New year, new way to deduct charitable donations

WINSTON-SALEM, N.C. — Changes to how charitable donations are taxed are coming in 2026.

“I think that the winners are definitely going to be those that take a standard deduction,” said Jahad Zenith, chief financial officer of Ummah Tax Solutions in Winston-Salem.

Depending on tax bracket, starting Jan. 1, those who don’t itemize will be allowed to deduct charitable cash donations of up to $1,000 for single filers and up to $2,000 for those who file jointly. Itemized charitable donations will be capped at 35% and a new floor has been set regarding deductions for itemizers and corporations. 

“If your [adjusted gross income] is $100,000, 0.5% of that is $500, you have to go above the $500 in order to get any credit,” Zenith said. “You have to meet a certain number before any deductions even count.”

Reports show nearly one-third of charitable donations are made in December. It’s typically a busy time of year for nonprofits such as Goodwill to receive donations. 

“It’s not unlikely for us to get hundreds of donations a day,” said Renee Rohrer, director of marketing for Goodwill Industries of Northwest N.C.

Goodwill accepts gently used clothing, furniture, household goods and electronics, and 87 cents of every dollar received go toward the nonprofit’s mission programs.  

“When you make a donation to Goodwill, you can receive a receipt,” Rohrer said. “[It’s a] tax-deductible receipt. It also has cool reminders on the back of what we can accept and what we can’t accept, and what our most needed items are.”

Although the holiday season creates a rush, recently imposed tariffs have also led to an increase in those shopping at Goodwill. The new tax codes may move some to donate even more.

“We still see an incredible amount of donations because people are just already in the swing of things this time of year to go through stuff in their houses, whether or not they’re able to write that off on their taxes,” Rohrer said. 

With tax season around the corner, experts recommend consulting with a tax professional to make sure you get the most out of your return. Some organizations offer free estimates. 

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