In this episode of The First Day from The Fund Raising School, host Bill Stanczykiewicz, Ed.D. dives into the big, shiny (and slightly confusing) changes in federal tax law passed in July 2025, and what they mean for your fundraising plan in 2026 and beyond. Bill brings clarity with his signature blend of research, wisdom, and a dash of humor. The laws don’t take effect until 2026, which gives fundraisers time to plan. His top-line takeaway? Don’t panic. This isn’t the end of charitable giving as we know it, nor a sudden waterfall of donations.

One of the headliners in the new law is the return of the Universal Charitable Deduction (UCD). Everyone can now claim a tax deduction for their giving. Singles can deduct up to $1,000, and married couples filing jointly can deduct up to $2,000, starting with their 2026 giving. Research, and our collective memory of the COVID-era UCD, suggests this could spark an uptick in donations from lower- and middle-income donors. So go ahead, fundraisers: invite gifts at all levels, and make sure your donors know they can give generously and get a tax break.

New “ceiling and floor” limits for high-income donors could put a slight damper on larger gifts. Those in the top 1%, earning over $626K (single) or $751K (joint), can only deduct at the 35% rate instead of the usual 37%, potentially shrinking their incentive to give. But Bill urges fundraisers to stay calm and start conversations. Talk with major donors about how this may or may not change their giving. Likewise, the new "floor" rule, which removes deductions on the first 0.5% of adjusted gross income, is unlikely to affect generous donors giving in the $20K–$30K range. In short: tax math may change, but generosity often stays the course.

Bill also touches on a sleeper hit of the new law: the expanded SALT deduction limit, from $10,000 to $40,000, which could lead to more folks itemizing their taxes and, therefore, giving more charitably. Business owners with S-corps and those filing jointly might find fresh incentives to give. Even though businesses can no longer deduct the first 1% of giving, Bill reminds us that corporate philanthropy isn’t just about taxes; it’s about community goodwill, employee engagement, and customer loyalty. And hey, if all else fails, there’s always IRS Section 513(i), your best friend when turning sponsorships into tax-deductible marketing. Bottom line? Your mission still matters. The tax landscape may shift, but relationships and purpose are still your most powerful fundraising tools.