Good News for Non-Itemizers
If you are one of the 90% of American taxpayers who takes the standard deduction rather than itemizing your deductions, there is an exciting change that will benefit you this year! Charitable tax deductions are no longer only available to taxpayers who itemize their deductions.
Starting in 2026, you can deduct up to $1,000 ($2,000 for married couples) for the charitable gifts you make, including to CLC.
As an example, imagine a CLC team member who gives $20 back through each paycheck to help fellow team members through the Critical Needs Fund. At the end of the 2025 tax year, they have given a total of $520 to support fellow team members.
Like 90% of taxpayers, their deductible expenses (mortgage interest, state and local taxes, etc.) are lower than the standard deduction, so they take the standard deduction rather than itemizing. They do not receive an additional benefit for their $520 charitable contributions to CLC.
Let’s say they keep their giving at the same level in 2026. For tax year 2026, they will be able to take the standard deduction and then ALSO deduct the $520 in charitable contributions they made to CLC, providing an additional reduction in their taxes.
This is a welcome change that will benefit most of our supporters, rewarding their caring contributions with a straightforward, above-the-line deduction they can claim alongside the standard deduction.
(A quick note: This new deduction applies to cash gifts made directly to qualifying organizations like CLC. Gifts made to Donor-Advised Funds or private foundations are not eligible for this particular deduction.)
A Little More Complicated for Itemizers
For taxpayers who do itemize their deductions, the new tax situation is a little bit more complex. If you itemize your deductions, charitable deductions work a little differently beginning in 2026. A new rule introduces what’s called a “floor,” meaning a small portion of your charitable giving does not receive a tax benefit. This floor is equal to 0.5% of your adjusted gross income.
As an example, imagine an itemizing taxpayer with an adjusted gross income of $150,000. The first $750 of their charitable contributions in a year will not be deductible. Only amounts that they give above $750 will qualify for a tax benefit.
For our supporters who itemize their deductions, this change will slightly reduce the overall tax benefit of their charitable giving. These supporters may want to think about some tax-smart giving options like ‘bunching’ to maximize the tax-benefits of their giving.
Donor-Advised Funds – a Smart Way to ‘Bunch’
‘Bunching’ is a tax-smart strategy of combining multiple years of charitable gifts into a single tax year. Supporters who itemize can use bunching to help offset the impact of the new floor for itemized charitable giving deductions.
Donor-Advised Funds can be especially helpful for this approach, because they allow donors to take a deduction in one tax year while continuing to support their favorite qualifying organizations over time.
Let’s imagine a supporter who gives $5,000 every year to CLC to support the General Mission Fund. Previously, they were able to itemize and receive a deduction annually for the full value of the $5,000 gift. Now, the value of their gift will be reduced every year by the new charitable giving floor.
Instead, they decide to contribute four-years’ worth of their intended gift into one $20,000 contribution to a Donor-Advised Fund. They receive the tax deduction right away and minimize the impact of the charitable giving floor. Then, they are able to recommend grants of $5,000 every year to CLC through their Donor Advised Fund, keeping their intended annual support steady.
Giving Is Great When It Blesses Everyone
Maya Angelou said, “When we give cheerfully and accept gratefully, everyone is blessed.”
Ultimately, the non-tax benefits of giving are the most profound and meaningful reasons why people give. CLC’s incredible community of supporters give because they care about older adults and the team members who support them, and they want to help create a world where aging is honored and celebrated.
Giving is about so much more than tax benefits, but when changes in the tax law make it easier to make your generosity go further, it’s worth paying attention!
As always, we recommend discussing your giving goals and tax questions with your tax-planner or estate planner to ensure you’re receiving the best financial advice for your individual situation.
About the Author
Stormie Foust Maley, Annual Giving Manager, is a born Midwesterner and Certified Eden Alternative Educator who believes passionately that individuals can make a difference in the lives of others. She worked for nine and a half years at Dayspring Villa Assisted Living, a neighborhood of Christian Living Communities, prior to her role as Annual Giving Manager. There she learned firsthand the joy of building a purposeful and resilient community through a person-directed care mindset.
