Give Before 2026: How Upcoming Tax Law Changes Could Impact Your Charitable Giving

While we know you give from the heart, not just for the tax benefit, we also know that many donors like to give wisely and strategically. That’s why we’re encouraging all our supporters to consider making their larger or planned gifts before the end of 2025.

What’s Changing in 2026?

Starting in 2026, new federal tax rules will take effect that could limit the tax advantages of giving for many individuals and families:

• A new deduction for non-itemizers… with limits
  
  Taxpayers who don’t itemize will be able to deduct up to $1,000 (or $2,000 for couples) in charitable gifts. While this is new and helpful, it’s capped at a relatively low amount.
  

• A new threshold for itemized deductions
  
  If you itemize, you’ll only be able to deduct the portion of your charitable gifts that exceeds 0.5% of your adjusted gross income (AGI). For many, this means smaller donations won’t count toward deductions anymore unless you give more or bunch gifts into one year.
  

• Reduced tax benefit for high earners
  
  If you’re in the highest tax bracket, your maximum charitable deduction rate will drop from 37% to 35%, reducing the tax value of large gifts.

Why 2025 Is the Right Time to Give

This year may be the last chance to give under the more favorable tax rules currently in place. Donors who make gifts in 2025 can still:

• Deduct more without hitting the 0.5% AGI floor

• Get a higher deduction rate (especially for high earners)

• Strategically "bundle" gifts to maximize impact and tax savings

Give Now to Make It Go Further

While tax benefits can help you plan smarter, the heart of giving is about making a difference, and that’s exactly what your support does every day here at Oakland Family Services. Last year alone, 22 children found permanent homes through foster care and adoption, and hundreds of individuals showed measurable improvement in mental health and substance use recovery.

Every gift helps us build brighter futures. And right now, every gift may go even further. If you’ve been considering a special gift, an increase to your usual giving, or even a legacy or planned gift, we encourage you to do so before the end of 2025 to take full advantage of current tax incentives.

Your support helps families thrive—give today and be the reason someone finds stability, hope, and a brighter future.

Learn about the different ways to give before 2026.

Please consult with your tax advisor about your individual situation.