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Charitable Deduction Changes

July 3, 2026By

New 2026 federal tax rules change how charitable deductions work for taxpayers who take the standard deduction and for those who itemize. These updates affect how much of your charitable donations can be deducted on tax returns.

Most people who support our mission do so for very personal reasons. You give because you believe survivors and their children deserve safety, healing, and stability after abuse. Recent tax law changes may offer new ways for your charitable giving to benefit both our mission and your finances.

New Charitable Deduction Available

Beginning in 2026, many taxpayers who claim the standard deduction may also qualify for an additional charitable deduction for eligible monetary donations. This benefit is available in addition to the standard deduction, meaning you may receive a federal tax benefit for charitable giving without needing to itemize.

The additional charitable deduction is up to $1,000 for individuals and up to $2,000 for married couples filing jointly. This deduction applies to monetary gifts made in cash or by check, debit or credit card, and through online donations to qualified charitable organizations.

For many of our supporters, this change applies to your everyday generosity — monthly gifts, online donations, or year-end contributions.

Changes to Itemized Charitable Deductions

If you itemize your deductions, only the portion of eligible charitable gifts exceeding 0.5% of your Adjusted Gross Income (AGI) can be deducted.

For example, if your AGI is $100,000, then the first $500 of your charitable donations will not be eligible for an itemized deduction; however, the amount of your donations in excess of $500 would qualify.

For taxpayers in the highest federal income tax bracket, the tax benefit of itemized charitable deductions has been capped at 35% of the value of each deductible dollar donated.

Should I change how I give?

Many donors are wondering whether they should itemize in 2026 or continue taking the standard deduction. Others are wondering whether their monthly donations, online gifts, or year-end contributions still qualify for a charitable tax deduction.

A tax advisor can help you decide what approach makes the most sense for your situation while continuing to support the causes you care about.

FAQS

Can I still receive a tax benefit if I don't itemize?

Yes. New tax rules allow many taxpayers who claim the standard deduction to also claim a charitable deduction for eligible monetary gifts made to qualified charitable organizations. Individuals may deduct up to $1,000, and married couples filing jointly may deduct up to $2,000 without itemizing their deductions.

Do my monthly online donations to GreenHouse17 qualify?

Yes. GreenHouse17 is a qualified charitable organization. Eligible monetary donations, including the calendar year total of your recurring monthly gifts made online, may qualify for the charitable deduction available to taxpayers who claim the standard deduction, subject to the annual limits. If you itemize your deductions, eligible charitable gifts may also qualify, subject to applicable tax rules.

Does my year-end gift to GreenHouse17 qualify?

Yes. GreenHouse17 is a qualified charitable organization. Eligible monetary donations received by December 31 may qualify for the charitable deduction available to taxpayers who claim the standard deduction, subject to the annual limits. If you itemize your deductions, eligible charitable gifts may also qualify, subject to applicable tax rules.

Should I still keep my gift acknowledgment letters on file?

Yes. You shoud still retain documentation of your charitable gifts for tax purposes. We will provide you with a timely gift acknowlegment letter that meets the criteria for your tax documentation. These acknowledgment letters are sent in the manner your donation was received. Mailed gifts will be acknowledged by a mailed letter. Online gifts will be acknowledged by an emailed letter. If you make recurring gifts, for example monthly, we will also mail documentation of your total annual giving in January, following the close of the calendar year.

Donate now!

Follow the link above to make a secure, online donation today.

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Shape of Kentucky in blue with an orange heart in the central KY region.Blog

Endow Kentucky Tax Credit Opens July 1

June 4, 2025By

The Endow Kentucky Tax Credit can support survivors and offers a great tax incentive.

Endow Kentucky Tax Credit season is quickly approaching! Tax credits totaling $1 million will become available on July 1. But these tax credits are often gone in the first week, so now is the time to start planning.

Individuals and businesses can receive a credit on Kentucky state taxes of up to 20% of a gift to our endowed fund held at Blue Grass Community Foundation. The credit is in addition to your federal and state charitable tax deduction.

Answers to frequently asked questions are included below:

Is there a minimum or maximum gift amount for the tax credit?

There is no minimum gift size required to receive the tax credit.The maximum gift amount is $50,000.

What if I'm not itemizing my charitable donations this year?

You can likely still take advantage of the Endow Kentucky Tax Credit. This is a state tax credit, not a deduction. A tax credit reduces your Kentucky state tax liability dollar-for-dollar, regardless of your ability to itemize.

Are donations of non-cash assets eligible for the tax credit?

Yes, these non-cash assets could be eligible:

  • stocks 
  • mutual funds
  • tangible property
  • donations of life insurance
  • donors 70 ½ and older can make a qualified charitable distribution from qualifying IRAs (QCDs can be made to any endowed funds other than donor advised funds).  

How do I apply for the tax credit?

Here is a link to this year’s Application for Preliminary Authorization.

How do I make sure my application is received on July 1?

With your permission, Blue Grass Community Foundation can submit the application on your behalf on July 1. You may also email or fax the completed form to the Kentucky Department of Revenue on July 1. Mailing your application is not advised.

How can I learn more about your endowment? 

We look forward to sharing more about how our permanent endowment supports the mission in perpetuity–through times of crisis and opportunity. Please reach out to Corissa Phillips, our Certified Fund Raising Executive on staff. She can be reached by calling 859-519-1904 or you can send her a note here.

 

This post was written with information provided by the Blue Grass Community Foundation. We always encourage you to consult your accountant or professional advisor to learn about the personal impact of receiving your tax credit.

Follow this link for more information from the Blue Grass Community Foundation

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