Exciting news about a new federal tax provision taking effect in 2026: as a supporter of United Way of Rock River Valley, most taxpayers are now able to deduct a portion of their charitable contributions, even if you take the standard deduction.
In other words, your generosity can reduce your taxible income without the need to itemize your deductions.
Philanthropic Tax Savings with Standard Deduction
What that means:
- Single filers may deduct up to $1,000 in cash contributions to qualified nonprofits.
- Married couples filing jointly may deduct up to $2,000.
- This is an above-the-line deduction, so it applies whether or not you itemize.
Why does this matter?
Over 90% of taxpayers take the standard deduction, which has previously limited the tax benefits of charitable giving. This change ensures your generosity is recognized financially and philanthropically.
How you can take advantage:
- Make your pledge in 2025 for the 2026 tax year.
- Keep written acknowledgement of your donations (we'll provide you with an annual statement).
This is a great opportunity to make an even bigger impact in your community while also enjoying a personal benefit. If you have any questions about how this may affect your taxes, we recommend speaking with your tax advisor.
Thank you, as always, for standing with us and helping mobilize communities so that everyone can thrive!