In 2026, new federal tax laws take effect that will change how charitable donations are deducted on your 2026 tax returns. Depending on how you plan to file in 2025 and 2026, you may find you can maximize your donation deductions by donating before January 1. As always, please consult with your tax advisor to determine the best giving strategy for your personal situation.
What’s changing in 2026
Donors who itemize their deductions:
Starting in 2026, only total charitable gifts that exceed 0.5% of your adjusted gross income (AGI) will be tax-deductible. For a household with an income of $100,000 in 2026, this means that only donations above $500 (0.5% of $100,000) would qualify for a deduction.
In addition, high-income taxpayers in the top tax bracket will see the value of their charitable deductions reduced from 37 cents to 35 cents per dollar donated.
Example:
Suppose your household income is $100,000. In 2026, you donate:
• $1,750 to CAF
• $75 to PTSA
• $250 to Carlmont Music Boosters
Your total charitable contributions for the year would be:
$1,750 + $75 + $250 = $2,075Under the new rules, the first $500 of charitable giving isn’t deductible. So your eligible deduction would be:
$2,075 – $500 = $1,575This $1,575 represents the amount you could deduct if you itemize.
Donors who take the standard deduction:
Starting in 2026, taxpayers who do not itemize will be allowed to deduct up to $1,000 (for single filers) or $2,000 (for married couples filing jointly) for cash gifts made directly to charitable organizations like ours.
Why 2025 may be the better year for you to give
- Better tax benefits when itemizing: Any donations made in the tax year ending December 31, 2025 follow current tax law and are not subject to the 0.5% AGI threshold. If you plan to give to CAF this school year and you itemize your deductions, accelerating that contribution into 2025 may provide greater tax advantage.
- Leverage a donor advised fund (DAF): Another option is opening or “pre-funding” a Donor Advised Fund (DAF) with several years of giving to capture the full deduction this year, and using that fund to allocate your giving over the coming years. If you don’t already have a DAF, it’s easier than ever to open one. There are even apps that can help you create an account in minutes.
- Avoid capital gains on your gift: If you hold appreciated stock, mutual funds, or other securities, you may prefer a direct transfer of those assets (rather than selling and donating the proceeds). This allows you to avoid capital gains tax and may enhance the value of your gift. Donating securities might become a better way to meet your giving goals if that option is available to you. You can contact us at securities@carlmontacademicfoundation.org for account information.
Why giving sooner helps Carlmont
Whether the tax advantages for your household fall at the end of 2025 or early 2026, earlier gifts to CAF allow you to support Carlmont more effectively. The sooner funds are received, the better Principal Buckland-Murray can plan staffing, secure essential teaching professionals, and shape next year’s course offerings.