Starting January 1, 2026, new federal tax rules will change how charitable deductions work. Here’s are some of the key new rules that could impact how deductions are calculated for your philanthropic contributions:  

• Universal Deduction: Even if you don’t itemize, you’ll be able to deduct up to $1,000 (or $2,000 for couples) for gifts to qualified nonprofits. 

• New Floor for Itemizers: Only contributions above 0.5% of your adjusted gross income will be deductible. 

• Cap for High-Income Taxpayers: The maximum deduction rate will be limited to 35%, slightly reducing benefits for those in the highest brackets. 

• IRA Giving: Qualified Charitable Distributions (QCDs) from IRAs remain one of the most tax-efficient ways to give. In 2025, the annual limit is $108,000 per person (or $216,000 per couple). The new 0.5% adjusted gross income floor and the 35% maximum deduction cap will not apply to QCDs.  

These changes may influence how you plan your giving. Some options that could help you save include:  

• Consider accelerating multi-year gifts or “bunching” contributions before December 31, 2025 to lock in current deduction rules. 

• Explore Donor-Advised Funds (DAFs) for flexible, tax-smart giving. 

• Use IRA QCDs to reduce taxable income while supporting causes you care about. 

As always, we encourage you to consult with your tax advisor to determine what is best for your situation. No matter what, your generosity continues to make a real impact in helping LCCRSF advance equity and justice. 

Thank you for standing with us—through every season and every change.