The 2026 charitable deduction changes: what to tell donors.

What changed for 2026

The One Big Beautiful Bill Act, signed in July 2025, changed the federal charitable deduction starting with the 2026 tax year. For most nonprofits, three changes matter.

A deduction for people who don't itemize. The IRS says that beginning with tax year 2026, taxpayers who take the standard deduction may deduct up to $1,000 of cash contributions to qualified organizations, or $2,000 for married couples filing jointly. That matters because most households don't itemize, so for years most small and midsize donors got no federal tax benefit from their gifts. The law firm Taft notes that the new deduction covers cash gifts made directly to eligible public charities, so donors should check the details before assuming a particular gift qualifies.

A floor for itemizers. Donors who itemize can now deduct only the part of their total giving that is above 0.5% of their adjusted gross income, according to Taft. For a household with $200,000 in income, that means the first $1,000 of giving in a year produces no deduction.

Limits at the top. Kiplinger reports a new cap on the value of itemized deductions for donors in the top tax bracket, which reduces the tax benefit of each dollar given to about 35 cents. Corporations face their own new floor: only giving above 1% of taxable income is deductible, Taft says.

What hasn't changed: the Dec. 31 deadline

The timing rules are the same as before. Under IRS Publication 526, a gift by check counts in the year it is mailed, and a credit card gift counts in the year it is charged, even if the donor pays the card bill later. Gifts made by Dec. 31, 2026, count for 2026.

That still makes the last two weeks of December the busiest giving days of the year for many organizations. GivingTuesday, on Dec. 1, 2026, opens the season. Our fundraising calendar lists the other key dates.

What to tell donors

Most donors give because they care about the cause, not for the tax break. The new rules are a reason to start a conversation, not the headline of your appeal. A few practical points:

• Keep the mission first. Lead with what a gift will do, then mention the tax change in a sentence or a P.S.
• Say it simply. For example: "Starting this year, many donors who don't itemize can deduct up to $1,000 of cash gifts on their federal return." Avoid promising a specific tax result.
• Point to an adviser. Every donor's situation is different. Suggest that donors check with their tax adviser, and don't let staff or callers give tax advice.
• Talk to larger donors early. Some itemizers may change when or how they give because of the new floor and cap. If a major donor raises this, connect them with your planned giving staff or encourage them to talk with their adviser.
• Remind donors about matches. Employer matching gifts are unaffected by the donor's own deduction, and many matching programs reset with the calendar year. See our list of corporate matching gift programs.

Using the phone at year-end

A short, friendly call can do what a mailed appeal can't: answer a donor's question on the spot. Year-end is a good time for three kinds of calls.

• Thank-you calls to recent donors, with no ask, which help with donor retention.
• Renewal calls to donors who gave last year but not yet this year.
• Reactivation calls to donors who lapsed a year or two ago.

Keep scripts accurate. If callers mention the new deduction, give them one approved sentence and a line to use when a donor asks a tax question: "That's a great question for your tax adviser." Calls that ask for gifts also have to follow federal and state rules, including the disclosures required by the Telemarketing Sales Rule. Our guide to fundraising call rules covers the basics.

How KFG helps

Kensington Fundraising Group runs respectful, no-pressure donor calls for nonprofits and associations, from year-end renewals to lapsed donor reactivation. We help write accurate scripts, including how callers should handle tax questions, and walk you through the state registration steps before calling starts.