At Beaches Habitat for Humanity, we see every day how one safe, affordable home creates lasting change. Stability improves health. Opportunity expands. Families plan for the future with confidence.

And it all starts with a home.

Recent updates under the One Big Beautiful Bill Act (OBBBA), along with IRS inflation adjustments for 2026, introduce new rules that affect charitable giving. Whether you itemize your deductions or take the standard deduction, understanding these changes can help you maximize both your impact and potential tax benefits.

Here’s what’s changing and what to consider as you plan your giving.

Key Changes Under the OBBBA

1. A Universal Deduction for Non-Itemizers

For those who take the standard deduction, you can now deduct up to:

• $1,000 (single filers)
• $2,000 (married filing jointly)

for cash gifts to qualified operating charities.

What this means:
Even without itemizing, you may still reduce your tax bill while supporting causes you care about.

What to consider:
If you are charitably inclined, consider contributing the full allowable amount. Many employers also match charitable gifts, multiplying your impact.

2. A 0.5% AGI Threshold for Itemizers

Beginning in 2026, taxpayers who itemize must exceed a 0.5% adjusted gross income (AGI) threshold before claiming a charitable deduction.

If your AGI is $200,000, only donations above $1,000 would qualify.

What this means:
Smaller annual gifts may not generate a tax deduction unless they exceed the threshold.

What to consider:

• Bunch your giving: Combine multiple years of donations into one year to exceed the threshold.
• Give appreciated assets: Donating stock or other non-cash assets may help you surpass the floor while avoiding capital gains taxes.

3. A New Cap on Itemized Deduction Value

If you are in the 37% federal income tax bracket, the value of your charitable deduction is now capped at 35%.

For example, a $10,000 gift that previously reduced your taxes by $3,700 would now reduce them by $3,500.

What this means:
Your donation still counts in full toward your charitable deduction. The tax savings, however, may be slightly reduced at the highest income levels.

What to consider:
Work with your financial or tax advisor to explore ways to reduce taxable income, such as maximizing retirement contributions or deferring income, alongside your charitable giving.

Why This Matters

Tax laws change. Housing needs do not.

Across our community and around the world, too many families are still navigating life without a safe, affordable place to call home. And when housing is unstable, everything else becomes harder, health, education, employment and long-term financial security.

We know that a home is more than four walls.

A home is where children study.
Where families gather.
Where independence grows.

It all starts with a home.

Thoughtful charitable planning allows you to support that foundation in ways that align with your financial goals.