Most taxpayers will take the standard deduction, but a new “above-the-line” deduction allows up to $1,000 for individuals or $2,000 for couples filing jointly for cash gifts to Habitat. For those who itemize, charitable deductions will only apply to the portion of gifts that exceed 0.5% of adjusted gross income (AGI).

This means some smaller gifts may no longer reduce taxable income. The good news: IRA Qualified Charitable Distributions (QCDs) are not affected by these changes. If you’re 70½ or older, you can give directly from your IRA to Habitat, lowering your taxable income—even if you don’t itemize. It’s one of the simplest, most tax-efficient ways to make a lasting impact for families in need of safe, affordable housing.

Frequently Asked Questions

What’s changing? Starting in 2026, charitable deductions will look different. Non-itemizing donors can claim a modest deduction for cash gifts, while itemizers can only deduct gifts above 0.5% of AGI.

Does this affect my IRA gift? No. IRA Qualified Charitable Distributions (QCDs) remain one of the most tax-efficient ways to give. You can still transfer up to $105,000 directly from your IRA to Habitat each year without itemizing.

Should I change how I give? Consider speaking with your financial advisor to determine the best timing and method for your charitable gifts. You may also want to make larger or bundled gifts in 2025 before the new rules take effect.

How does my gift help? Your generosity helps Habitat build safe, affordable homes for families worldwide. No matter how tax laws evolve, your gift creates lasting impact and hope.