If you're an individual: Starting with tax year 2026, you can deduct up to $1,000 in cash donations to recognized charities ($2,000 for married couples filing jointly), even if you opt for the standard deduction. If you itemize your deductions, the deduction applies to donations that exceed 0.5% of your adjusted gross income. For taxpayers in the highest tax bracket (37%), the deduction is capped at 35% of the amount donated.
If you are a legal entity: Starting in 2026, companies can deduct donations exceeding 1% of their taxable income, up to a maximum of 10% of annual taxable income. Amounts not deducted in a given year can be carried forward to the following five years.