The IRS Has Entered the Fundraising Chat

We're nonprofit consultants, not accountants or attorneys, so we generally leave tax advice to the experts. But when tax law changes affect charitable giving, we pay attention! And this year, there are some important changes worth knowing about—and sharing with your donors.

NEW: CHARITABLE TAX DEDUCTIONS

For the first time in several years, taxpayers who don't itemize can receive a federal charitable deduction:

• Up to $1,000 for individual filers

• Up to $2,000 for married couples filing jointly

The deduction applies to qualifying cash gifts to eligible charities. This is good news for the many donors who take the standard deduction!

There's also a change for donors who itemize: charitable contributions are now deductible only to the extent they exceed 0.5% of adjusted gross income.

WHAT SHOULD NONPROFITS DO?

Consider adding a short message to your year-end appeals, donation pages, and donor emails:

“New for 2026! Even if you don't itemize your taxes, you may now qualify for a federal tax deduction for cash gifts to eligible charities—up to $1,000 for individuals or $2,000 for married couples filing jointly. Consult your tax advisor to learn how the new rules may apply to you.” 

THE CHART WORK TAKEAWAY

Most people give because they care about your mission, not simply because of a tax deduction. Highlight a compelling story that shows donors the difference their generosity can make.

And when they give, thank them promptly and personally—not just because it's good donor stewardship, but because someone who chooses to support your work deserves a sincere thank-you.

Think of the new tax deduction as an added incentive to give—not the centerpiece of your appeal.

For more details on exactly what counts as deductible with this new rule, see the IRS guidance on the 2026 tax changes.