What Nonprofits Need to Know About the 2026 Tax Changes

New federal tax rules taking effect in 2026 will change how many donors receive tax benefits for charitable giving. While tax law can feel distant from day-to-day fundraising, these updates directly affect donor behavior, gift timing, and how supporters think about their contributions.

Understanding what’s changing now gives nonprofits a chance to plan ahead, communicate clearly, and make it easier for donors to continue supporting the causes they care about.

Here’s what to know and how to prepare.

What Changes for Everyday Donors

Beginning in 2026, taxpayers who take the standard deduction will once again be able to claim a charitable deduction. Individuals will be able to deduct up to $1,000 in charitable gifts, and married couples filing jointly up to $2,000.

This matters because most U.S. taxpayers do not itemize their deductions. In recent years, many everyday donors received no tax benefit for their charitable gifts, even though they continued to give.

With this change, millions of households who support nonprofits through annual appeals, monthly gifts, or year-end donations will once again be able to see a tax benefit from their generosity. That can influence both how often people give and how much they choose to contribute.

For nonprofits, this creates an opportunity to reconnect with small and mid-level donors and remind them that their gifts now qualify for a charitable deduction, even if they do not itemize.

What Changes for Donors Who Itemize

Donors who itemize their deductions will see some new limits starting in 2026.

Charitable contributions will only be deductible to the extent they exceed 0.5% of a donor’s adjusted gross income (AGI). For example, a donor with an AGI of $200,000 would need to give more than $1,000 to receive a charitable deduction.

In addition, the value of each deductible dollar will be slightly reduced for taxpayers in the highest tax bracket.

These changes do not eliminate the tax benefit of giving, but they may influence how some major donors choose to structure their philanthropy. Some may “bunch” multiple years of gifts into a single tax year, use donor-advised funds, or give appreciated assets such as stock to maximize tax efficiency.

For nonprofits, the most important step is staying in close communication with major donors. Be ready to discuss multi-year pledges, timing options, and giving in-kind. Always keeping the focus on mission and impact, with tax considerations as a supporting detail.

What Changes for Corporate Giving

Corporate donors will also see new rules. Companies will need to contribute at least 1% of their taxable income before charitable gifts qualify for a deduction.

This means some companies may adjust how they structure their giving, while organizations with established philanthropy programs may consolidate or formalize their commitments.

For nonprofits, this increases the importance of building strong, long-term corporate partnerships. Clear reporting, measurable impact, and alignment with corporate social responsibility goals will matter more than ever.

How to Communicate With Donors

Most donors are not closely tracking tax policy changes, even those who work with financial advisors. That’s why clear, simple communication matters.

Consider tailoring your messaging by donor type:

• Everyday and mid-level donors: Let them know that their charitable gifts will once again qualify for a tax deduction even if they do not itemize.

• Major donors: Share high-level information about the new deduction threshold and encourage conversations about timing and gift structure.

• Corporate partners: Emphasize long-term impact, community leadership, and the value of sustained giving relationships.

Keep your messaging focused on what donors make possible through their generosity, with tax benefits presented as helpful context, not the main reason to give. And always encourage donors to consult their own tax advisors when making financial decisions.

Looking Ahead

Tax policy changes can influence giving patterns, but the nonprofit sector has always adapted to new rules and new realities.

When donors are informed, supported, and connected to a meaningful mission, they continue to give. The 2026 changes create new opportunities to engage everyday donors while encouraging more thoughtful planning with major and corporate supporters.

Organizations that prepare now, by strengthening donor relationships, improving communication, and making giving easy and clear, will be well positioned to navigate the changes ahead and continue growing support for their mission.