The 2026 Charitable Deduction for Non-Itemizers: What Nonprofits Should Tell Donors

This post covers federal income tax only. States set their own rules. Every change below applies to taxable years that begin after December 31, 2025 (P.L. 119-21 §§70111, 70424, 70425, 70426). For most donors, that means gifts made in 2026 and claimed on returns filed in 2027 (IRS Publication 6196).

What changed for charitable deductions in 2026?

The law known as the One Big Beautiful Bill Act, Public Law 119-21, made several changes that touch charitable giving. The IRS now calls the package the Working Families Tax Cuts (IRS). This post covers the five below. A separate tax credit for gifts to scholarship granting organizations starts in 2027 and isn’t covered here.

For most nonprofits, the first two rows matter most. The first gives a tax benefit to donors who had none. The second takes a little away from donors who itemize.

What is the charitable deduction for non-itemizers?

A donor who doesn’t itemize can deduct up to $1,000 of cash gifts to eligible charities, or $2,000 on a joint return (IRS Topic 506). The rule is in section 170(p) of the tax code (26 U.S.C. 170(p)). It is permanent. An earlier version for 2021 allowed only $300, or $600 on a joint return.

The deduction is taken when the donor figures taxable income. It doesn’t lower adjusted gross income (IRS training script, July 2026). The IRS draft of the 2026 Form 1040 puts it on line 12f, after the adjusted gross income line (draft Form 1040). Most people who claim it will also take the standard deduction, though the IRS notes that some donors who don’t itemize can’t take the standard deduction, such as a married person filing separately whose spouse itemizes (Publication 6196).

The $1,000 or $2,000 limit is per tax return, not per charity. A donor who gives $600 to you and $600 to another charity still has a $1,000 limit in total, or $2,000 on a joint return.

Which gifts count toward the $1,000 or $2,000?

The law is narrow. A gift counts only if it meets all of these conditions (26 U.S.C. 170(p)):

• Cash. Checks, card payments, and bank transfers count. Stock, clothing, and other property don’t (IRS).
• Made during the year. Gifts carried over from earlier years don’t count.
• To an eligible organization. The organization must be one described in section 170(b)(1)(A). That covers most public charities, churches, schools, hospitals, government units, and private operating foundations.
• Not to a supporting organization. Gifts to a supporting organization under section 509(a)(3) don’t count.
• Not to a donor-advised fund. Gifts to set up or add to a donor-advised fund don’t count.

Gifts to most other private foundations don’t count. Gifts to individuals never count, including gifts given through a charity but earmarked for a specific person or family (IRS Topic 506; Publication 526).

Publication 6196 explains how to check an organization’s status. In the IRS Tax Exempt Organization Search tool, pick “Pub. 78 Data” and look at the deductibility code. The IRS says organizations with codes such as PC, POF, or FED are generally eligible (Publication 6196). Codes SO, SONFI, and SOUNK mean a supporting organization (Pub. 78 data dictionary), and gifts to those don’t count toward this deduction. Some eligible groups, such as certain churches, government units, and groups under a group exemption, may not show up in the tool at all.

What changed for donors who itemize?

Donors who itemize now get no deduction for gifts up to 0.5 percent of their contribution base. For most people, the contribution base is their adjusted gross income. Only gifts above that amount count (§70425). The IRS describes this as losing “the benefit of the first half percentage point” (IRS).

A fictional example: a couple with $120,000 of adjusted gross income itemizes and gives $3,000 in 2026. The first $600 (0.5 percent of $120,000) doesn’t count, so $2,400 can be deducted, subject to the other limits. This is an illustration of the formula, not a tax calculation for any real donor. In a year when a donor’s gifts also go over the percentage limits, the amount the floor disallows can carry forward (§70425(a)(2)).

