Tax Changes and Year-End Giving After H.R. 1
The December Deadline: Urgency and Opportunity in Year-End Giving
Our Nov. 17 webinar will offer practical information for donors about the new federal tax package
H.R. 1 (also known as the One Big Beautiful Bill Act) is already affecting Colorado women. WFCO’s new research report with analysis by the Colorado Fiscal Institute – Deepening the Divide –shows how the bill’s reduced access to SNAP, Medicaid, tax credits, and education supports hurts immigrant women, single mothers, and women of color.
But there’s another part of H.R. 1 that Coloradans need to understand: Starting Jan. 1, 2026, the rules for charitable giving change significantly. Depending on your situation, it could mean urgency and opportunity for your year-end giving.
If you’re considering a gift to The Women’s Foundation of Colorado or any nonprofit you care about, read on for practical donor information about tax changes and year-end giving after H.R. 1.
If you make charitable donations, the question isn’t if you’ll be impacted – it’s how
This summer, President Trump signed H.R. 1 into law. Three major changes to charitable giving take effect Jan. 1, 2026:
- New floors and caps for itemizers. Only gifts above 0.5% of your adjusted gross income will be deductible. If you’re in the highest tax bracket, your deduction value drops from 37% to 35%.
- A new deduction for standard deduction donors. For the first time, you can claim up to $1,000 (single filers) or $2,000 (married filing jointly).
- A new threshold for corporate giving. Corporations must give more than 1% of taxable income before any donation becomes deductible.
How will your year-end giving be impacted?
High-income itemizers
If you are a high-income itemizer, will see reduced tax benefits starting in 2026. A donor earning $500,000 who makes a $15,000 gift could see their out-of-pocket cost increase by $1,000-$1,500 in 2026 compared to 2025. The higher your income and gift size, the more significant the difference.
- What this means for your giving: If you were already planning a major gift – timing it before Dec. 31, 2025 makes financial sense.
Middle-income standard deduction donors
Middle-income standard deduction donors will receive new tax benefits for the first time starting in 2026. This is roughly 90% of taxpayers – and represents donors who’ve been giving with zero tax incentive all along.
Starting January 1, donors who take the standard deduction can claim up to $1,000 (single filers) or $2,000 (married filing jointly). For someone giving $1,500 annually, that could mean $200-$300 in tax savings each year.
- What this means for your giving: If you’ve been giving annually and taking the standard deduction, you’ll actually benefit from waiting until 2026.
Donors in transition
Donors in transition face the most complexity. If you’re on the borderline between itemizing and taking the standard deduction – maybe you itemize some years but not others – the new rules create planning opportunities.
- What this means for your giving: “Bunching” becomes particularly powerful: Make two or three years of donations in 2025 when you itemize, then take the standard deduction in 2026 and 2027. You maximize tax benefits while maintaining consistent support for the organizations you care about. Donor-advised funds make this strategy easy to execute.
Corporate donors
Corporate donors face a new 1% floor that fundamentally changes the math. For a company with $2 million in taxable income, that’s a $20,000 threshold. Gifts below that threshold receive zero tax benefit starting in 2026.
- What this means for your giving: If your company was already considering increasing support, reaching that threshold makes both mission and financial sense. Bunching is also an effective strategy for corporations as well.
Monthly donors and recurring givers
Monthly donors and recurring givers should pay attention to annual totals. If you take the standard deduction, you’ll benefit from the new deduction starting in 2026. If you itemize, your gifts remain fully deductible as long as your annual total exceeds 0.5% of your AGI (adjusted gross income).
Legacy donors and planned giving
Legacy donors and planned givers remain largely unaffected. Bequests, charitable remainder trusts, charitable gift annuities, and IRA Qualified Charitable Distributions (QCDs) operate under their own rules. If you’re making QCDs, nothing changes – this remains one of the most tax-efficient ways to give. And don’t forget – donating appreciated securities also remains highly tax-advantaged as you avoid capital gains taxes and get the full fair market value deduction.
Here’s what really matters
The tax code is changing, but the need isn’t.
You give because you believe women in Colorado deserve economic security. WINcome provides flexible cash assistance when emergencies hit. The Women & Girls of Color Fund powers grassroots organizations led by and for women of color. Policy advocacy amplifies women’s voices in rooms where decisions get made.
This work exists because the need is real and growing among Colorado women. They aren’t abstract policy debates – they’re your neighbors, coworkers, and person behind you at the grocery store. The women who carry 63.6% of student debt. The women more likely to lose Medicaid coverage. The women who need SNAP to feed their families.
When safety nets shrink, community steps up. That’s where you come in.
The more strategically you give—understanding tax changes, maximizing deductions, timing gifts wisely—the further your dollars go. And when your dollar goes further, your impact goes further.
Two opportunities to make your gift go further
- Join us Monday, Nov. 17, at 4:00 pm for a practical conversation about navigating these tax changes. “The December Deadline: Navigating the New Charitable Giving Landscape After H.R. 1” will help you understand what’s changing, explore year-end giving strategies, and make strategic decisions before December 31. Register now.
- Then give on Colorado Gives Day, Dec. 9. Your gift goes further with the community match fund. Whether you’re making your year-end donation before the tax changes take effect or taking advantage of new benefits in 2026, Colorado Gives Day is a powerful opportunity to maximize your impact. Make your gift now.
We’re here to help with year-end giving
Navigating tax changes can feel overwhelming. You don’t have to figure it out alone.
Our development team is here to help you think through strategies that align with your values and your financial situation. We can connect you with your financial advisor, walk through scenarios, and answer questions.
The rules are changing. The need isn’t.
Women in Colorado are counting on us—and we’re counting on you.
Questions? Want to talk through your specific situation?
Contact Maggie Stoot, vice president of development; Jaime Marston Cook, major gifts officer; or Marie Medina, director of development.
