Optimize Your 2025 Giving— Tax Code Changes Coming in 2026
The Stroum Jewish Community Center (SJCC) is strengthened every day by the generosity of our community. Your philanthropic support helps the J fulfill its mission of amplifying profound Jewish connections for people of all generations. These contributions allow us to balance our budget, serve families of all economic backgrounds, expand outreach across the Puget Sound, and deliver meaningful Jewish holiday and cultural arts programs for all.
Our donors support the J for many reasons and also enjoy the tax benefit of giving to nonprofit organizations (501(c)(3)s) like the SJCC. Importantly, upcoming changes to the federal tax code will alter how charitable deductions work starting in 2026. Understanding these changes now can help you make the most of your giving in 2025, and we recommend you learn more.
Key Tax Code Changes Taking Effect in 2026
- New Deduction Threshold:
Charitable contributions will only be deductible once they exceed 0.5% of adjusted gross income (AGI).
Example: A taxpayer earning $200,000 will not be able to deduct the first $1,000 in charitable donations each year. - Reduced Maximum Deduction Rate:
The maximum deduction rate for high-income taxpayers will decrease from 37% to 35%. The existing cap allowing deductions of up to 60% of AGI for cash contributions remains unchanged. - New “Above-the-Line” Deduction:
Taxpayers who take the standard deduction will now be eligible for a modest charitable deduction.
o Individuals can deduct up to $1,000 in cash contributions.
o Married couples filing jointly can deduct up to $2,000.
What You Can Do Now
If these upcoming changes may affect you, consider discussing your charitable strategy with your financial advisor. Making gifts in 2025—before the new rules take effect—could help you optimize both your impact and your tax benefits.
