One of the benefits that many of your donors receive from making a charitable contribution is the ability to claim tax deductions based on their giving.
But as you might already know, this will look a bit different in 2026. The signing of the One Big Beautiful Bill Act (OBBBA) in 2025 introduced several major changes that are coming into effect for this tax year.
Let’s take a look at available charitable contribution deductions this year, as well as why and how you might share this information with your donors.
Changes to Charitable Contribution Deductions
Here are a few key changes to charitable contribution deductions put in place by the OBBBA.
New Deduction for Non-Itemizers
Those who do not itemize their deductions can now deduct qualifying cash contributions! Individuals may deduct up to $1,000 of contributions, while married couples filing jointly can deduct up to $2,000.
New Charitable Deduction Floor for Itemizers
On the other hand, taxpayers who do itemize can only claim a deduction for contributions that exceed 0.5% of their adjusted gross income (AGI).
Permanent Percentage of AGI Gift Cap
While this policy isn’t new, it’s now here to stay! The itemized deduction for cash donations to certain organizations is limited to 60% of a taxpayer’s AGI. Amounts over the 60% limit can be carried forward and deducted across five years.
Along similar lines, deductions for gifts of long-term appreciated assets are capped at 30% of a donor’s AGI.
New Cap for the Top Tax Bracket
If a donor falls into the top 37% tax bracket, the value of their deduction is capped at $0.35 per dollar. This has decreased from $0.37 per dollar.
Each of these changes will apply to the 2026 tax year, meaning donors need to be educated prior to the 2027 tax filing season.
Tip from the Playbook: To fully understand each of the charitable contribution deductions available to your donors, corporate partners, and other supporters – especially as they apply to your specific organization – we recommend checking with a tax expert.
Why You Should Talk to Your Donors About Tax Deductions
Making sure your supporters are well-informed about the charitable contribution changes for 2026 is a great way to build relationships and steward them toward additional gifts.
Yes, this information may affect their tax planning, and some may change their giving habits. But offering full transparency about how these tax laws impact your donors builds trust and confidence in your organization.
Those who do not itemize may make additional gifts if they know they have not yet hit the new maximum. Others may still want to support you, but will shift toward giving methods that make more sense for their tax situation. This might look like giving from their donor-advised fund (DAF) or using a “bunching” strategy.
And many will simply appreciate going into tax season prepared to get the most out of their available deductions!
Charitable Contribution Details Your Supporters Need to Know
To further improve your relationship with your donors, don’t just tell them about the charitable contribution deductions available to them. Let them know the details behind these deductions, including the information they’ll need to claim them.
This will be especially important in 2026, as several of your donors may be claiming a new charitable contribution deduction. Or, they might even claim one for the very first time!
Make sure to share:
- What specifically qualifies for a deduction – For example, non-cash contributions and cash contributions made either to supporting organizations or to a DAF do not qualify for the new deduction for non-itemizers.
And itemizers can only claim aggregate contributions that exceed 0.5% of their AGI, but different caps exist for cash gifts and gifts of appreciated assets. - The information needed to claim a deduction – Remind donors that they will need to provide the IRS with specific details and records, such as receipts or written communications from your organization.
- A recommendation to check with a tax professional – Every taxpayer’s situation is unique. Include a disclaimer in your outreach that encourages donors to contact their tax professional for advice on their specific situation and available opportunities.
But how do you get this information to your donors? Let’s look at a few different options!
6 Ways to Talk to Your Donors About Taxes
Here are six ideas for talking to your donors about taxes and the charitable contribution deductions available to them.
1. Write a Blog About Changes to Charitable Contribution Rules
Take a page from our book and post a blog about these changes on your website!
Consult a tax professional about the specific ways these new charitable tax deductions could affect your donors and your organization, then write an article explaining them to your supporters.
2. Share Tax Break Details via Email
To make sure your donors receive the important information shared in this article, send out an e-newsletter. Provide a brief overview of the changes in your email before directing your audience to your blog to learn more.
3. Create a Series of Social Media Posts
Generate a series of social media posts informing donors about the new charitable contribution deductions and how they may be impacted.
Use easy-to-understand graphics and short-form videos to capture attention and engage your audience. Making the topic the focal point of these posts – and not your organization – will help expand your reach.
Consider linking your blog in the comments to provide more information and drive the audience to your website.
4. Host a Charitable Giving and Tax Planning Workshop
Provide your community with an opportunity to learn more about tax planning, giving strategies, and the changes to charitable tax deductions.
Team up with a local tax professional or firm to hold a free workshop focused on these topics. It can be held in-person or online (or both!), but make sure to reserve enough time for questions.
You can also consider offering time before or after the session for individual meetings, giving you the opportunity to meet one-on-one with current and potential donors.
5. Remind Donors About the Tax Year Deadline
As the year comes to a close, include reminders about the tax year deadline in your fundraising outreach. You don’t need to completely change up your giving season messaging, but adding mentions of this approaching deadline can provide a sense of urgency.
Around 10% of all annual giving happens in the last couple of days of the year, and tax deductions are a big reason why!
6. Include Information in Gift Acknowledgments
You should already be acknowledging every gift made to your organization.
The IRS requires written acknowledgments for charitable contributions of $250 and above, but it’s a best practice to show gratitude for donations of all sizes. And this is especially true now that even non-itemizers can claim charitable contribution deductions!
When you send an acknowledgment letter, include a line or two recommending that the donor keep it for their records and tax filing.
These letters should be sent immediately following gifts made throughout the year. Your organization should also send acknowledgment letters along with year-end tax summaries each January.
Tip from the Playbook: Your 2026 year-end tax summary letter is a great place to include additional reminders about the tax law changes. Remember, this will be the first time many of your donors are claiming charitable contributions!
Here’s an example: “We have included a comprehensive summary of your 2026 tax year contributions for your records. There have been several changes to charitable contribution deductions this year – we recommend consulting with a tax expert to maximize your savings.”
Are You Ready to Talk Taxes?
Here, we’ve covered the basics of 2026 charitable contribution deductions and shared a few ways to talk about taxes with your donors.
Are you ready to apply these ideas?
If you need a little more guidance — whether about charitable contributions or other nonprofit topics — MVP Advisors is here for you.
Our team of experienced nonprofit consultants is ready to help with fundraising, strategic planning, marketing, content development, and more! Set up a call or send us an email today to get started.