New tax rules are coming in 2026 that could change how you give. However, there is still time to give in 2025 before the new rules are applied. Below is a breakdown of what is changing and what you can still do in 2025 to maximize your giving. No matter how you give, your donation makes a direct impact to our mission of serving families of fallen and catastrophically injured heroes.
What is Changing?
- For 2026, the charitable deduction threshold has a new floor of 0.5% of your Adjusted Gross Income (AGI) for individuals who itemize deductions, meaning you can only deduct contributions exceeding this amount.
- Taxpayers who take the standard deduction will once again receive a limited tax break for charitable donations—up to $1,000 for individuals or $2,000 for couples filing jointly.
- Capping the tax benefit of itemized deductions at a 35% rate for taxpayers in the top 37% income tax bracket. This means high-income individuals in the top bracket will get a maximum tax benefit of 35 cents for every dollar they deduct, rather than the full 37 cent.
- For the 2026 tax year, corporate giving deductions will be subject to a 1% floor on taxable income, while the overall 10% ceiling remains in place. Only contributions that exceed the 1% threshold, up to the 10% cap, will be deductible.
2025 Year-End Giving Guide: Maximize Your Tax Benefits
- Consider making major charitable gifts, especially of appreciated assets, before the end of 2025 to lock in the higher deduction value.
- Consolidate multiple years’ worth of charitable contributions into a single tax year to exceed the standard deduction threshold and itemize deductions in that year, while taking the standard deduction in other years.
- Fund a donor-advised fund (DAF) to BackStoppers in the future. Contribute assets to a sponsoring organization, which grants an immediate tax deduction. You can then invest these funds to potentially grow the charitable giving balance, and later recommend grants to qualified charities at your own pace through the DAF’s online portal.
- Support The BackStoppers with your IRA! If you’re 73 or older, you can make a tax-free gift from your IRA directly to us, satisfying your RMD at the same time. It’s an easy way to make a significant impact.
Speak with your financial advisor to learn more the best option for you. Then make your year-end giving plans to support BackStoppers.