Looking ahead

Planning ahead can help align your generosity with your long-term goals—especially in light of new legislative changes. Keep the following in mind as you plan: 

• A new deduction for non-itemizers. Starting in 2026, you can deduct $1,000 (single filers) or $2,000 (joint filers) for cash gifts to qualified public charities like CWRU. If you don’t itemize, this is a new opportunity to save. 
• A new 65+ deduction. Starting this year, if you are age 65 or older, you can take a $6,000 deduction, whether you itemize or not. The deduction phases out once your modified adjusted gross income exceeds $75,000 (single filers) or $150,000 (joint filers). This may free up additional money for meeting charitable goals.
• A new “giving floor” for itemizers. Starting in 2026, itemizers must give at least 0.5% of their adjusted gross income before claiming a deduction. You may want to give in 2025—or even give two more years’ worth of gifts this year (a strategy called “bunching” where donors make larger gifts less frequently to secure tax advantages.
• A new cap on deductions for top earners. If you are in the 37% tax bracket and you itemize, starting in 2026, your deductions will be treated as though you were in the 35% bracket. This lessens your tax savings by 2 cents for each dollar donated. If this will affect you, you may want to consider making any larger gifts now instead of waiting.