What New Tax Laws Mean for Your Giving Plans | Illinois Mathematics and Science Academy
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What New Tax Laws Mean for Your Giving Plans

Changes to the tax code beginning January 1, 2026 could affect how and when you choose to give to the IMSA Fund and other nonprofits.

What’s new:
  1. Tax benefit for non-itemizers
     Even if you don’t itemize, you can deduct up to $1,000 (single filers) or $2,000 (married couples). That means even smaller gifts to IMSA can provide a tax benefit while making an impact on our students. Note: Gifts to donor-advised funds are excluded.
  2. New floor for itemizers
    Beginning in 2026, you will need to give at least 0.5% of your adjusted gross income (AGI) to claim a charitable deduction. Consider maximizing your support for IMSA in 2025 before this new rule takes effect.
  3. New limit for top earners
    Currently, top earners receive a 37-cent tax benefit for every $1 deducted. Starting in 2026, that benefit will drop to 35 cents. If you are in the top tax bracket, consider giving more this year to IMSA to avoid losing tax advantages next year.
What stays:
  1. Income tax brackets
    The new law permanently extends the current tax rates. For example, if you are in the 24% tax bracket, a $1,000 gift to IMSA could reduce your taxable income by $250. The exact savings will depend on your personal tax situation, but knowing brackets will stay the same helps you plan for future giving.
  2. Standard deduction For 2025, it will be $15,750 for single filers and $31,500 for married couples filing jointly. Even if you don’t itemize, you may still benefit by giving appreciated stock, real estate, or—if you are 70½ or older—making a gift directly from your IRA to IMSA in the form of a QCD (Qualified Charitable Distribution).
  3. Deduction limit for cash gifts
    You can still deduct cash gifts of up to 60% of your AGI. Consider combining your cash and non-cash assets (often called blended giving) to maximize your tax benefits and your impact.
  4. Estate and gift tax exemption
    It will increase to $15 million per individual and $30 million per married couple filing jointly. Since most estates fall below this threshold, the focus should be on current giving to IMSA in order to receive tax benefits while making a difference today.

For specific tax guidance, we always recommend consulting your financial advisor or tax professional. And if you’re interested in learning how your philanthropy can make a long-term difference at IMSA, our team at the IMSA Fund is here to help. If you need help drafting appropriate language to include the IMSA Fund in your estate plan, we can connect you with a free consultation to assist. Reach out to Cesar Patino at (630)-907-5051 or email at cpatino@imsa.edu to explore the giving strategies that work best for you.