Upcoming Tax Law Changes Could Affect YOUR Charitable Giving
Beginning in 2026, significant changes will impact itemized deductions for charitable contributions. These include a new 0.5% adjusted gross income (AGI) floor, meaning only donations exceeding this threshold will be deductible, and a 35% cap on the deduction value for top earners, reducing the tax benefit for those in the highest tax bracket.
Two major changes for those who itemize deductions start in 2026. They are:
- 0.5% adjusted gross income (AGI) floor: Only charitable contributions that exceed 0.5% of a taxpayer’s AGI are deductible. This applies to all taxpayers, not just the wealthiest. For instance, if your AGI is $200,000, the first $1,000 in donations is not tax-deductible.
- 35% cap on deduction value: For only those in the top 37% tax bracket, the tax benefit from all itemized deductions (not just charitable contributions) for taxpayers will be capped at a 35% tax rate. This means a top earner who donates $10,000 will receive a $3,500 tax reduction instead of the $3,700 they would have received under the current rate.
In 2025, donors can deduct the full amount of their charitable contributions, rather than only the portion exceeding 0.5% of their adjusted gross income (AGI). Donors who itemize might consider “bunching” two or more years of donations into 2025. This strategy, according to experts, would help them avoid the reduction of the cap on all itemized deductions they claim from 37% to 35%. Non-itemizers (people who take the standard deduction may delay giving until 2026. Postponing cash donations until 2026 will allow you to receive a tax benefit that is not available in 2025. Corporate donors (companies giving less than 1% of taxable income) may consider bundling donations into years where they can give above the floor to receive the tax deduction.
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WAYS TO GIVE
Since Cannonball Kids’ cancer Foundation (CKc) is recognized by the IRS as a 501(c)3 not-for-profit charitable organization EIN 46-4839642, your gift is tax-deductible to the full extent of the law. Please be aware that donations in which donors receive goods or services in return for the donation are not tax-deductible, or may be only partially deductible (example: event sponsorships, retail purchases). Please consult with your financial advisor for the tax implications of your donation.
Give Online
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Give by Check
If you prefer to donate via check, please mail to:
1555 Howell Branch Rd Suite C202
Winter Park, FL 32789
Cannonball Kids’ cancer Foundation is a 501(c) 3 tax-exempt organization, EIN: 46-4839642.
Evaluate giving methods to maximize tax advantages by exploring alternatives to direct cash donations, such as gifting appreciated non-cash assets, contributing to a donor-advised fund, donating stocks, or making a Qualified Charitable Distribution (QCD) from an IRA.
Donor-advised funds
To donate via Donor Advised Fund, please initiate the request directly with your fundholder. Please be sure to authorize your fund manager to release your name so we may thank and keep you updated on the impact of your generosity!
CKc has moved – please confirm that they have the correct mailing address on file:
Cannonball Kids’ cancer Foundation
1555 Howell Branch Road Suite C202
Winter Park, FL 32789
CKc’s EIN is: 46-4839642
For help with your donation, to request a copy of CKc’s IRS determination letter, or initiate an EFT payment, please contact meghan.hedrick@cannonballkidscancer.org.
Qualified Charitable distributions
For those aged 70½ or older, a total of up to $108,000 can be transferred directly from traditional or Roth IRAs to CKc free from federal income tax each year. The direct gift helps keep the MAGI (modified adjusted gross income) of the gifter lower, which can help reduce IRMAA (medicare) surcharges. There may also be state income tax savings. Amounts given in this way count toward the required IRA minimum withdrawal amounts for the year of the gift. To make a gift in this way, it is important to not withdraw funds prior to a gift, but have the gift amount distributed directly from an IRA to CKc.
Stocks
Gifts of stock and mutual funds can be designated to support our mission. Gifting highly appreciated stock is an impactful way to give and avoid paying taxes on the gains. Contact Dana Nichols, dana.nichols@cannonballkidscancer.org for additional information to provide your broker.
Download the Stock & Mutual Fund Form
