2026 Nonprofit Outlook: Changes and Opportunities Ahead

Oct 27, 2025

With new tax laws taking effect in January 2026, the approaching year-end offers a unique window for donors—both individuals and corporations—to maximize charitable deductions under current rules.

Key Changes Coming in 2026

For Individuals

Starting in 2026, taxpayers who itemize will only be able to deduct charitable contributions above 0.5% of their adjusted gross income to receive a tax benefit.
With the standard deduction remaining high ($15,750 for single filers and $31,500 for joint filers), many donors won’t benefit from itemizing unless they bunch their gifts.
The top income bracket is currently 37%, and the new law caps the tax benefit at 35% for charitable contributions. High-income donors may choose to accelerate their giving in 2025 to avoid losing tax benefits next year.

For Corporations (C-Corps)

Beginning in 2026, corporations will only receive charitable deductions to qualified charities for contributions exceeding 1.0% of their taxable income.

For the Endow Iowa Tax Credit Program

Reduction of Endow Iowa Tax Credit program from $6 million per year to $3.5 million per year.
Reduces the maximum tax credit amount from $100,000 to $50,000 per taxpayer annually.

What This Means for Your Organization

Nonprofits may see larger, one-time contributions before the end of 2025, especially from donors looking to bunch gifts ahead of the 2026 changes. Now is the time for your organization to stay ahead of the curve and here are a few helpful tactics:

Educate donors about giving strategies, especially bunching, that may benefit them under the current rules.
- “Bunching” is a charitable giving strategy that involves combining multiple years of donations into a single tax year. The goal is to exceed the standard deduction or new charitable giving thresholds to maximize tax benefits.

Encourage conversations with the Community Foundation about the benefits of Donor Advised Funds or Committee Advised Funds so they can streamline their support to your organization with grants from these funds.
Be prepared to acknowledge and steward larger or non-cash gifts.

The Community Foundation of Greater Des Moines is here to support nonprofits and their donors in navigating these changes. We’re happy to partner with you to ensure your donors and supporters have the tools and information they need to give wisely in 2025 and beyond.

Learn more about the tax changes in this helpful FAQ. We also encourage your donors to reach out to their attorney, CPA and financial advisor to evaluate how the changes in the new tax law may impact their own situation.