Important changes to the federal tax code take effect in 2026.
As you plan your calendar year-end giving, we want to make you aware of important changes coming to the federal tax code in 2026. These changes could significantly affect how charitable donations are treated, making 2025 a pivotal year for maximizing both your philanthropic impact and your tax benefits.

🧾 For Those Who Itemize Charitable Deductions

• New limits begin in 2026, including:

  • Adjusted gross income (AGI) floors

  • 35% cap on the value of itemized deductions
    
    

• Making larger or “bunched” gifts in 2025 may allow you to take advantage of the current, more favorable rules.

🏛️ For Those Considering Estate or Legacy Gifts

• Estate and gift tax exemption rises to $15 million per individual in 2026

• Acting now may help reduce your taxable estate and align your giving with existing planning strategies

 🤝For Supporters Who Do Not Itemize

• Starting in 2026, taxpayers can deduct charitable gifts up to:

  • $1,000 for individuals

  • $2,000 for married couples

• This new deduction makes it easier for all supporters — including younger donors — to get a tax benefit from their gift.

📅 Plan Ahead

Every donor’s circumstances are unique. We encourage you to consult your financial advisor or tax professional to understand how these changes may affect you and whether making a gift before the end of 2025 could be beneficial.

Want to discuss your impact at O’Dowd?
We would be honored to connect with you! 

Contact Karolyn Cherryhomes, Director of Annual Giving at (510) 577-9100 x304 or kcherryhomes@bishopodowd.org

Thank you for your generosity and for considering this unique opportunity to make a difference.