What Donors Should Know About Giving in 2026 and Beyond
Eve Baughman • January 20, 2026
Recent changes to federal tax law bring more certainty to long-term planning. That is good news if you are thinking about charitable giving in the years ahead.
The One Big Beautiful Bill Act, signed into law in July 2025, made several tax provisions permanent and introduced new rules that may affect how and when you give. Some changes create new opportunities. Others may require a different approach, depending on your income and strategy.
Understanding the basics can help you plan with confidence and make the most of your generosity.
“What I’m telling clients is that the rules are clearer now, but strategy matters more. The One Big Beautiful Bill gives people the ability to plan ahead, coordinate their giving with their overall financial picture, and be more intentional about how and when they support the causes they care about,” said Jody Giles, Senior Vice President, Director of Wealth Advisory Group, CFP®, German American Bank, and member of the Community Foundation Alliance Board of Directors. “With new thresholds and caps, timing and gift type really count, and the Community Foundation can help donors understand how those details fit into their plans.”
More Stability for Long-Term Planning
Several provisions that were set to expire at the end of 2025 are now permanent. This creates clarity, especially for donors considering larger gifts or legacy plans.
Here is what that means for you:
- The estate and gift tax exemption increases to $15 million per person, or $30 million for married couples, beginning in 2026.
- The standard deduction rises to $15,750 for single filers and $31,500 for married couples filing jointly.
- The top income tax rate remains at 37%.
This stability makes it easier to plan and align your giving with your long-term goals.
New Rules That May Affect How You Give
Starting in 2026, several new provisions take effect. Depending on your situation, these may influence your strategy.
If you do not itemize deductions
You may now deduct charitable gifts up to $1,000 (single filers) or $2,000 (married couples), if the gift goes directly to a public charity like the Community Foundation. This creates a new incentive for many donors who take the standard deduction.
If you are a high-income donor who itemizes
Charitable deductions will be capped at 35% of income for those in the top tax bracket. On larger gifts, this could reduce tax savings. Timing may matter more than ever.
A new minimum giving threshold for itemizers
To claim a deduction, itemizers must now give more than 0.5% of adjusted gross income. If your annual giving falls below that level, combining multiple years of gifts into one year may make sense.
Cash gift deduction limits remain high
The 60% of adjusted gross income (AGI) limit for cash gifts to public charities is now permanent. That is positive, but non-cash gifts may still offer additional tax or planning advantages depending on your goals.
Additional flexibility for donors age 65 and older
If you are 65 or older, you may qualify for a $6,000 deduction whether you itemize or not, subject to income limits. This may free up resources for charitable priorities.
What You Can Do Now
These changes do not affect why you give. They may affect when and how you give.
A few next steps to consider:
- If your annual giving will not meet the new deduction threshold, consider combining multiple years of gifts.
- If you take the standard deduction, be sure to take advantage of the new charitable deduction starting next year.
- Talk with your financial and legal advisors. And talk with us.
We are here to help you think through options, model different scenarios, and work alongside your advisors. Our role is to make charitable giving simpler, more effective, and aligned with what matters most to you.
Missed January's Spotlight Newsletter?
The Community Foundation Alliance is proud to announce that applications are now open for its Community Scholarship Program, offering hundreds of opportunities for students across Southwest Indiana and in select areas of Illinois and Kentucky. These scholarships, made possible by generous local donors, provide financial support for students pursuing college, university, technical programs, or other post-secondary education paths. “Our scholarships reflect the belief that investing in students is investing in the future of our communities,” said Melinda Waldroup, Chief Program Officer of the Community Foundation Alliance. “We want every eligible student in Southwest Indiana and select areas of Illinois and Kentucky to have access to these opportunities and feel confident applying.” Scholarship Program Highlights Wide Range of Awards: Hundreds of scholarships for graduating seniors and high school graduates across Southwest Indiana and select areas of Illinois and Kentucky. Simple Application Process: Scholarships can be completed through our online Community Scholarships Common Application. Select special scholarship opportunities can be found on each community’s website. Deadline: Applications are open today and close on January 19, 2026, at 11:59 p.m. How to Apply Visit communityfoundationalliance.org/scholarships. Review the 2026 Scholarship Guidebook. Find your community and click through to its website. Review all available scholarship opportunities and their eligibility criteria for your community. Complete the 2025–2026 Community Scholarships Common Application. Receive your automatic matches to scholarships you qualify for. Submit all required materials, including essays and recommendation letters, by January 19, 2026, at 11:59 p.m. Start your application early! All supplemental materials must be submitted by the deadline, so build in plenty of time for each step. Give your references time to complete their recommendations, allow yourself enough time to write thoughtful essays, and request your transcripts early so your Guidance Counselor has time to process them. If you have any questions or need additional resources, please