What the 2026 Tax Changes Mean for Charitable Donations
You give in more than one place. The parish gets a check every month, the Catholic high school gets a bigger one every spring and a friend's fundraiser for the diocesan food pantry gets whatever you can spare in November. You have heard something changed in the tax law for 2026, and you are not sure whether it helps you, complicates your filing or simply does not apply to how you give.
Here is what most people do not know yet. For the first time since the pandemic-era rules expired, the federal government has brought back a benefit for people who do not itemize and paired that change with a new floor affecting how itemized giving is counted. Both took effect this year, and neither one has much to do with how generous you are. They have to do with paperwork most Catholics were never taught to think about.
What Is Different if You Don't Itemize?
Most Orange County households take the standard deduction, which for 2026 is $16,100 for a single filer and $32,200 for a married couple filing jointly, according to the IRS. Until this year, if you took the standard deduction, your charitable gifts did not reduce your taxable income at all, no matter how much you gave.
Starting with tax year 2026, that changes. Non-itemizers can now deduct up to $1,000 in cash gifts if filing single, or $2,000 if married filing jointly, according to the IRS. This applies to cash gifts to qualified charities such as your parish, a Catholic school or a diocesan appeal. It does not apply to gifts to a donor advised fund or to a private foundation, and it does not apply to non-cash gifts like clothing or furniture. A household that gives mostly through a fund with The Orange Catholic Foundation (OCF) should not assume this new deduction covers that giving.
Unlike the temporary version Congress allowed during the pandemic, the change is written into the law permanently. Therefore, it is worth building into how you plan your giving each year rather than treating it as a one-time quirk.
What Is Different if You Do Itemize?
If your mortgage interest, property taxes and charitable gifts together exceed the standard deduction, itemizing generally still produces the better result, and the deduction rules that have applied for years continue to apply. Cash gifts to a public charity can offset up to 60 percent of your adjusted gross income. Gifts of long-term appreciated property, such as stock you have held more than a year, can offset up to 30 percent, with any excess carried forward for as long as five years.
One new wrinkle for 2026 affects itemizers specifically: a floor under the deduction equal to 0.5 percent of adjusted gross income. In plain terms, a small slice of your giving at the bottom no longer counts toward your itemized total. For most families who give consistently throughout the year, this floor is a minor adjustment rather than a real obstacle. It matters more to someone who gives only once, in a small amount, and nowhere else. Your accountant can calculate the exact effect once your income and total giving for the year are final.
"None of This Sounds Like It Applies to Me"
If your giving is modest and consistent and you have never itemized, the honest answer is that these changes may matter less to you than the headlines suggest. The new non-itemizer deduction is a real benefit, but it is capped well below what many families give in a year across a parish, a school and a handful of other causes. It is not a reason to change how you give. It is a reason to keep better track of what you already give, so that whichever path applies to your return, you have the documentation to support it. Bring your accountant into this conversation early. We work alongside CPAs and financial advisors across Orange County and we do not replace them.
Why Any of This Matters Beyond the Filing
A family that gives to a parish, a Catholic school and a diocesan ministry in the same year is not managing three separate transactions. They are supporting the same community from three directions: the place they worship, the place their children or grandchildren learn and the people the Diocese serves who may never set foot in either building. Understanding the tax rules well enough to give with confidence, rather than guesswork, tends to free families to give a little more consistently rather than a little less.
None of the three gifts is more legitimate than the others in the eyes of the IRS. A check to the parish building fund, tuition assistance to the Catholic high school's scholarship program and a cash gift to the diocesan food pantry drive are each treated the same way under the rules described above, provided each recipient is a qualified organization. Knowing that in advance saves you from sorting your own giving into a hierarchy that the tax code does not recognize.
Talk to the Next Generation About This Early
If you have adult children who are just beginning to give charitably on their own, this is a good year to walk them through what changed. Most people your children's age have never itemized and have no idea a deduction now exists for them at all.
Your Next Step
If your giving spans more than one cause and you want a clearer picture of how the 2026 rules apply to your household, a member of our team can help you organize the conversation before you sit down with your accountant. Schedule a meeting with The Orange Catholic Foundation, or review the full range of ways to give help Orange County Catholic families use each year.
Frequently Asked Questions
Are charitable donations tax deductible if I don't itemize in 2026?
Yes, within limits. Cash gifts to a qualified charity such as a parish or Catholic school may be deducted up to $1,000 for a single filer or $2,000 for a married couple filing jointly, even if you take the standard deduction. Gifts to a donor advised fund or a private foundation do not qualify for this specific deduction, so confirm which of your gifts count with your accountant.
Is there a limit on how much of my income I can deduct for charitable gifts?
For itemizers, cash gifts to public charities can offset up to 60 percent of adjusted gross income in a given year, and gifts of long-term appreciated property can offset up to 30 percent, with a five-year carryforward for any amount above the limit. These limits have applied for several years and were not changed by the 2026 rules.
What is the new 0.5 percent floor, and does it affect me?
Beginning with tax year 2026, itemizers cannot deduct the portion of their charitable giving that falls below 0.5 percent of their adjusted gross income. For most consistent givers, this reduces the deductible total only slightly. Your accountant can calculate the exact effect once your full income and giving for the year are known.
Do gifts to a donor advised fund count toward the new non-itemizer deduction?
No. The new deduction for non-itemizers applies to direct cash gifts to qualified charities such as a parish or school. Gifts to a donor advised fund, a supporting organization or a private foundation are excluded from this particular benefit, even though they may still be deductible for itemizers under the existing rules.
This information is intended to be general in nature and is not offering professional tax, legal or accounting advice. Please discuss your philanthropic giving with your accountant or other professional advisors. The Orange Catholic Foundation is a 501(c)(3) charitable corporation, Tax ID 33-0934571.
