Looking Ahead: What’s New for Charitable Giving in 2026

With the passage of the One Big Beautiful Bill Act in July 2025, a number of tax changes will take effect in the 2026 tax year that will affect charitable giving in meaningful ways.

This blog post is designed to explain what’s changing, how it might impact your donations to the Marine Raider Foundation, and what strategies you might consider to ensure your giving remains as impactful and tax efficient as possible.

Here are the key changes that matter for charitable donations STARTING in 2026:

  1. A new deduction for non-itemizers
    • Starting in 2026, if you take the standard deduction (i.e., you don’t itemize), you’ll still be able to deduct a portion of your charitable gifts. Specifically:
      • Single filers: up to $1,000 cash donation deduction
      • Married filing jointly: up to $2,000 cash donation deduction
    • Importantly: this applies only to donations made directly to qualified operating charities (not donor-advised funds).
      • What it means for you: If you’ve typically taken the standard deduction and made cash donations, this change is good news. You’ll now get a tax benefit for giving even if you don’t itemize—something that hasn’t been broadly available for years. It means your support of the Marine Raider Foundation is even more tax-friendly in 2026 and beyond.
  1. A “floor” for itemizers
    • If you do itemize your deductions, the law now requires that your charitable contributions exceed 0.5% of your Adjusted Gross Income (AGI) in order to be deductible. For example: if your AGI is $200,000, then your donations must exceed $1,000 before any deduction is allowed.
      • What it means for you: Smaller donations might no longer yield a deduction if you itemize—though the impact will vary depending on income and giving levels.
  1. A cap for high-income donors
    • For those in the highest federal income tax bracket, the value of the deduction is modestly reduced. Starting in 2026, if you’re in the top bracket (currently 37%), the tax benefit from giving is capped at approximately 35% of the charitable amount. So, for each $1 donated, a high earner might save $0.35 in tax, instead of $0.37.
      • What it means for you: If you’re a major donor, you may want to review your giving strategy, especially if you anticipated tax benefits from high-level donations.

If you itemize and give more substantially, you’ll want to account for the new floor (0.5% AGI) and the cap on the deduction benefit (35%). These changes may affect your motive or timing for giving. For example:

  • You may consider bunching your donations (giving more in one year rather than across multiple years) so you exceed the floor and maximize the deduction.
  • You may want to make certain gifts in 2025 (before the rules change) if you can — especially for large gifts or gifts via donor-advised funds — so you benefit from the “old” rules.
  • If you’re giving via appreciated assets or exploring estate/legacy gifts, you’ll want to consult your tax advisor to adjust strategy.

At the Marine Raider Foundation, our mission—helping those who have sacrificed the most—is built on the generosity of committed donors. As the tax law changes, the motivation for giving remains the same: belief in a cause, the desire to make a difference, and to be there for our Raiders, their families, and our Gold Star Families.

If you have any questions about how these changes might affect your giving to the Marine Raider Foundation, we encourage you to reach out to your tax advisor.

We are incredibly grateful for your continued support and commitment to our mission.