A significant shift in U.S. tax law is coming in 2026, reshaping how individuals, families, and companies approach charitable giving. If you give strategically, or want to start, your decisions between now and the end of the year will influence how much you can deduct, how you structure your charitable activity, and how effectively you support the causes you care about.

This isn’t about fear or urgency for its own sake. It’s about recognizing a rare moment when planning ahead can meaningfully increase both your financial efficiency and your philanthropic impact.

What’s Changing and Why It Matters

Several provisions scheduled for 2026 will introduce new opportunities, new limitations, and new dynamics in how giving is reported and deducted.

For individuals

• A universal charitable deduction (up to $1,000 for individuals and $2,000 for joint filers) will be available to people who don’t itemize—most Americans.

• Gifts to Donor-Advised Funds (DAFs) will not count toward that universal deduction.

• Itemizers will face new constraints: a 0.5% threshold that must be met before deductions apply and a 35% limit on the value of itemized charitable deductions for those in the top tax bracket.
  
  

For corporations

• A 1% giving floor, where the first 1% of charitable contributions will not be deductible.

• More scrutiny around how contributions are structured, tracked, and aligned with broader business activities.

While that may sound restrictive, in practice, the financial impact is relatively small. The bigger factor is how companies choose to respond: by cutting giving or by getting more strategic about it and even increasing giving

Consider Accelerating Giving

For anyone who itemizes deductions, 2025 offers a unique chance to maximize impact before the new rules kick in.

Many donors will benefit from “bunching”—making several years’ worth of charitable contributions in 2025. Even if you don’t know exactly where you want the dollars to go long-term, a DAF allows you to contribute now (under current tax rules) and distribute to nonprofits later.

Think Creatively about Appreciated Assets

2025 is also a strong year to contribute appreciated stock or cryptocurrency. Doing so allows you to avoid capital gains tax while still taking a deduction for the full fair market value—an efficient approach that pairs well with pre-funding a DAF.

For Non-Itemizers, New Opportunities Ahead

With the universal charitable deduction arriving in 2026, people who historically couldn’t deduct small or mid-sized gifts will finally have access to a meaningful incentive. This creates a real need for better tracking tools, simple ways to document donations, and platforms that help everyday givers make the most of the new rules.

The through-line for all individuals is clear: charitable giving works best when it’s built into your financial planning and not something you scramble to figure out in late December.

Why 2025 Is a Strategic Window for Corporations

Companies also have a short-term advantage. The year ahead provides the chance to:

• Reevaluate philanthropic priorities

• Pre-fund giving for future years

• Build out corporate giving programs before new regulations go live

The introduction of the 1% floor should be viewed less as a barrier and more as a prompt. As consumers and employees increasingly expect brands to lead on social impact, the pressure is on companies to formalize, measure, and modernize their approach—not to scale it back.

The organizations that treat giving as a core business strategy, rather than a compliance task, will be the ones that see measurable returns in reputation, retention, and community trust.

Modern Philanthropy Needs Modern Tools

Beyond the tax mechanics, something bigger is happening: philanthropy is being reshaped by technology. Data-driven platforms, real-time reporting, emerging giving vehicles, and digital-first management tools are making it easier for people at every income level—and companies of every size—to participate in strategic, transparent, values-aligned giving.

The donors and business leaders who thrive over the next decade will be the ones who treat giving with the same discipline they apply to financial planning, operations, or long-term strategy.

The Bottom Line: The Next 12–18 Months Will Define the Next 5 Years of Giving

Tax changes are inevitable. But how you prepare can dramatically shift the outcome. Taking thoughtful action now gives individuals and companies the ability to:

• Make the most of current tax rules

• Set up structures that work long after 2026

• Build habits and systems that lead to more intentional, more consistent giving

• Increase impact without increasing complexity

A new era of philanthropy is coming. How you move now determines how ready you’ll be.