Get Ready: New Rules on Tax Breaks for Charitable Giving
Your generosity helps make McMurry stronger—and we want to help you make the most of your giving. Here’s some timely information about new tax provisions that may influence charitable deductions starting in 2026.
These upcoming changes may affect how you choose to make an impact through McMurry, supporting our students, faculty, and programs that shape tomorrow’s leaders.
New federal tax provisions taking effect in 2026 will change how charitable deductions work, creating new opportunities for some donors and limits for others.
If you give regularly or are considering a larger gift soon, this is a good time to review your plans with your financial or tax advisor.
Here’s what to know:
New Deduction for Non-Itemizers
Beginning in 2026, taxpayers who do not itemize deductions can deduct up to $2,000 (married filing jointly) or $1,000 (single) in charitable cash gifts each year.
- Gifts must be made in cash to qualified charities (not donor-advised funds or supporting organizations).
- Learn more about qualified charities: Key Tax Considerations for 2025 and Beyond.
Reduced Benefits for Itemized Donors
Beginning in 2026, individuals who itemize deductions will lose a portion of their deduction equal to 0.5% of their adjusted gross income (AGI).
- Example: A couple with $225,000 AGI would lose $1,125 of their charitable deduction.
- Details on itemized deductions: Tax Changes Impacting Your Charitable Giving Deductions Starting in 2026
Limits for Top-Bracket Taxpayers
Beginning in 2026, the highest-income filers (currently above approximately $750,000 joint) will only receive the value of itemized deductions at a 35% rate, rather than the top 37% rate.
Planning Strategies
Since every financial situation is unique, we encourage you to consult your tax or financial advisor soon to decide whether giving in 2025 or 2026 best aligns with your goals.
- Some donors may wish to make gifts in 2025 to take advantage of the current deduction rules before the new limits take effect in 2026.
- Others might consider qualified charitable distributions (QCDs) from IRAs, which are not affected by the new rules.
- Learn more: Does the One Big Beautiful Bill Act Change Your Charitable Giving Plan?
Quick Reference
Key Effective Date: January 1, 2026
Who Is Affected: All U.S. taxpayers who give to charity
Consider Now: Whether to accelerate 2025 giving or adjust future plans
McMurry University does not provide legal or tax advice. We encourage donors to consult their own tax or financial advisor to determine how these changes may affect their individual circumstances.
To explore how these new provisions may influence your giving plans, visit mcmgift.org or contact our Office of Planned Giving at 325-793-4980.
Your continued generosity strengthens McMurry’s mission, and we are grateful for your thoughtful planning as these new rules take effect.