Federal tax laws that impact charitable giving are about to change, and these updates could shape the way you and others support the ministries you love. To help donors, Dr. Bill Stanczykiewicz has published a helpful article on the AFP blog. 

Beginning in 2026, all taxpayers will once again be able to deduct charitable gifts through the Universal Charitable Deduction, while higher earners and businesses will see new limits and rules that may influence larger donations. At the same time, increases in the state and local tax deduction could make itemizing—and therefore giving—more attractive to many households. Because your generosity makes Christ-centered education possible for students across Indiana, we encourage you to stay informed.

Key Changes 

• UCD returns in 2026 (up to $1,000 single / $2,000 joint)

• Democratizes giving; may encourage broader participation

• Ceiling: Top earners get deductions at a lower rate—may reduce giving by $2–$8B

• Floor: Itemizers lose the first 0.5% of AGI deduction when forgoing UCD

• High-income donors: It’s a good time to talk with your tax advisor

• SALT cap increase: More itemizers → potential boost in giving

• Corporate donations: Only above 1% of pre-tax profits remain deductible

• Marketing sponsorships: Potentially deductible under IRS rules

• Overall advice: Know the rules, but remember: taxes matter, but values matter more

Read the full article here: https://afpglobal.org/federal-taxes-and-charitable-giving