The 2026 charitable giving tax changes are significant — and they’ve already raised a lot of questions.
This FAQ is designed to give clear, practical answers for:
- Employees and donors
- HR and CSR leaders
- Finance teams and CFOs
- Nonprofits and fundraising leaders
If you’re looking for a quick, trustworthy reference you can share internally, start here.
General Questions
What changed with charitable giving in 2026?
Starting January 1, 2026, two major tax changes took effect:
- Individuals who take the standard deduction can now deduct charitable donations above the line (up to $1,000 for individuals or $2,000 for married couples).
- Corporations now face a 1% floor before charitable donations become deductible, while the existing 10% cap remains in place.
You can read a plain-English explanation in our guide to the Universal Charitable Deduction in 2026.
Can I use this deduction for donations I made in 2025?
No.
The new above-the-line charitable deduction only applies to donations made in calendar year 2026 and beyond.
Donations made in 2025 follow the old rules and cannot be retroactively applied.
Do I need to itemize my taxes to use this new deduction?
No.
That’s the key change. You can take:
- The standard deduction, and
- The new charitable deduction, at the same time
This is why the change applies to roughly 90% of U.S. households.
Questions for Employees and Donors
How much can I deduct for charitable giving in 2026?
- $1,000 if you file as an individual
- $2,000 if you’re married filing jointly
This is a hard cap for this specific deduction, even if you donate more.
For examples and calculations, see our tax savings calculator:
See How Much You’ll Save on Taxes by Giving to Charity in 2026
How do I calculate my tax savings?
The formula is simple:
Deductible donation × your marginal tax rate = tax savings
For example:
- $1,000 × 22% = $220 saved
- $2,000 × 24% = $480 saved
We break this down step by step in our donor guide:
What the New 2026 Charitable Tax Incentives Mean for You as a Donor
What types of donations qualify?
Qualifying donations include:
- Cash donations (credit card, ACH, payroll giving)
- Gifts to IRS-qualified nonprofits
- Donations made in 2026 or later
Not eligible:
- Donor-advised fund contributions
- Non-cash donations (stock, clothing, furniture)
- Company matching funds (only your personal donation counts)
Using a workplace giving tool like the Percent Pledge Giving Platform ensures nonprofits are verified automatically.
Do I need receipts to claim the deduction?
You don’t need to submit receipts with your tax return, but you must have documentation if you’re audited.
Percent Pledge automatically:
- Generates IRS-compliant donation receipts
- Stores them in your dashboard
- Provides an annual giving summary for tax time
Questions for Employers and Finance Teams
Does the new 1% corporate giving floor apply to all companies?
The 1% floor applies to C-corporations.
Pass-through entities (LLCs taxed as partnerships or S-corps) generally pass deductions through to owners and are treated differently.
Our CFO-focused breakdown explains this in detail:
What Employers Need to Know About Corporate Charitable Giving in 2026
Why wouldn’t a company just give between 1% and 10% every year?
Because the new rules create a strategic decision:
- Giving below 1% → generally nondeductible, culture- and brand-driven
- Giving above 1% → deductible (up to 10%), tax-aware strategy
Some companies will choose to give below the floor intentionally. Others will structure giving to exceed it. The key is being intentional.
See our CFO planning guide:
CFO Decision Framework for Corporate Giving in 2026
Do matching gifts count toward the corporate 1% floor?
Yes — company matching dollars count toward corporate charitable contributions.
Employee donations do not count toward the employer’s floor, but matching does.
That’s why many companies are updating their matching policies in 2026.
How to Update Matching Gift Programs for 2026
Can corporate charitable contributions be carried forward?
- Contributions above the 10% cap can still be carried forward for up to five years.
- Contributions disallowed solely because of the 1% floor generally cannot be carried forward unless total giving also exceeded the 10% ceiling.
This nuance matters most to Finance and is covered in our finance-alignment guide:
How to Talk About the 2026 Charitable Tax Changes With Your Finance Team
Questions for Nonprofits
How should nonprofits talk to donors about the new rules?
Nonprofits should:
- Emphasize the new $1,000 / $2,000 deduction thresholds
- Explain that donors no longer need to itemize
- Encourage recurring gifts to help donors hit the threshold
- Coordinate with workplace giving partners when possible
We cover this in detail here:
2026 Charitable Giving Tax Rules: What Nonprofits Should Know
Will these changes affect workplace giving?
Yes. Significantly.
Employees now have a clear financial incentive to give, and employers are restructuring matching and campaign strategies in response.
For a full breakdown, see:
2026 Charitable Giving Tax Rules and Workplace Giving
Final Thoughts
The 2026 charitable giving tax changes are meaningful — but only if people understand them.
This FAQ is designed to give you a clear starting point, whether you’re:
- Deciding how much to give
- Explaining the change to employees
- Updating a matching program
- Or planning corporate giving with Finance
If you want help implementing these changes — from employee education to matching and reporting — Percent Pledge can help. Pick a time to meet with our social impact team.
