New Tax Law and How To Continue Supporting Arrow Families
As we look back on 2025, we are fortunate to have you as part of our donor family who supports our mission of Helping Kids and Strengthening Families. We couldn’t do this work without you.
That’s why it is important for us to share news about tax law changes so you are informed to make the wisest decisions regarding your giving.
What’s new for 2026:
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Tax break for non-itemizers: You can deduct up to $1,000 (individuals) or $2,000 (married couples) for charitable gifts, even if you don’t itemize.
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If you do itemize, there’s a new floor on your charitable deduction: The new law adds a minimum charitable contribution rate if you itemize your deductions. The law requires taxpayers to give at least 0.5% of their Adjusted Gross Income to receive a tax benefit for their charitable giving.
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If you are in the top tax bracket, there’s a new charitable contribution limitation: Under current law, top earners get a 37-cent tax benefit for every $1 deducted. Starting in 2026, that benefit will be capped at 35 cents per dollar.
What’s staying:
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Tax brackets: The new law permanently extends the 10%, 12%, 22%, 24%, 35%, and 37% tax rates.
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Standard deduction: Most taxpayers will continue to use the elevated standard deduction — $15,750 for individuals and $31,500 for married couples in 2025. It will be indexed for inflation thereafter.
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Deduction limits for cash gifts: You can continue to deduct cash gifts to public charities up to 60% of your AGI if you itemize.
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Estate tax exemption: The federal estate and gift tax exemption will remain high and increase to $15 million per individual (indexed annually).
Key Takeaways:
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Timing of gifts: Accelerating gifts in 2025 may be worth considering.
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Thinking beyond cash: Non-cash gifts may lead to greater impact for you and Arrow as legislation introduces new complexities for itemizers.
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Talk to your advisor: And feel free to reach out to us!
We encourage you to consult with your tax advisor to understand how these changes may influence your giving in 2026 and beyond.
We remain grateful for your generosity, which helps us fulfill our mission. Please contact raven.green@arrow.org or (281) 210-1555 to talk about how donors like you can make a difference!