New Tax Law Changes & Charitable Giving
Recent federal tax law changes may influence charitable giving beginning in 2026. While these updates will affect donors differently depending on individual circumstances, they also create new opportunities for thoughtful planning.
Important Note
This information provides a general overview of key provisions and common giving strategies. We encourage all donors to consult their tax or financial advisor to determine what is best for their individual situation.
Key Federal Tax Law Changes Beginning in 2026
Recent updates to federal tax policy may influence how charitable contributions are treated for tax purposes. Several provisions are worth keeping in mind as you plan your giving:
Expanded Charitable Deduction for Standard-Deduction Filers
Beginning in 2026, taxpayers who claim the standard deduction may again be eligible for a limited charitable deduction, subject to amounts established by law. This provision allows some donors who do not itemize to receive a tax benefit for qualifying philanthropic gifts. Certain gift vehicles, such as donor-advised funds, are excluded from this deduction.
New Floor for Itemized Charitable Deductions
For taxpayers who itemize, charitable contributions must exceed a minimum percentage of adjusted gross income (AGI) before becoming deductible. This new “floor” means smaller gifts may not yield the same tax benefit as before, particularly for donors with higher incomes.
Adjustments for High-Income Taxpayers
Starting in 2026, the tax value of itemized charitable deductions for individuals in the highest income brackets may be capped at a rate below their top marginal tax rate. While charitable giving remains strongly incentivized, the after-tax benefit of deductions may be modestly reduced for some donors.
What These Changes May Mean for Your Giving
Every donor’s situation is different, but these changes create new planning opportunities to consider:
- Timing matters: Depending on your circumstances, making or accelerating a charitable gift before December 31, 2025, may result in greater tax efficiency.
- Considering non-cash assets: Gifts of appreciated securities, contributions to donor-advised funds, or qualified charitable distributions (QCDs) from an IRA may continue to offer meaningful tax advantages.
- Planning for long-term impact: Combining multiple years of giving into a single contribution can help maximize tax benefits while supporting sustained charitable impact over time. Donor-advised funds remain a flexible tool for this approach.
Qualified Charitable Distributions (QCDs)
A QCD allows eligible donors to transfer funds directly from an IRA to a qualified charity—up to the annual IRS limit—without including the distribution in taxable income. These gifts are not subject to the new itemized deduction floor or high-income deduction cap.
In addition, for a limited time, the
Foundation for Jewish Philanthropies is offering incentives for donors who establish new donor-advised funds now through
March 31, 2026.
Learn more here.
Your generosity directly supports financial assistance for memberships and scholarships at our Early Childhood Centers, Kids’ Place, and Camp Centerland. It helps fund programs, services, equipment, and facility updates year-round.
We encourage you to consult with your tax or financial advisor to determine how these changes may fit into your personal plans. If helpful, our team is always glad to work alongside you and your advisors to ensure your philanthropy reflects both your values and your goals.
Thank you for your continued commitment to the JCC of Greater Buffalo.
Questions?
Contact Alex Eadie, Senior Director of Advancement
