Charitable Giving Rules Change in 2026: Here’s How to Prepare
The 2025 tax law introduces an important change to how charitable contributions are deducted—starting in 2026. For any taxpayer who itemizes, 2025 presents a final window to maximize deductions before a new limitation takes effect.
The 0.5% AGI Floor Begins in 2026
Beginning in 2026, taxpayers who itemize deductions will only be able to deduct charitable contributions that exceed 0.5% of their adjusted gross income (AGI).
For example: If your AGI is $500,000, the first $2,500 of charitable contributions will not be deductible.
This change affects all itemizers, regardless of income level, and means that smaller or routine charitable gifts may no longer produce a tax benefit unless they exceed the threshold.
Why 2025 Matters
The 0.5% floor does not apply in 2025, making this year a unique opportunity to fully deduct charitable contributions without limitation—and a strategic time to plan your giving.
Consider:
Accelerating planned contributions into 2025
Bunching multiple years’ gifts to surpass the standard deduction threshold
Using a Donor-Advised Fund (DAF) to front-load future giving
Donating appreciated securities to avoid capital gains and increase impact
The Bottom Line:
Whether you give modestly or make large gifts, 2025 is the last year to claim full deductions on charitable contributions without having to clear a minimum threshold. Planning ahead can help you make the most of your generosity—and your tax benefits.
Let’s talk now to create or update your charitable giving strategy before this window closes.
