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The U.S. tax code may not be as thrilling as a rocket launch or a planetary flyby, but it definitely shapes how we give to the charities that inspire us. With the new\u00a0One Big Beautiful Bill Act of 2025<\/i> now in effect, our members and donors may be wondering: \u201cWhat does this mean for my year-end gift?\u201d For our members who are United States taxpayers, some substantial changes were enacted that impact\u00a0when<\/i> and\u00a0how<\/i> individuals and married couples filing jointly may take charitable deductions. Below is a summary of the changes and how they may impact your choices this year and next.\u00a0<\/p>\n
1. A new charitable deduction for non-itemizers<\/strong><\/p>\n This is good news for donors since most taxpayers don\u2019t itemize their taxes. Beginning in 2026, individuals who\u00a0do not<\/i> itemize deductions may claim a cash gift deduction of up to $1,000 for single filers and $2,000 for married joint filers. This means that even if you take the standard deduction (and thus previously could not deduct charitable gifts at all), you now may qualify for a deduction.\u00a0<\/p>\n 2. For itemizers: A 0.5% AGI floor kicks in<\/strong><\/p>\n In less good news, for those taxpayers who\u00a0do<\/i> itemize, beginning in 2026, the law imposes a floor: only charitable contributions\u00a0in excess<\/i> of 0.5% of your adjusted gross income (AGI) are deductible. In simple terms, if your AGI is $100,000, only giving that exceeds $500 will qualify as a deduction under the charitable-contribution deduction rules.<\/p>\n 3. Cap on itemized deduction benefit for high bracket filers<\/strong><\/p>\n Also beginning in 2026, for taxpayers in the highest marginal rate (37%), the tax benefit from charitable contributions is capped: you can only receive about 35\u00a2 of tax savings for each dollar given instead of 37\u00a2.\u00a0This is especially relevant for high-income taxpayers who itemize significant charitable contributions.\u00a0<\/p>\n 4. The 60% of AGI limit for cash gifts to charities is continued<\/strong><\/p>\n Another piece of good news: For taxpayers who itemize, the limit on cash gifts to public charities will remain at 60% of AGI \u2014 a previously scheduled drop to 50% has been avoided.\u00a0So if you itemize and give cash to a public charity (like The Planetary Society), you can still deduct up to 60% of your AGI (subject to other rules).<\/p>\n Here are a few things you may want to consider \u2014 always in consultation with your own tax advisor:<\/p>\n In short, the\u00a0One Big Beautiful Bill Act of 2025<\/i> has introduced both new\u00a0benefits\u00a0<\/strong>and some\u00a0drawbacks\u00a0<\/strong>when it comes to charitable giving. More Americans (i.e., non-itemizers) will begin to receive a piece of the deduction pie. But, for those who itemize \u2014 especially higher-income donors \u2014 the rules will become more complex and somewhat less generous in effective tax benefit.<\/p>\n From our vantage point at The Planetary Society, we believe that\u00a0your mission-driven philanthropy<\/i> remains as important as ever. The tax code is simply the framework for your own personal plans. We encourage you to discuss your giving strategies with your tax professional, and, if you are thinking of making a gift to support us (or other charities), to do so thoughtfully and proactively.<\/p>\n If you are considering a gift this year in light of these changes, please feel free to reach out \u2014 we\u2019re happy to walk through options with you (or your advisor) and help you maximize both your philanthropic impact and your tax-wise planning.<\/p>\n Thank you for your support of The Planetary Society \u2014 your generosity helps to inspire, connect, and mobilize the public to advance the scientific exploration of space.<\/p>\n<\/div>\nSuggested tax-wise giving strategies for 2025 and 2026<\/strong><\/h3>\n
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