More people can deduct charitable gifts.

Starting in 2026, taxpayers who do not itemize deductions may still deduct charitable contributions—up to $1,000 per person, or $2,000 for married couples. This opens the door for more donors to receive a tax benefit for charitable giving.

Itemized deductions now have a “floor.”

For those who do itemize, charitable deductions will be reduced by 0.5% of adjusted gross income (AGI). In simple terms, the first portion of charitable gifts each year may not be deductible—only giving above that threshold counts for tax purposes.

Estate tax exemptions are higher.

The federal estate and gift tax exemption has increased to $15 million per person (adjusted for inflation). While this means fewer estates will owe federal estate tax, some states have much lower limits, and charitable planning can still play an important role.

What This Means for Charitable and Planned Giving

Even with these changes, giving through a will or trust, naming a charity as a beneficiary of an IRA, or donating appreciated assets during one’s lifetime can remain an effective way to support your causes.

As always, tax laws are complex, and individual situations vary. We encourage donors to consult their tax or estate advisors to understand what these changes may mean for them. Our team is also happy to talk through general questions or charitable giving options.

William Blair, a private wealth management company and the corporate sponsor of Friends of Acadia’s gift planning office, offers excellent white papers and podcasts. Visit www.williamblair.com/thinking

Contact Lisa Horsch Clark, Vice President of Planned Giving, with questions, ideas, or information:
207-370-4926 Direct | 207-669-2152 Mobile/Text/Voice | lisahorsch@friendsofacadia.org

Important: This material is for informational purposes only and should not be considered tax, legal, or financial advice. Individuals should consult their own professional advisors regarding their specific circumstances.