What are the new rules for charitable giving deductions starting in 2026?

Starting in 2026, only charitable giving that exceeds 1% of your adjusted gross income will be deductible.

How can I maximize my charitable deductions before 2026?

Consider "bunching" your donations into a single tax year, potentially using a donor-advised fund to get the full deduction now.

What is a donor-advised fund and how does it help with taxes?

A donor-advised fund allows you to donate now for a tax deduction and invest the funds to distribute to charities over time.

Home / Business and Economy / Giving Tuesday Tax Rules Change: Act Now!

Giving Tuesday Tax Rules Change: Act Now!

3 Dec, 2025

•

Summary

New rules starting 2026 limit charitable giving deductions.
Deductions are capped at 1% of adjusted gross income.
Donor-advised funds offer a strategy to 'bunch' donations.

Giving Tuesday Tax Rules Change: Act Now!

Major changes to charitable giving tax rules are approaching in 2026, prompting year-end planning. For taxpayers accustomed to deducting their donations, a significant shift means only contributions exceeding 1% of their adjusted gross income will be deductible. This will affect many, as even moderate donations may no longer qualify for deductions under the new regulations.

To mitigate the impact, financial experts are recommending strategies such as "bunching" charitable contributions. This involves consolidating multiple years' worth of donations into a single tax year to maximize current deductibility. Donor-advised funds are highlighted as a key tool for implementing this strategy effectively.