Tax Law Changes for 2026: What They Mean for Your Giving

New tax rules that took effect this year may influence how you choose to give to University of Massachusetts Foundation and other nonprofits. Here’s what you need to know:

Q: What’s the biggest change this year?
A: You can deduct up to $1,000 (single filers) or $2,000 (married couples) in cash charitable donations even if you don’t itemize. So even smaller donations can benefit you while making an impact at UMass Boston. Note: Gifts to donor advised funds are excluded.

Q: So I can claim this on top of the standard deduction?
A: Yes! For 2026, that deduction is $16,100 for single filers and $32,200 for married couples filing jointly.

If you are 65 or older, you may claim a standard deduction that’s even higher: $2,050 if you are a single filer and head of a household, $1,650 per qualifying individual if you are married filing jointly or separately, or a qualifying widow(er).

Q: That sounds pretty good. Any other benefits if I’m 65 or older?
A: Through the 2028 tax year, you can claim yet another deduction—up to $6,000 for an individual or $12,000 if married and both spouses qualify. Note that this deduction phases out for taxpayers with higher incomes, so discuss this with your tax professional or accountant.

Q: Based on all these benefits, how should I give this year?
A: Even if you don’t itemize, you may still benefit if you give appreciated stock or real estate by eliminating capital gains tax on the growth. If you are 70½ or older, you can make a gift directly from your IRA to UMass Boston. You pay no tax on the distribution, and if you are required to take minimum distributions, it can satisfy all or part of that obligation.

Q: What if I do choose to itemize?
A: Keep these portions of the new tax law in mind:

1. Deduction limit for cash gifts
   You can still deduct cash gifts of up to 60% of your adjusted gross income (AGI). Consider combining your cash and non-cash assets, often called blended giving, to maximize your tax benefits and impact.
2. New floor for itemizers
   You will need to give at least 0.5% of your AGI to claim a charitable deduction.
3. New limit for top earners
   Top earners (those in the 37% tax bracket) now get only a 35-cent tax benefit for every $1 deducted.

Begin Your Legacy

No matter how you choose to give, we’re here to help you maximize the impact of your generosity to the University of Massachusetts Boston. Contact Anthony J. Barbuto, Esq., at 617.388.4558 or Anthony.Barbuto@umb.edu to help you make the most of giving and create a legacy.