No money, no mission. Donations to charity are generally highest from Thanksgiving through the end of the year, and most nonprofit organizations rely on those gifts to fund operations for the coming year. The last three days of December see a surge in donations, and today is the day for giving and getting a tax deduction.
Here is what you need to know:
- Itemizing is Key: Tax deductions generally only benefit those who itemize deductions on their tax returns, not those who take the standard deduction.
- Qualified Charities: Ensure you donate to a registered 501(c)(3) organization.
- Timing: Contributions must be made by December 31st before 11:59 pm online for the current tax year or make sure your donation is postmarked by December 31.
Changes are coming in 2026:
- New limit on charitable deduction value: Given the new limit on charitable deduction value in 2026, if you’re in the highest tax bracket and itemize deductions when filing income taxes, your donations will still count in full, but your tax break will be a bit smaller.
- Give early: Front-load large future gifts to year-end 2025 to lock in the full 37% deduction value before the cap takes effect. Be mindful of adjusted gross income (AGI) rules, as any unused deduction amount rolled over to 2026 is subject to the 35% cap.
- Higher deduction floor for itemizers: Also starting in 2026, itemized charitable deductions will only apply if your total donations exceed 0.5% of your AGI. So smaller donations may no longer reduce your tax bill unless they clear this new threshold.
There are many worthy nonprofits in the Chattahoochee Valley, as long as they are a recognized 501(c)(3), let your heart be your guide for your financial support.
