What Donors Should Know for 2025-2026

Octubre 29, 2025

A new tax law may influence when and how you choose to give for 2025-2026.

Starting in 2026, individuals who do not itemize deductions will have access to a significantly larger charitable deduction, which is great news for many donors.

For those who itemize deductions, the new law introduces limits that could make this year a particularly advantageous time to make contributions. By acting before Dec. 31, you can maximize both your impact and your deduction while supporting the students at Whittier College. Beginning retroactively in 2025, or starting on January 1, 2026, new tax rules will impact how you donate to charities and the amount you can deduct. Here’s what matters most:

Lower Tax Rates Stay

The One Big Beautiful Bill Act (OBBBA) keeps the lower tax rates from 2017 in place. The standard deduction remains higher and will increase again in 2025.

New Senior Deduction

If you’re 65 or older, you’ll get an extra $6,000 added to your standard deduction from 2025 to 2028. This extra amount starts to phase out if your income is over:

  • $75,000 (single)
  • $150,000 (married)

New Charitable Giving Rules (Starting 2026)

For Everyone:

  • Deduct up to $1,000 (single) or $2,000 (married) for gifts to charity. This is in addition to the standard deduction. Donor-advised funds (DAFs) do not count for this deduction.

For Itemizers:

  • You must give at least 0.5% of your income before getting a deduction.
  • Top earners will see a lower rate: 35% instead of 37%.
  • You can still deduct cash gifts up to 60% of your income.

Estate & Gift Tax Exemption

In 2026, individuals can transfer up to $15 million each (or $30 million for couples) without incurring estate or gift taxes. This amount is adjusted for inflation and is a permanent provision. As most estates will remain tax-free, donors may want to explore other tax-advantaged methods of giving.

What This Means for Your Giving

  • Non-itemizers can start deducting small gifts in 2026.
  • Itemizers will need to give a little more to claim deductions.
  • Top earners get a slightly smaller tax break.
  • Cash gift limits and estate exemptions remain the same.
  • Seniors get a larger deduction for several years.
  • Non-itemizers (after age 70 1⁄2) can still benefit by directly giving their IRA distributions to charities instead of withdrawing for personal use and paying income tax on that withdrawal.

If you’re considering a gift, consider giving before 2026 to take advantage of the current rules.

After that, new limits may reduce your tax savings slightly. The OBBBA keeps taxes lower, helps seniors, and supports charitable giving — with a few new limits starting in 2026.

Your contributions are already an essential part of Whittier College’s story — a narrative that shapes lives, careers, and futures. Want to make the most of your gift to Whittier College in 2025? Contact Kim Greenhall at 562.907.4214 or kgreenha@whittier.edu.

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