Tax Deduction for Charitable Donations Expanded Starting 2026
The 'One Big Beautiful Bill' has reinstated a permanent tax rule allowing non-itemizing taxpayers to deduct up to $1,000 in charitable contributions beginning next year. This change, effective for donations made in January 2026 or later, mirrors a temporary pandemic-era provision and aims to reverse the decline in charitable giving observed since 2017.
Taxpayers who typically claim the standard deduction will now have an incentive to donate, as these contributions can reduce their 2026 taxable income when filed in 2027. The MOVE is expected to stimulate philanthropy by restoring a key financial benefit for middle-class donors.
Charitable organizations anticipate increased donations as the deduction becomes accessible to millions who previously had no tax incentive to give. The provision's permanence provides long-term stability for both donors and nonprofits planning their fundraising strategies.
