There are tax changes coming in 2026, and those who make charitable gifts should note them. Because we appreciate you and your generosity, we have summarized the major charitable changes to the tax code below. Please note, however, that our Sisters take a vow of poverty — we’re not money experts. Consider talking to someone who is before you make any decisions.
If you itemize your deductions or are in the 37% bracket, you may want to consider making a gift by Dec. 31, 2025. If you use the standard deduction, it may be better to hold off until 2026. More details are below, and again, thank you for your charitable heart.
Beginning with Tax Year 2026, if you itemize, you must give at least 0.5% of your adjusted gross income (AGI) to receive a tax benefit.
Here’s the math: If your AGI is $100,000, you will have to give at least $500 to receive a tax benefit.
So if you give $1,000, you would receive a deduction of $500. Any gift below $500 would not receive a deduction.
Keep in mind, donations are cumulative. You need to give 0.5% of your AGI throughout the year, but it does not have to be in one lump sum.
How does this affect you?
Plan ahead and talk to your financial advisor before making any decisions.
Taxpayers in the 37% tax bracket who itemize will see deductions capped at 35% in the 2026 tax year.
You may want to talk to your tax advisor and consider a larger gift before December 31, 2025, to optimize your tax savings.
If you take the standard tax deduction, you may be able to deduct some donations next year. Taxpayers who do not itemize may deduct charitable gifts up to $1,000 for an individual or $2,000 for a married couple.
How does this affect you? You may want to hold off on “year-end” gifts until after January 1, 2026. These gifts will be deductible on your 2026 tax return.
Keep in mind that contributions to donor-advised funds are not included in this deduction.
Be sure to talk to a qualified financial professional about this.