contact the staff member in your community. Kentucky & Illinois Michele Gates, Program Assistant mgates@communityfoundationalliance.org | 812.429.1191 Daviess County Laura Hazelman, Regional Director of Community Engagement & Impact lhazelman@communityfoundationalliance.org | 812.254.9354 Gibson County Amy Smith, Regional Director of Community Engagement & Impact asmith@communityfoundationalliance.org | 812.386.8082 Knox County Laura Hazelman, Regional Director of Community Engagement & Impact lhazelman@communityfoundationalliance.org | 812.886.0093 Perry County Emily Alvey, Regional Director of Community Engagement & Impact ealvey@communityfoundationalliance.org | 812.547.3176 Pike County Laura Hazelman, Regional Director of Community Engagement & Impact lhazelman@communityfoundationalliance.org | 812.890.4469 Posey County Amy Smith, Regional Director of Community Engagement & Impact asmith@communityfoundationalliance.org | 812.838.0288 Spencer County Emily Alvey, Regional Director of Community Engagement & Impact ealvey@communityfoundationalliance.org | 812.649.5724 Vanderburgh County Alysia Rhinefort, Regional Director of Community Engagement & Impact arhinefort@communityfoundationalliance.org | 812.422.1245 Warrick County Alysia Rhinefort, Regional Director of Community Engagement & Impact arhinefort@communityfoundationalliance.org | 812.897.2030
Estate planning isn’t just for the wealthy or elderly; it’s for anyone who wants to make sure their wishes are honored, and their loved ones are protected. Myth 1: Estate planning is only for the wealthy. Truth: Everyone has assets, your home, retirement, and personal possessions. Estate planning ensures that your wishes for your assets are carried out, providing security and peace of mind for you and your loved ones. Myth 2: It’s just about money. Truth: Estate planning also covers healthcare decisions, guardianship, and leaving a legacy for causes that are important to you. Myth 3: I can do it later. Truth: Life changes fast. A plan today protects your family and allows you to make decisions while you’re fully in control. Myth 4: It’s complicated and expensive. Truth: It can be simple. A modest plan or a gift through a community foundation can make a huge difference. Myth 5: My will is enough. Truth: Wills are just one tool. Trusts, beneficiary designations, and charitable plans help you leave a lasting and uncomplicated impact. Your legacy can make a difference in your community. A small portion of your estate can create a lasting impact through the Community Foundation Alliance.
A broad spectrum of diverse demand for a wide variety of professionals and professional services exists in southern Indiana, representing an array of actionable growth opportunities and potential market development. These opportunities were recently strategically documented in a comprehensive report funded by the Community Foundation Alliance and the Harrison County Community Foundation. The planning report, conducted in partnership with the Indiana First READI region, profiles and pinpoints specific growth opportunities for entrepreneurs in several categories, according to Jill Carpenter, President and CEO of the Community Foundation Alliance here. “Based on direct primary research conducted across multiple counties, the Indiana First Quality of Life Economic Impact Analysis report reveals market potential and entrepreneurial gaps on a county-by-county basis, demonstrating areas of real demand,” said Carpenter. “A careful review of key areas can yield some significant potential market growth for the right companies, professionals, and entrepreneurs.” The economic development executives in the First Indiana region noted that they intend to mine the report to determine opportunities for scalable market growth and talent attraction. The report offers an analysis of the potential economic impact for addressing and improving defined issues throughout the region. “This report can be a workbook for professionals looking to expand, relocate, or start up a business in multiple categories,” said Chris Pfaff, CEO of Knox County Indiana Economic Development. “It provides actionable data on what services and capacity presently exist within our counties and region, and what services residents travel outside of the county or region to buy or obtain.” “Those gaps represent a definable opportunity to be evaluated and captured,” he added. “It can serve as a talent attractor and entrepreneurial opportunity of the first order for our region.” The information is expected to help the region enhance its state and local investments from the READI program and other private investment opportunities. “In order to get feedback from each county, key stakeholders were invited to participate in community conversations regarding essential services in their county in addition to a public survey facilitated by consultants,” said Julie Moorman, President and CEO of the Harrison County Community Foundation. “We are appreciative of the input from community stakeholders in helping identify gaps in essential services and sharing their input of quality-of-life amenities in their communities.” The 191-page report, assembled by TPMA (Thomas P. Miller and Associates), includes significant data analysis and identified specific opportunities to enhance the quality of life in five southern Indiana counties, sketching out gaps that can be filled through initiative planning and growth, infrastructure investments, and elevation of talent opportunities. Actionable potential engagement highlights for growth range from healthcare and essential services to entertainment and dining, as well as professional and technical services. "The report confirms what we’ve heard anecdotally for years—many Perry County residents travel outside the county for veterinary services," said Erin Emerson, President and CEO of the Perry County Development Corporation. "Now, by pairing local insight with concrete data, we can make an even stronger case that additional veterinary services could thrive here - this is just