APF’s Guide to Giving

Navigating changing tax law and deciphering IRS code can be overwhelming, especially if you don’t have a financial advisor to lean on. This guide to giving breaks down key things to know as you plan where to invest your money and how to maximize tax benefits in 2025 and beyond. 

2025
Some tax changes have already gone into effect for the 2025 tax year, specifically related to the standard deduction amounts. For this year, you will still need to itemize your deductions in order to deduct charitable contributions. The standard deduction for the 2025 tax year will be $15,750 for single filers and $31,500 for married couples. 

Individuals who are 70 ½ or older can also transfer up to $108,000 per year from individual retirement accounts (IRA) directly to charitable organizations without having to pay tax on the distribution. Your gift can satisfy the required minimum distribution for the year. 

2026
The 2026 tax year is where the big changes go into effect. We’re going to dig into two of these changes and break down how they will impact you and your giving. 

Non-Itemized Deductions
Normally, only individuals who itemize their deductions can benefit from a tax break for their giving. Starting in 2026, even if you don’t itemize, you’ll be able to deduct up to $1,000 as a single filer or $2,000 if you file jointly with a spouse. 

The TLDR: If you give $500 to APF, you can subtract $500 from your taxable income, even if you don’t itemize! 

Itemized Deductions
For individuals who itemize, there are some larger changes to how deductions work. Beginning in 2026, if you itemize, you can’t deduct every dollar of giving. Now, only the portion of your contributions that are more than 0.5% of your income can be deducted. 

For example:

• You earn $100,000
• 0.5% of that is $500
• You donate $1,000 total, but can only deduct $500 

For businesses, the limit is on contributions over 1% of their income. 

What Now?
These changes provide opportunities and challenges, but you can still get tax benefits for supporting organizations you’re passionate about (like APF!). It’s just a matter of what works best for you and your financial plan. With the option to deduct a smaller amount without itemizing, more people can take advantage of things like monthly giving (sign up here!) or a few smaller gifts to different organizations and still reap the tax benefit. For those who itemize and typically give larger amounts, there are ways to maximize tax benefits even with the new floors for deductions, like establishing a Donor Advised Fund (DAF). 

Giving and taxes can be scary – but there are many resources available to help. Please be sure to consult with your tax advisor to confirm deductions based on your individual financial planning, and we hope you’ll keep APF in mind as you plan your giving!