What 2026 Tax Changes Mean for Your Charitable Giving
As a valued supporter of Helping Hands Hawai‘i, your generosity brings hope to local families in need. With several federal tax changes now in effect for 2026, we want to help you understand how these updates may affect your charitable giving.
What’s Different in 2026
- A charitable deduction is now available even if you don’t itemize.
- The universal charitable deduction for non-itemizers is $1,000 for individual filers and $2,000 for joint filers who make cash contributions. Cash contributions include checks, credit card charges, online donations and payroll deductions.
- Itemizers may need to give more to claim a deduction.
- For those who itemize, charitable contributions are deductible only to the extent they exceed 0.5% of your adjusted gross income.
- High-income donors may see a lower tax benefit per dollar donated.
- For individuals in the highest tax bracket, the value of the charitable deduction is capped at 35%.
- Business giving has a new threshold.
- Companies may claim tax deductions only on contributions that exceed 1% of their adjusted gross income.
- The tax advantage for major gifts remains strong.
- The deduction cap for large cash gifts to public charities remains at 60% of adjusted gross income. This can be especially beneficial for donors planning a significant one-time gift.
What to Do Now
- Talk to a financial advisor.
- A qualified tax or financial professional can help determine the best approach based on your giving habits and financial goals.
- Think about timing.
- Some donors may choose to “bunch” their giving by donating multiple years’ worth of contributions at once. Others may benefit from tools such as donor-advised funds or qualified charitable distributions from an individual retirement account. Planning ahead can provide more flexibility and options.
- Continue giving in the way that feels right for you.
- Tax incentives can be helpful, but they aren’t the only reason people give. When you support Helping Hands Hawai‘i, you’re helping local families access essential resources.
We Appreciate Your Support
Thank you for generous and thoughtful support. Your kindness helps local families navigate tough times with a greater stability and hope.
To learn more about ways to give, visit www.helpinghandshawaii.org/get-involved/donate/.
Note: This post is for informational purposes only and does not constitute tax or legal advice. Please speak with your financial advisor about your specific situation.
