The Benefits of Charitable Giving in 2026
Key tax changes to consider starting next year
The Benefits of Charitable Giving in 2026
Earlier this year, Congress passed the One Big Beautiful Bill Act, which included changes to the tax code that may impact Scripps donors and potential donors. New rules taking effect in 2026 apply to non-itemizers, some families paying estate taxes and high-income donors — though in very different ways.
“Every donor’s situation is unique, so we encourage you to consult your professional advisors,” says Lisa Kennedy, senior director of development and gift planning, Scripps Health Foundation. “We’re happy to collaborate with them to help you make the most of your philanthropic giving.”
Key changes:
- Starting in 2026, non-itemizers can deduct up to $1,000 for individuals and $2,000 for couples in cash gifts to public charities.
- Also starting in 2026, the federal estate tax exemption will increase to $15 million per person, meaning most families will avoid estate taxes.
For those with estates over the $15 million threshold, charitable giving can be a strategic way to both benefit the community and limit the 40% tax impact.
“Beginning in 2026, the federal estate tax will only apply to estates above $15 million, or $30 million for married couples,” says Jennifer Sinex, former chair of the Scripps Health Foundation Gift Planning Advisory Council and an estate planning attorney and partner at Weitzen Phillips Samuth & Sinex. “That means the vast majority of California families will not be impacted by an estate tax, since California has no separate estate tax.”
Additional changes to consider:
- For people in the highest tax bracket (37%), charitable deductions will be capped in 2026. That means a $100,000 donation in 2026 would yield $2,000 less than in 2025.
- Beginning next year, charitable contributions adjusted for inflation will be deductible. For large gifts, it may be prudent to give in calendar year 2025.
“The upcoming changes highlight how important it is for donors to work closely with both their professional advisors and the charities they care about,” says Paul Hynes, former chair of the Scripps Health Foundation Gift Planning Advisory Council and director in wealth management, Partner, Aspirant, LLC. “The best outcomes come from thoughtful planning that aligns charitable goals with tax-efficient strategies.”
For donors planning to take advantage of year-end giving in 2025 or structuring a long-term legacy gift, ensuring an impactful and tax-efficient approach helps maximize the benefits. For those considering a first-time contribution or amplifying their generosity, there are many reasons to choose Scripps.
“People make philanthropic gifts because they care deeply about the organization, because they’ve had a great experience as a patient or they’ve undergone a life-changing procedure,” Kennedy says. “Others want to support clinical research and innovation happening at Scripps. Then there are donors who simply want to ensure that the best-possible health care is available for the San Diego community.”
This content appeared in San Diego Health, a publication in partnership between Scripps and San Diego Magazine that celebrates the healthy spirit of San Diego.
The generosity of our donors has been critical to our growth and success over the last century, and continued philanthropic support will help make our plans for the future a reality. Learn about more ways to support Scripps through our Here for Good capital campaign.