Here are a few key takeaways you need to know:
1. Charitable Deduction Expands to All Taxpayers (Starting 2026)
Beginning in 2026, all taxpayers—not just those who itemize—will be able to deduct charitable gifts. Non-itemizers can deduct up to $2,000 (married couples) or $1,000 (individuals) annually, expanding the incentive to give for millions of households.
2. “Bunching” Donations Can Maximize Tax Savings
A popular strategy called bunching allows donors to combine multiple years of giving into one tax year, surpassing the standard deduction threshold and preserving tax benefits.
3. Higher Limits for Major Cash Donations
The deduction cap for cash gifts has increased from 50% to 60% of adjusted gross income (AGI), making it even more appealing for high-capacity donors to contribute generously.
4. Expanded Estate Tax Exemption Offers More Flexibility
With the estate tax exemption now doubled, donors have more freedom to align their philanthropic goals with their estate and legacy planning.
5. Donor-Advised Funds and Gifts of Appreciated Assets Still Shine
Tax benefits for donor-advised funds and appreciated securities remain unchanged, making these options as effective as ever for impactful, tax-efficient giving.
If you have questions or want to explore your giving options, we’re here to help! Contact our team at 561.803.2777 or development@pba.edu. For an in-depth summary on the new bill from our friends at George Philanthropy Group, click here.