Two other changes reach smaller groups. The 60 percent of income limit for cash gifts to public charities is now permanent. And itemized deductions are now reduced by 2/37 of the smaller of two amounts: the itemized deductions, or the amount by which taxable income, figured before itemized deductions, goes over the start of the 37 percent bracket (§70111). By our arithmetic, a deduction that would otherwise save 37 cents on the dollar now saves about 35.

Does the 1 percent floor change corporate gifts?

Yes. A corporation can now deduct only the gifts above 1 percent of its taxable income, up to the existing 10 percent ceiling (§70426). Sponsorships are a separate question. Our post on corporate giving and sponsorships covers the difference.

When does a year-end gift count for 2026?

The date of the gift decides the tax year, and the IRS has a rule for each way of paying (IRS Publication 526):

• Check. Counts on the date it is mailed.
• Credit card. Counts in the year the charge is made.
• Text-to-give. Counts in the year the text is sent, if the gift is charged to the phone bill.
• Pay-by-phone account. Counts on the date the bank pays the charity.

If your online form or payment processor posts gifts a day or two late, find out now. A gift a donor made on December 31 should show that date on the receipt.

What should a year-end acknowledgment letter include?

For any cash gift, the donor needs a bank record or a written communication from the charity that shows the charity’s name, the date, and the amount (IRS Topic 506). That matters more now that donors who don’t itemize can claim cash gifts. A clear receipt for every gift helps them.

For any single gift of $250 or more, the donor needs a written acknowledgment from you before they can claim the deduction (IRS Publication 1771). It should include:

1. Your organization’s name.
2. The amount of any cash gift.
3. A description, but not the value, of any property given.
4. A statement that you gave no goods or services in return, if that is true.
5. If you did give something in return, a description and a good faith estimate of its value.
6. If you gave only intangible religious benefits, a statement saying so.

The donor must receive it by the date they file, or by the filing due date with extensions if that comes first. You don’t need the donor’s Social Security number. If a donor pays more than $75 and gets something back, such as a gala dinner, you must also give a written statement. It tells the donor that only the amount above the value of what they received is deductible, and gives a good faith estimate of that value. Publication 1771 lists exceptions, including token items, certain membership benefits, and intangible religious benefits. The penalty for missing that statement is $10 per gift, up to $5,000 per event or mailing (Publication 1771).

How can a year-end appeal mention the new deduction?

Keep it accurate and short, and send donors to their own tax advisor. A few rules of thumb from what the law says:

• Say “many donors who don’t itemize,” not “everyone.”
• Name the limits: cash only, $1,000 or $2,000 per return, and not gifts through a donor-advised fund.
• Don’t promise a donor a tax result. You don’t know their return.
• The deduction doesn’t apply to gifts to supporting organizations. If your Pub. 78 code isn’t one the IRS lists, Publication 6196 says additional rules may apply, so ask your CPA before you mention it.

Sample wording, for illustration only and not tax advice: “For gifts made in 2026, many donors who don’t itemize can deduct up to $1,000 of cash gifts to eligible charities, or $2,000 on a joint return. Gifts through a donor-advised fund don’t count toward this deduction. Please check with your tax advisor about your own situation.”

Frequently asked questions

References: Public Law 119-21, sections 70111, 70424, 70425, and 70426; 26 U.S.C. 170(b)(1)(I) and 170(p); IRS Topic 506 (updated September 24, 2026); IRS Working Families Tax Cuts provisions page (updated October 22, 2026); IRS Publication 6196 (October 2026); IRS Publication 526 (2025); IRS Publication 1771 (Rev. 11-2023); Pub. 78 data dictionary; IRS draft 2026 Form 1040 (draft, not for filing); IRS training script on the individual tax provisions (updated July 14, 2026). All checked October 31, 2026.

This article is general information. It is not legal, tax, accounting, or financial advice, and reading it does not make you our client. Laws, regulations, and funder policies change, so check the cited sources and your own award terms before you act. Aventis West is not a law firm or an accounting firm. For advice on your own situation, talk to a qualified attorney or CPA. See our terms of use.