm how you typically file.
#2 What’s Changing — and What It Means
Here’s a quick comparison between current rules (through 2025) and the new rules (beginning in 2026):
Who It Applies To
Through 2025
Starting 2026
Non-itemizers
No charitable deduction (the temporary COVID-era deduction expired)
Can deduct up to $1,000 in cash gifts ($2,000 for married couples filing jointly) to qualifying public charities
Itemizers
Can deduct cash gifts to qualifying charities, up to 60% of adjusted gross income (AGI)
Can still deduct cash gifts, but only the portion above 0.5% of AGI will count toward your deduction
High-income donors
Deduction reduces tax based on your full marginal rate (up to 37%)
The benefit is capped — you can’t receive more than a 35% tax savings per dollar donated
What is “AGI”? AGI (Adjusted Gross Income) is your total income minus certain adjustments, such as contributions to retirement accounts, student loan interest, or educator expenses.
#3 What Counts as a “Qualifying Public Charity”?
Not all nonprofits qualify the same way for charitable deductions. Under IRS rules, the new universal deduction (for non-itemizers) applies only to donations made to public charities recognized under Section 170(b)(1)(A) of the Internal Revenue Code.
Here’s what that means in plain language:
✅ Qualifying organizations include:
- Most community-based nonprofits that receive broad public support (for example, organizations like CORA Services or Wonder Girls)
- Religious organizations (churches, synagogues, mosques, temples)
- Educational institutions (schools, colleges, universities)
- Hospitals and medical research organizations
- Certain private operating foundations that actively run charitable programs
- Government units (like public schools or city libraries) if the donation is for a public purpose
🚫 Not qualifying for this specific deduction:
- Donor-advised funds (DAFs), such as accounts at Fidelity Charitable or Schwab Charitable
- Private family foundations
- Supporting organizations (entities tied to other charities but not directly running programs)
- Most international charities that are not U.S.-registered 501(c)(3) organizations
If you ever want to double-check, you can look up any organization in the IRS Tax-Exempt Organization Search:
👉 https://apps.irs.gov/app/eos/
Look under the “Deductibility Status.” If it says “PC” (Public Charity) or references 170(b)(1)(A), it qualifies.
#4 Does It Make Sense to Give Now or Later?
That depends on your individual situation. Because the new rules start in 2026, donations made before December 31, 2025 will follow the current guidelines — which may be more favorable if you already itemize deductions.
If you usually take the standard deduction, the new 2026 rules could allow you to deduct a small portion of cash donations for the first time.
Either way, it’s worth discussing your plans with a qualified tax professional to decide what’s best for you.
#5 A Few Smart Giving Tips
- Check your receipts. Always keep acknowledgment letters or receipts for your records.
- Know your deadlines. Donations must be made by December 31 to count for that tax year.
- Understand what you’re giving. Cash gifts qualify under the new universal deduction; non-cash gifts (like stock or property) have different rules.
- Talk to your accountant before making large or complex donations.
#6 No Matter When You Give, Your Impact Lasts
While tax deductions are one factor to consider, the true value of your generosity is the difference it makes in your community. Whether you give before 2026 or after the new rules take effect, your support helps sustain programs and services that change lives every day.
Disclaimer: This article is for informational purposes only and should not be considered tax, legal, or financial advice. Please consult a qualified professional to understand how these rules apply to your personal circumstances.
