Understanding 2026 tax changes for donors

Plan ahead for smarter giving under the One Big Beautiful Bill Act (OBBB) 

Overview 

Charitable giving rules are changing under the One Big Beautiful Bill Act (OBBB) starting in 2026—but don’t worry, the changes are manageable and designed to keep strong incentives for giving. While the details may look complex, the impact for most donors is straightforward.  

The key is timing: knowing what’s coming helps you plan ahead and make the most of your generosity. These updates apply to any charity you care about, so this is good information to have. 

Highlights: 

• Permanent extension of the ability to deduct up to 60% of AGI for cash contributions to 501(c)(3) public charities. 
• Increase in the standard deduction by $1,000 for single filers and $2,000 for married couples filing jointly, bringing totals to $15,750 (single) and $31,500 (married), indexed for inflation. 
• New strategies for gifts of stock, crypto, and bunching contributions to maximize tax benefits. 

Why this matters 

Generosity makes a difference—and these changes are here to keep charitable giving strong. With a little planning, you can continue to support the causes you care about while making the most of your tax benefits. Whether you give cash, stock, or crypto, use strategies like bunching, or want to update your will, the goal is simple: to help you give wisely and confidently. 

Practical tips for donors 

• Track donations carefully to claim new deductions. 
• Plan ahead: Accelerate gifts before 2026 if possible. 
• Explore donor-advised funds, Qualified Charitable Distributions (QCDs), stock gifts, and crypto donations for tax-efficient giving. 

Video – smart ways to give 

“The Smartest Ways to Give at Year-End” is a video that you may find helpful. In it, FreeWill Co-CEO, Patrick Schmitt, interviews Dr. Russell James (a leading expert on charitable giving), about some of the smartest ways to give at year-end. It’s a quick watch, and it’s useful to inform your giving to any of the causes you care about. 

Key changes for individual donors

1. Above-the-line deduction for non-itemizers 

• Starting in 2026, taxpayers who take the standard deduction can claim: 
• $1,000 for single filers 
• $2,000 for married couples filing jointly 
• Applies only to cash contributions to qualified charities (excludes donor-advised funds and private non-operating foundations). 

For the first time since 2021, non-itemizers will get a tax break for charitable giving 

2. New floor for itemizers 

• Itemizers can deduct charitable contributions only to the extent they exceed 0.5% of Adjusted Gross Income (AGI). 
• Example: If AGI = $500,000, the first $2,500 donated is not deductible. 
• Your total itemized deductions may exceed the standard deduction, which can mean more tax savings 

3. Cap on deduction value for high-income donors 

• For taxpayers in the top bracket (37%), the deduction benefit is capped at 35%. 
• Example: A $1,000 gift yields a $350 deduction instead of $370. 
• Donors have a unique opportunity to secure greater tax benefits before the new 35% cap takes effect in 2026 

4. Timing strategies and bunching 

• Many limitations take effect in 2026, so donors may want to accelerate or “bunch” giving into 2025. 
• Consider using donor-advised funds or grouping multiple years of gifts into one tax year to exceed the new AGI floor. 

5. Gifts of stock 

• Donating appreciated stock remains a powerful strategy: 
• Avoid capital gains tax. 
• Receive a deduction for the fair market value of the stock if held for more than one year. 

6. Gifts of cryptocurrency 

• Crypto donations are treated as property: 
• Deduction for fair market value if held for more than one year. 
• Avoid capital gains tax on appreciated crypto. 
• Must follow IRS substantiation rules for non-cash gifts. 

7. Legacy gifts 

• The new tax bill raises and locks in the estate and gift tax exemption to $15 million per person ($30 million for couples). While this means fewer families will face estate taxes, planned giving remains one of the most meaningful ways to create impact. 
• Options like naming IFAW as a beneficiary of your retirement account or including us in your will can help you support a cause you care about while maximizing tax efficiency. 

Talk with us 

We are happy to hear about your charitable plans and to support your philanthropic decisions. If you’re considering a gift or exploring options, please reach out to our team—we’re here to listen, share resources, and help you align your generosity with what matters most to you. We also welcome your donor stories—sharing what inspires you can help others see the impact of giving. 

Email philanthropy@IFAW.org and we’ll put you in touch with a development staff person in your region.  

Here’s a quick look at how upcoming tax changes could impact your charitable giving. 

Visual comparison: What the new tax law means for your giving

Disclaimer: This information is for educational purposes only and should not be considered tax or financial advice. Please consult with your own tax advisor or financial professional to determine how these rules apply to your individual situation.