Did You Know? New Federal Rules for Charitable Giving Coming in January 2026

Did You Know? Beginning January 1, 2026, new federal rules for charitable giving will take effect, potentially requiring some donors to adjust their charitable giving strategies. By making your gift to CTS by December 31, 2025, you can maximize your deduction under current law while supporting our mission to form disciples and serve God’s transforming of the world. Staying up-to-date with tax law changes is a crucial aspect of wise charitable estate planning.  

Here are seven important elements of the new law, which takes effect Jan. 1, 2026: 

• Tax brackets: The new law permanently extends the 10%, 12%, 22%, 24%, 32%, 35% and 37% tax rates.  

• Standard deduction: Most taxpayers will continue to use the elevated standard deduction—$15,750 for individuals and $31,500 for married couples in 2025. It will be indexed for inflation thereafter. 

• Deduction limits for cash gifts: You can continue to deduct cash gifts to public charities up to 60% of your adjusted gross income (AGI) if you itemize. 

• Estate tax exemption: The federal estate and gift tax exemption will remain high and increase to $15 million per individual (indexed annually). 

What’s new in 2026: 

• Tax break for non-itemizers: You can deduct up to $1,000 (individuals) or $2,000 (married couples) for charitable gifts, even if you don’t itemize.  

• If you do itemize, there’s a new floor on your charitable deduction: The new law adds a minimum charitable contribution rate if you itemize your deductions. The law requires taxpayers to give at least 0.5% of their AGI to receive a tax benefit for their charitable giving. 

• If you are in the top tax bracket, there’s a new charitable contribution limitation: Under current law, top earners get a 37-cent tax benefit for every $1 deducted. Starting in 2026, that benefit will be capped at 35 cents per dollar. 

 

You may be asking yourself questions such as: “How do these changes impact me?” or “Will my gift still be deductible?” or “Is it smarter to give more in 2025 or next year?” 

We can work with you and your advisors to answer these questions. Please contact or CDemaio@cts.edu or KChampa@cts.edu for more information or to discuss how your gift can help further our critical mission.