What the 2026 Tax Changes Mean for Charitable Giving

Tax papers on wood table with mug of coffee

As a donor or supporter of Community Housing Network (CHN), you may be wondering how upcoming tax changes could affect charitable giving. Federal tax updates expected in 2026 will shift how some deductions work, but they also introduce new opportunities for many donors.

At Community Housing Network, we want to keep you informed so you can make the best decisions for your household, your business, and the causes you care about most.

Please note: CHN does not provide tax, legal, or financial advice. All tax decisions should be made in consultation with your tax advisor or financial professional.

Key Charitable Giving Updates for 2026

Recent updates to federal tax policy will affect how charitable deductions work for individuals and businesses. Here are a few highlights.

1. A New Deduction for Non-Itemizers

For the first time, people who do not itemize their taxes may be able to deduct certain charitable gifts.

Up to $1,000 for individual filers
Up to $2,000 for joint filers
Applies to direct cash gifts to public charities

This change could open the door for more households to receive a tax benefit from their charitable giving.

2. A New Structure for Itemized Charitable Deductions

Under the updated rules:

Charitable gifts must exceed 0.5% of adjusted gross income (AGI) before they become deductible.

For many donors, this may encourage more intentional giving plans—such as making larger annual gifts, setting up recurring donations, or planning multi-year commitments.

3. Continued Opportunities for Major and Legacy Gifts

Under the updated rules, higher-income donors may see adjustments to how much of their charitable giving is deductible in a given year. However, charitable gifts remain a powerful planning tool for individuals who want to make a significant impact.

Many donors may choose to:

Make larger, impact-driven gifts to causes they care about most
Strategically time gifts across multiple years
Utilize donor-advised funds
Explore legacy or planned giving options

4. New Threshold for Corporate Giving

Businesses will also see an update:

Companies must donate at least 1% of taxable income to qualify for a charitable deduction.

This may encourage more intentional, strategic partnerships between businesses and the nonprofits they support.

What These Changes Could Mean for Donors

While the rules are evolving, experts do not expect charitable giving to decline significantly. Instead, giving may simply look a little different.

Some likely trends include:

More participation from everyday donors who can now deduct smaller gifts
Greater interest in monthly or recurring giving
More strategic, impact-focused gifts from major donors
Increased use of donor-advised funds and multi-year commitments

Why Charitable Giving Still Matters—Tax Benefits or Not

Tax deductions can be helpful, but they are only one part of the giving equation.

For thousands of individuals and families in Central Ohio, charitable support means:

A safe, stable home
Access to on-site supportive services
Opportunities to heal, grow, and thrive

At CHN, donor support helps provide housing and services to more than 2,000 residents, including children, seniors, and individuals overcoming homelessness.

Tips to Discuss With Your Tax Advisor

If you’re thinking about charitable giving this year, you may want to talk with your advisor about:

Whether you should itemize or take the standard deduction
The new non-itemizer charitable deduction
Timing or grouping gifts across multiple years
Donor-advised funds or other giving strategies
Corporate giving thresholds and planning
If a recurring monthly gift aligns with your financial goals

Give With Purpose in 2026

No matter how the tax rules change, charitable giving remains one of the most powerful ways to strengthen communities.

If you’re looking for a simple, intentional way to give in 2026, consider becoming a monthly donor. A recurring gift allows you to spread your giving across the year while providing reliable support for the residents who count on CHN every day.