one of many opportunities highlighted in the analysis that align with the needs of our community." The full report, which analyzes needs, assets, and potential advantages of Harrison, Knox, Perry, Pike, and Spencer counties, is available on the Southwest Indiana Development Council website in the Indiana First section: https://swidc.org/indiana-first/ The full report profiles current inventory of essential services and quality of life amenities for each county and includes recommendations for addressing growth needs. The research and planning report and related activities were funded by the Community Foundation Alliance and the Harrison County Community Foundation. Community Foundations in Pike, Perry, Knox, Spencer and Harrison counties served as partners for the planning and development of the comprehensive report. About the Community Foundation Alliance Community Foundation Alliance is comprised of affiliate Community Foundations serving nine counties throughout southwestern Indiana in Daviess, Gibson, Knox, Perry, Pike, Posey, Spencer, Vanderburgh, and Warrick counties. Through the establishment of endowed funds created by caring donors to benefit community causes, the Alliance works to improve the quality of life in affiliate counties by providing annual grants to nonprofit organizations and scholarships to local students. For more information, please visit https://www.communityfoundationalliance.org/ About the Harrison County Community Foundation Harrison County Community Foundation was founded in 1996 by the Harrison County Commissioners, with an initial donation from Caesars Southern Indiana. HCCF’s mission is to inspire and assist everyone in experiencing philanthropy, producing positive and sustainable growth in Harrison County. To date, HCCF has awarded over $133 million in grants, scholarships, and other support to Harrison County nonprofits, entities, and award recipients. The Foundation serves in a community leadership role to help grow Harrison County into the best place to live, work, and raise a family. For more information, please visit https://hccfindiana.org/ About Indiana First Representing the Indiana counties of: Harrison, Knox, Pike, Perry, and Spencer, the region was awarded $15 million from the state’s READI program, intended to accelerate projects that will enhance the area’s quality of life, and increase competitiveness for economic growth. For more information, please visit https://swidc.org/indiana-first/
The Community Foundation Alliance would like to congratulate staff member Melissa Rudolph on her recent anniversary of employment. Rudolph selected Friends of Woodmere Dog Park to receive a $500 grant through the Generosity at Work Grant Program to recognize her work anniversary with the Alliance. The recently introduced Generosity at Work Grant Program enables Alliance staff members to contribute to the communities they serve by recommending a $500 grant to the 501(c)(3) nonprofit organization of their preference through the Ronald L. Bauer Regional Fund on their work anniversary. Rudolph recently celebrated her fourth work anniversary as the Executive Assistant with the Community Foundation Alliance, supporting all nine county affiliates in southwest Indiana. She works closely with the President and CEO ensuring efficiency in all aspects of operations. Rudolph diligently focuses on our mission, which allows for a greater impact within our communities. She is vital to the effectiveness and sustainability of our organization. As both a dog owner and an advocate for creating pet-friendly spaces in Vanderburgh County, she acknowledges the potential this initiative holds. She believes that this upcoming dog park will serve as a venue for pet owners to foster social connections among their furry companions while ensuring they receive the necessary exercise. Rudolph's generous contribution to the dog park project will have a significant impact, as it will be matched dollar for dollar through a special matching grant provided by the Indiana Housing and Community Development Authority Campaign. This matching grant opportunity is available until October 27, 2023, online at https://www.patronicity.com/project/friends_of_woodmere_dog_park#!/ . Woodmere Dog Park is a privately funded and nonprofit organization. The dog park will be centrally located on Evansville’s beautiful State Hospital grounds. The dog park will provide and sustain a premier off-leash dog park in the Southwest Indiana region, to enhance the quality of life and the quality of place in this area. Learn more at woodmeredogpark.org . These grants are made possible by the Ronald L. Bauer Regional Fund, a community good fund established through his charitable remainder trust to benefit the Community Foundation Alliance’s regional grantmaking.
The Community Foundation Alliance is excited to announce the opening of a new scholarship opportunity, the Gray Farms Presidents Scholarship. $1,000 scholarships will be awarded to two graduating high school seniors who attend a high school located in one of the following counties in Illinois, Indiana, or Kentucky, have a minimum 3.0 cumulative GPA (4.0 scale), and plan to attend an accredited college or university. Illinois: Crawford, Edwards, Gallatin, Hamilton, Hardin, Lawrence, Saline, Wabash, White Indiana: Daviess, Gibson, Knox, Pike, Posey, Spencer, Vanderburgh, Warrick Kentucky: Butler, Ohio, McLean Applications for the Gray Farms Presidents Scholarship are now being accepted through the Foundation’s website at communityfoundationalliance.org/scholarships . Additional details regarding eligibility criteria and the scholarship application are also available. The application deadline is February 3, 2022, at 12:00 noon CST. The Gray Farms Presidents Scholarship is an annual scholarship established to honor the past presidents of the Gray Family business interests. This scholarship was created to encourage and provide financial assistance to high school graduates of schools located in counties where the Gray Family has historically had business.
