For taxpayers in the highest tax bracket (37%), the deduction for charitable contributions will be capped at 35% of your adjusted gross income (AGI) starting in 2026, down from 37% in 2025. For example, a high-income filer donating $100,000 in 2025 will receive a $37,000 deduction. In 2026, that same donation would only result in a $35,000 deduction.

What to Do Now: If you're planning a large charitable gift, consider accelerating your donation to 2025 to maximize your deduction under the current tax rules. You might also consider contributing to a Donor Advised Fund (DAF) in 2025 to secure the full deduction this year.

Starting in 2026, charitable donations will only be deductible if they exceed 0.5% of your AGI. For example, if your AGI is $200,000 and you donate $10,000, only $9,000 will be deductible, as the first $1,000 doesn’t meet the 0.5% floor.

What to Do Now: If your charitable giving is modest relative to your income, consider bundling multiple years of donations into a single year to exceed the 0.5% threshold. A DAF is a great tool for this strategy.

Starting in 2026, taxpayers who take the standard deduction can deduct up to $1,000 in charitable donations (or $2,000 for joint filers) without itemizing their deductions. This applies to donations made directly to qualified public charities, such as Long Island University. (Donations to donor-advised funds or certain private foundations will not qualify.)

For the 2026 tax year, the federal gift and estate tax exemption increases to $15 million. This means that most estates will no longer be subject to federal estate taxes. However, charitable giving remains an effective strategy to reduce your taxable estate.

What to Do Now: Consider making lifetime gifts to charity, such as gifts to Long Island University, to reduce your taxable estate and take advantage of the higher exemption.

If you’re a regular donor to Long Island University, consider bunching two or more years’ worth of donations into one tax year to clear the new 0.5% giving floor and maximize your tax benefits. By concentrating your giving, you can still take the standard deduction in other years.

A DAF allows you to contribute a large sum in one year to secure a tax deduction, and then distribute the funds over time. This strategy helps you maximize deductions in a high-income year while continuing to support Long Island University as usual.

If you’re over age 70½ and have an IRA, you can make Qualified Charitable Distributions (QCDs) directly to charity. For 2025, you can transfer up to $108,000 tax-free to a qualified charity like Long Island University. This helps you satisfy your Required Minimum Distribution (RMD) without increasing your taxable income.

Donating appreciated securities (stocks, bonds, mutual funds) that you've held for at least a year offers double benefits: you get an immediate income tax deduction and avoid capital gains taxes. Plus, your donation supports Long Island University’s programs immediately.

If you’re interested in securing income for yourself or a loved one while making a charitable gift, consider a Charitable Gift Annuity (CGA) or a Charitable Remainder Trust (CRT). These tools provide you with regular income payments and a current income tax deduction, while allowing you to direct the remainder to support LIU.