Important Tax Law Changes Affecting Your UAlbany Charitable Giving

A new tax law taking effect January 1, 2026, preserves key giving incentives and introduces new opportunities that may impact your charitable plans. Learn how these changes could affect your support now and in the future.

Non-Itemizers: Simple Steps for Powerful Savings

Most taxpayers — about 90% — take the standard deduction, which the new tax law permanently increases. In 2025, that’s $15,750 for individuals and $31,500 for joint filers, with annual inflation adjustments moving forward.

Starting in 2026, you can also claim an above-the-line charitable deduction: up to $1,000 for individuals or $2,000 for couples—without itemizing. 

Note: Gifts to donor-advised funds don’t qualify — you must give directly to a charity.

Boost Your Impact with Non-Cash Gifts
Even without itemizing, donating appreciated assets like stock, real estate, or making qualified charitable distributions still offers meaningful savings — and are an excellent way to support the areas you care about the most at UAlbany.

Itemizing? Here’s How You Can Save

60% AGI Limit Made Permanent: You can continue to deduct cash gifts to public charities up to 60% of your adjusted gross income (AGI).

Tip: Blend cash with non-cash gifts (like stock) to maximize your deduction and impact.

New 0.5% AGI Minimum (Starting in 2026): Only the portion of your donations that exceeds 0.5% of your AGI will be deductible.

Example: If you earn $200,000, you must give at least $1,000 before a deduction applies.

Tip: If you're close to the threshold, consider accelerating gifts into 2025 to maximize benefits.

Lower Cap for High Earners: Today, taxpayers in the top income bracket can deduct 37 cents for each $1 donated. In 2026, that drops to 35 cents.

Tip: High-income donors may want to complete major gifts or pledge payments by year-end 2025 to lock in full tax value.

Estate Tax Changes: A New Opportunity for Legacy Giving

Starting in 2026, the federal estate and gift tax exemption will be set at $15 million per individual (or $30 million for married couples), with annual inflation adjustments.

This expanded exemption allows more of your assets—or large lifetime gifts—to pass tax-free. While it won’t affect most donors, it presents a powerful planning opportunity for those thinking about legacy or generational giving.

Charitable giving is one of the most effective tools for reducing your tax burden and making a lasting impact. We recommend consulting your tax advisor to explore how these changes could shape your giving in 2025 and beyond.

Please consult your tax advisor if you have any questions.

If you’d like to discuss your estate plans with UAlbany further, please contact Lori Matt-Murphy at [email protected] or [email protected].