7 Things You Need to Know

Changes to the tax code beginning January 1, 2026, could affect how — and when — you choose to give to Saint Michael’s College and other nonprofits.

What’s new:

  1. Tax benefit for non-itemizers
    Even if you don’t itemize, you can deduct up to $1,000 (single filers) or $2,000 (married couples). So even smaller donations can make an impact. Note: Gifts to donor advised funds are excluded.
  2. New floor for itemizers
    You will need to give at least 0.5% of your adjusted gross income (AGI) to claim a charitable deduction. Consider maximizing your giving in 2025 before the new rule takes effect.
  3. New limit for top earners
    Currently, top earners get a 37-cent tax benefit for every $1 deducted. Starting in 2026, that drops to 35 cents. If you are in the top tax bracket, consider giving more this year to avoid losing tax benefits next year.

What stays:

  1. Income tax brackets
    The new law permanently extends the current tax rates.
  2. Standard deduction
    The current deduction will remain high. In 2026, it will be $16,100 for single filers and $32,200 for married couples filing jointly. If you don’t itemize, you may still benefit if you give appreciated stock, real estate, or, if you are 70½ or older, from your IRA.
  3. Deduction limit for cash gifts
    You can still deduct cash gifts of up to 60% of your AGI. Consider combining your cash and non-cash assets (often called blended giving) to maximize your tax benefits and impact.
  4. Estate and gift tax exemption
    This exemption will remain high but adjust for inflation in 2026 to $15 million per individual and $30 million per married couple filing jointly. For those with estates under this amount, it's wise to focus on current giving to receive tax benefits.

Want to make the most of a gift to St. Mike’s in 2025? We’d be happy to discuss the best ways you can create a legacy.