Charitable Deduction Rules Are Changing: What You Need to Know

As we begin 2026, the board and team at LHCC want to say a heartfelt thank you. Your generosity has been a true blessing, making a real difference for neighbors across the Charlotte community this past year.

Beginning in 2026, the One Big Beautiful Bill Act (OBBBA) introduces new rules for charitable deductions. Here’s what you need to know:

• New “Deduction Floor” for Itemizers
  If you itemize deductions, only gifts exceeding 0.5% of your Adjusted Gross Income (AGI) will qualify.
  Example: If your AGI is $100,000, the first $500 of giving won’t count toward a deduction. If you give $1,500, your deductible amount is $1,000.

• Cap on Itemized Deductions for Higher-Income Taxpayers
  A new 35% cap on total itemized deductions may reduce tax savings for larger gifts.

• New Deduction for Non-Itemizers
  If you take the standard deduction, you’ll now be able to deduct up to $1,000 (or $2,000 for couples) for cash gifts to public charities.

Why Give in 2026?

Good News for Standard Deduction Filers

Starting in 2026, you can deduct up to $1,000 (or $2,000 per couple) for gifts to public charities—a great incentive for those who don’t itemize.

How We Can Help

If you’d like to discuss your year-end giving or explore the best options, we’re here for you. Contact Brent Morris, Executive Director, at info@lhcclt.org.

LHCC also accepts stock gifts through National Christian Foundation, which can help you avoid capital gains tax or qualify as RMD gifts.

Next Steps:

• Consult your financial or tax advisor

• Review your giving plans for 2025 and 2026

• Consider whether a 2026 gift makes sense for you

We’re truly grateful for your partnership in serving our LHCC neighbors!