As new tax laws begin to take effect in 2026, the landscape of charitable giving is beginning to shift, creating an opportunity to reflect and think more intentionally about how you give. While some strategies may evolve, the purpose of giving should remain the same; making a meaningful difference in the world.
With that in mind, let’s take a look at what’s changing in 2026. Some updates to the tax code may influence how donations are made:
- A new deduction for non-itemizers: Beginning in 2026, individuals who take the standard deduction can claim up to $1,000 (or $2,000 for couples) for charitable gifts—but only for direct contributions to nonprofits, not donor-advised funds.
- A new giving threshold: Donors who itemize will only be able to deduct contributions that exceed 0.5% of their income, meaning smaller annual gifts may not receive the same tax benefit as before.
- Reduced value of deductions for some donors: For those in the highest tax bracket, the value of charitable deductions will be slightly reduced, lowering the overall tax incentive for giving.
What this means for donor-advised funds
Donor-advised funds are not going away. In fact, for many donors, they may remain an important part of long-term planning. What may change is how they’re used; some donors will have to begin thinking more strategically about:
- When to contribute to a DAF versus making direct gifts
- How to time larger contributions, especially in years where tax benefits are more favorable
- Balancing flexibility and immediacy, particularly as direct giving may offer new tax advantages for some households
Remember to focus on impact, ideally together
Whether your giving is structured through a donor-advised fund, direct contributions, or a combination of both, what matters most is the impact you want to create. At IMSA, we care about support rooted in purpose for our students, for innovation, and for the future.
As you think about giving in the years ahead, we’re here to help. Perhaps discussing different giving approaches can help align your goals with your impact to make a lasting difference.
In many cases, donor-advised funds continue to offer something incredibly valuable: the ability to plan ahead, stay consistent in giving, and remain thoughtful about impact over time.
If you’re curious about what options are available to you, we encourage you to speak with your financial advisors about ways to align your goals. Sometimes a simple conversation is all it takes to have clarity and to shape a plan that reflects your goals and your vision for impact.