Congress recently passed new tax legislation that will change how charitable contributions are treated starting in 2026. While the bill is complex, we want to make sure you’re aware of how these updates could affect the ways you choose to give to NETRF and other causes that matter to you.
Here’s What’s Changing
1. Tax Deductions Available Without Itemization
Beginning in 2026, individuals who don’t itemize deductions on their taxes will still be able to deduct up to $1000 in charitable contributions – or $2,000 for joint filers. This presents new opportunities to benefit from giving, regardless of how you file.
2. New Threshold for Itemized Deductions
For those who do itemize, only the portion of charitable giving that exceeds 0.5% of income will be deductible. For example, with an income of $200,000, the first $1,000 of giving wouldn’t be eligible for a deduction. This change may encourage some to combine multiple years of giving into a single year – sometimes called “bunching”- to exceed the threshold and maximize tax benefits. If you are considering a multi-year commitment for example, it may be worth exploring whether a larger gift now or “bunching” into a single tax year would be more advantageous.
3. Slightly Lower Deduction Limit for Major Gifts
The maximum deduction for high-income donors will be capped at 35% of a gift’s value, down from 37%. While this reduces the tax benefit, the impact of every gift remains deeply meaningful – and often transformational. You may want to consider making a gift before the 2026 changes take effect to take advantage of the current deduction limit.
4. Estate and Legacy Giving Considerations
The estate tax exemption will rise to $15 million per person, which may influence decisions around legacy gifts. These changes highlight the importance of aligning giving with personal values and long-term goals.
We’re Here to Support You
At NETRF, we know that research changes lives – and your giving makes it possible. If you’re considering a gift, we encourage you to speak with your financial advisor to understand what’s best for your situation. And if we can be helpful – whether by providing information, working with your advisor, or talking through options – we’re here for you.
Thank you for being part of our mission and supporting Breakthroughs Today, Cures Tomorrow.