2026 Brings big tax changes

Why now is a smart time to give

With the new year comes new federal tax laws — including several provisions that will impact charitable deductions. These changes present a unique opportunity for donors to optimize their charitable contributions before December 31, 2025.

What’s changing

Beginning January 1, 2026, new rules will reshape the way deductions are claimed:

• Itemizer Floor: A 0.5% threshold will be required before itemizers can claim deductions, adding a new layer of
  complexity.

• Top Bracket Deduction Cap: Taxpayers in the highest bracket will face a reduced deduction limit of 35%, down
  from 37%.

• Corporate Contribution Minimum: Corporations must contribute at least 1% of taxable income to qualify for
  deductions.

What you can do

Donors with outstanding pledges to Sharp or other nonprofit organizations, or individuals in higher tax brackets, may want to accelerate contributions to maximize tax benefits.