Giving with Intention: What Upcoming Tax Changes Mean for Your Support

As year-end approaches, many donors begin thinking not just about how to give — but when. With federal tax law changes scheduled to take effect in 2026, thoughtful supporters are asking an important question: Is it better to give now, or wait?

The answer depends on how you typically file your taxes and what the new rules may mean for you. Below is a high-level overview to help you make informed decisions as you plan your charitable giving.

How Charitable Deductions Work Today

When filing a federal tax return, individuals generally choose between two approaches:

The standard deduction
This is a set amount that reduces your taxable income automatically. For 2024, the standard deduction is:

• $14,600 for single filers

• $29,200 for married couples filing jointly
  (These figures are adjusted annually for inflation.)

Itemized deductions
Instead of taking the standard deduction, you may choose to itemize specific expenses — such as mortgage interest, medical costs, and charitable contributions. Itemizing typically makes sense only if the total of these expenses exceeds your standard deduction.

If you’re unsure which method you usually use, your accountant or tax preparer can quickly clarify.

What’s Changing in 2026 — at a Glance

Beginning in 2026, several updates to the tax code will affect how charitable gifts are treated:

For donors who do not itemize

• Through 2025: Charitable gifts do not generate a federal deduction.

• Starting in 2026: Donors may deduct up to $1,000 in cash donations ($2,000 for married couples filing jointly) made to qualifying public charities.

For donors who itemize

• Through 2025: Cash gifts to qualifying charities may be deducted up to 60% of adjusted gross income (AGI).

• Starting in 2026: Only the portion of charitable giving that exceeds 0.5% of AGI will be deductible.

For higher-income donors

• Through 2025: Charitable deductions reduce taxes based on the donor’s full marginal tax rate (up to 37%).

• Starting in 2026: The tax benefit is capped, limiting savings to a maximum of 35% per dollar donated.

What is AGI?
Adjusted Gross Income (AGI) is your total income minus certain adjustments, such as retirement contributions or student loan interest.

Example:
If your total income is $120,000 and your adjustments equal $10,000, your AGI is $110,000. Under the 2026 rules, the first 0.5% of that AGI — $550 — would not count toward a charitable deduction. Only donations above that amount would be deductible.

What Types of Organizations Qualify?

The charitable deductions discussed above apply only to donations made to qualifying public charities under IRS rules. Examples include:

• Community-based nonprofits with broad public support (such as Wonder Girls)

• Religious organizations

• Educational institutions, such as schools and universities

Not all charitable entities qualify, and eligibility can vary by organization type. To confirm whether a nonprofit is eligible, donors can use the IRS Tax-Exempt Organization Search and review the organization’s “Deductibility Status”:
👉 https://apps.irs.gov/app/eos/

Organizations listed as a Public Charity or under Section 170(b)(1)(A) generally qualify.

Should You Give Now or Wait?

There’s no one-size-fits-all answer.

• If you currently itemize deductions, gifts made before December 31, 2025 will fall under the existing rules, which may provide a more favorable deduction.

• If you typically take the standard deduction, the 2026 changes may allow you to deduct a portion of your charitable giving for the first time.

Because individual circumstances vary, speaking with a tax professional can help you determine the most strategic timing for your giving.

Beyond the Tax Benefit

Tax considerations can guide your planning, but the heart of charitable giving is impact. Every gift — whether made today or in the future — helps expand opportunity, confidence, and leadership for girls and young women through Wonder Girls programs.

Your generosity supports lasting change, far beyond a single tax year.

Disclaimer
This article is for informational purposes only and does not constitute tax, legal, or financial advice. Please consult a qualified professional regarding your specific situation.