What New Tax Law Means for Your Giving

Changes to the tax code beginning January 1, 2026, could affect how—and when—you choose to give to organizations/institutions/causes like the American Museum of Natural History.

What’s new:

1. Non-itemizers get a tax benefit.
   Even if you don’t itemize, you can deduct up to $1,000 (single filers) or $2,000 (married couples). So even smaller donations can make an impact. Note: Gifts to donor advised funds are excluded.
2. New floor for itemizers.
   You will need to give at least 0.5% of your adjusted gross income (AGI) to claim a charitable deduction. Consider maximizing your giving in 2025 before the new rule takes effect.
3. New limit for top earners.
   Currently, top earners get a 37-cent tax benefit for every $1 deducted. Starting in 2026, that drops to 35 cents. If you are in the top tax bracket, consider giving more this year to avoid losing tax benefits next year.

What stays:

1. Income tax brackets
   The new law permanently extends the current tax rates.
2. Standard deduction
   For 2025, it will be $15,750 for single filers and $31,500 for married couples filing jointly. If you don’t itemize, you may still benefit if you give appreciated stock, real estate, or, if you are 70½ or older, from your IRA.
3. Deduction limit for cash gifts
   You can still deduct cash gifts of up to 60% of your AGI. Consider combining your cash and non-cash assets (often called blended giving) to maximize your tax benefits and impact.
4. Estate and gift tax exemption
   It will increase to $15 million per individual/$30 million per married couple filing jointly. Your estate is likely under this amount, so focus on current giving to receive tax benefits.

Want to make the most of a gift to the American Museum of Natural History in 2025? Contact John Matthews at 212-769-5119 or jmatthews@amnh.org. We’d be happy to discuss the best ways you can create a legacy.