Yes it’s really true: New legislation has a silver lining for charities.
There’s no denying that the bill passed by Congress and signed into law by President Trump on July 4 will cut essential safety net programs and increase demand for services at a time when many nonprofit organizations are already reeling. After months of decimating funding cuts, aggressive regulatory threats, and ideological attacks on so many organizations, so much in the legislation is one more body-blow to our sector.
But there is also a silver lining that it behooves us to embrace: The new law restores and expands key charitable giving incentives — and it could have a powerful impact on fundraising.
Most significantly: Starting in 2026, a universal charitable deduction is back. Non-itemizers (the vast majority of taxpayers) can now deduct up to $1,000 in charitable gifts — or $2,000 for married couples — even if they take the standard deduction. This is an unequivocal win for small and many mid-level donors.
It’s true that there is a new .5% Adjusted Gross Income (AGI) floor for itemizers — which means that only donations above that threshold are deductible — but this new provision will mostly affect a small subset of wealthier donors with lower giving habits.
We all know that mission, impact, and values are still what matter more than ever in motivating donors — but the tax benefit of giving is now accessible to a much broader population.
We are taking a careful look at the implications and opportunities for our clients — and talking with them about new segmentation strategies, targeted messaging, and creative approaches that inspire generosity while making the most of the new tax landscape.
Stay tuned!
The Sanky Team
