What the New Tax Law Means for Your Giving

Changes to the tax code beginning January 1, 2026, could affect how—and when—you choose to give to University of Massachusetts Foundation 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). So even smaller donations can make an impact. Note: Gifts to donor advised funds are excluded.
2. New floor for itemizers
   You will need to give at least 0.5% of your adjusted gross income (AGI) to claim a charitable deduction. Consider maximizing your giving in 2025 before the new rule takes effect.
3. New limit for top earners
   Currently, top earners get a 37-cent tax benefit for every $1 deducted. Starting in 2026, that drops to 35 cents. If you are in the top tax bracket, consider giving more this year to avoid losing tax benefits next year.

What stays:

1. Income tax brackets
   The new law permanently extends the current tax rates.
2. Standard deduction
   For 2025, it will be $15,750 for single filers and $31,500 for married couples filing jointly. If you don’t itemize, you may still benefit if you give appreciated stock, real estate or, if you are 70½ or older, from your IRA.
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 impact.
4. Estate and gift tax exemption
   It will increase to $15 million per individual and $30 million per married couple filing jointly. Your estate is likely under this amount, so focus on current giving to receive tax benefits.

Want to make the most of a gift to the University of Massachusetts Boston in 2025? Contact Anthony J. Barbuto, Esq. at 617.388.4558 or Anthony.Barbuto@umb.edu. We’d be happy to discuss the best ways you can create a legacy.