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New Charitable Giving Rules

Starting January 1, 2026, new legislation can make your giving work for you.
Philanthropy is now even more rewarding. Your support—whether it's your first gift or your fiftieth—continues to create a real impact, and you might find yourself eligible for new tax savings as well.

Recent legislation signed into law in 2025 introduces several new ways to make your giving work for you. While the rules take effect starting in the 2026 tax year, the core message remains the same: your support is more vital than ever.
 

Big News for Every Household

Previously, only about 10% of taxpayers—those who itemized their deductions—received a tax break for their donations. The new law changes that by making giving more inclusive.

The Universal Deduction: Even if you take the Standard Deduction (meaning you don't list out every expense), you can now deduct up to $1,000 (single) or $2,000 (married filing jointly). Note: this applies to cash gifts to eligible charities and generally doesn’t apply to contributions to donor-advised funds.
Why it matters: More people can now receive a tax incentive for charitable giving, even if they take the standard deduction.
Group of elderly gay men on a hike

Greater Flexibility for Major Gifts

If you are in a position to make a significant impact, the new law has made some of your most powerful tools permanent.

The 60% Limit is Here to Stay: You can continue to deduct cash gifts to public charities up to 60% of your Adjusted Gross Income (AGI). This higher limit was originally temporary but is now a permanent fixture, allowing you to be incredibly ambitious with your philanthropy.
Estate Peace of Mind: The estate tax exemption has been increased to $15 million per individual or $30 million for couples, indexed for inflation. This gives you a clear landscape to plan your family's legacy and long-term charitable bequests.

Pro Tips for Strategic Giving

The new legislation does introduce a few new thresholds, but with a little planning, you can navigate these easily:

The Giving Floor: For itemizers, charitable gifts are deductible only after they exceed 0.5% of your AGI.
Strategy: While it's too late to accelerate multiple years of giving into one year (including through a donor-advised fund) to avoid the new caps entirely, that strategy can be effective to clear the floor and maximize impact going forward.
New Top-Bracket Cap: For taxpayers in the top (37%) bracket, the tax benefit of itemized deductions is capped at 35%.
Strategy: Appreciated assets (like stock) can still be powerful. This doesn’t bypass the 35% cap, but it may help you avoid capital gains tax on the appreciation.

Contact Ken Mintzer

Contact us to talk about ways to support APLA Health and get the maximum benefit from your gifts this year—and in the years to come.

Ken Mintzer
Director of Development
213.201.1525

Disclaimer: This information is provided for educational purposes only and is not intended as legal, tax, or financial advice. Because individual tax situations vary significantly and the provisions of the new legislation are subject to specific IRS regulations, we strongly recommend you consult with your tax professional or financial advisor to determine how these changes affect your personal situation.
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