The answers to “Why do you give?” have a familiar ring. Research has shown time and again that while different donors have different reasons for giving, there’s an overarching response when asked about what motivates them. They say they want to be a part of creating positive change, and are driven by compassion and a sense of community. Sometimes there’s a personal connection, maybe a nonprofit that helped them or a loved one, that’s an added motivation to donate to a particular organization and make an impact.
There’s one motivation that’s not usually at, or even near, the top of the list for most donors, but it’s still a factor worth considering: taxes and the potential deductions and benefits for giving.
With tax laws always changing, there are some important charitable giving changes coming up that are worth highlighting and keeping in mind. It might make sense to give more right now, before the end of 2025.
It’s easier to plan ahead – for nonprofits and for donors – when you know what’s staying the same and what’s changing.
For the 2025 tax year, meaning taxes filed in 2026, the charitable giving rules are largely the same.
Given the standard deduction amounts, the vast majority of filers will likely not itemize their deductions again this year. Those amounts are:
- Single / Married Filing Separately: $15,750
- Married Filing Jointly: $31,500
- Head of Household: $23,625
If your deductions are higher than those amounts and you do itemize for 2025, the charitable contributions have these limits:
- Cash donations: Deduct up to 60% of your Adjusted Gross Income (AGI) for gifts to qualified public charities (including Donor-Advised Funds).
- Donating appreciated assets (held 1+ years): Deduct up to 30% of AGI.
- Qualified Charitable Distributions (QCDs): If you’re 70½ or older, you can give up to $108,000 per person (2025) directly from your IRA — and those gifts do not count as taxable income and can satisfy Required Minimum Distributions.
While this year is largely business as usual, it’s beginning January 1st, 2026 when new rules, limits and opportunities kick in. The biggest is probably a new charitable giving deduction for tax filers who do not itemize.
If you take the standard deduction, you’ll be able to claim:
- Up to $1,000 for single filers
- Up to $2,000 for married couples filing jointly
These are above-the-line deductions that lower your AGI, and they apply only to cash gifts to qualified nonprofits.
For taxpayers who do itemize, some changes are also on the way.
Starting in 2026, if you itemize you’ll only be able to deduct charitable giving amounts over 0.5% of your AGI. For example, if your AGI is $200,000, the first $1,000 of your charitable gifts will not be deductible.
There are also reduced tax benefits for high-income donors who are in the top tax bracket, which could impact some larger gifts. For those donors, the value of a charitable deduction will be limited to the equivalent of a 35% tax rate, even if the marginal rate is higher.
All of this adds up to a chance to plan some smart and strategic giving, namely: Consider giving more in 2025. This year’s rules mean it might make tax sense to consider completing some gifts before December 31st, including:
- Large gifts
- Multi-year commitments
- Gifts of appreciated assets
- Contributions to Donor-Advised Funds
Donor-Advised Funds can also be helpful when it comes to “bunching” a few years of donations into one tax year to reach the threshold to itemize.
For donors, as always it’s key to look to your own tax pro for the best advice for you. And, as always, for nonprofits, we are here to support your missions, and happy to look at ways to grow those all-important donations, whatever changes are ahead.