Many fundraising strategies that proved effective in 2025 were driven by anticipation. Donors accelerated gifts, advanced multi-year commitments, and responded to urgency-based messaging as tax changes loomed, federal funding shifted, and socio-political events caused for need-based fundraising. In 2026, those changes are no longer hypothetical. Donors are recalibrating, and nonprofits must do the same. 

Last year’s tax law took effect on January 1st and donor behavior is already shifting. High-net-worth donors, everyday donors, and corporate funders are responding in different ways. Explore how below. 

Tax changes for high-net-worth households 

Who it affects: 
Individuals and households who itemize deductions, primarily higher earners and business owners. 

Tax law effect: 
Charitable deductions are now subject to a 0.5% floor, and itemized deductions are capped at $0.35 per dollar, even for those in the highest tax brackets. 

What it means in 2026: 
Many high-net-worth donors accelerated giving in 2025. In 2026, they are more likely to shift toward longer-term strategies such as bunching gifts, increasing use of donor-advised funds, and contributing appreciated assets. Nonprofits should be prepared for fewer urgency-driven gifts and more interest in multi-year planning and asset-based philanthropy. 

Tax changes for everyday donors 

Who it affects: 
Households that take the standard deduction rather than itemizing. 

Tax law effect: 
Beginning in 2026, these donors may deduct charitable contributions even while taking the standard deduction, up to $1,000 for single filers or $2,000 for joint filers. Some gifts remain ineligible. 

What it means in 2026: 
Everyday donors no longer need to rush giving in December to receive a tax benefit. Some may have shifted end-of-year gifts into January or may modestly increase their giving in the new year. If an organization missed their fundraising goal at the end of December, it may be wise to extend the window of gift acceptance to the end of January and send another appeal to your everyday donors sharing the 2026 benefits. The new tax code fosters a better environment for these donors, so organizations should continue to send solicitations throughout the year that engage and broaden this segment of their donor base. 

Tax changes for corporate donors 

Who it affects: 
Corporations and corporate foundations that support nonprofit organizations through charitable contributions. 

Tax law effect: 
Proposed tax changes would introduce a 1% floor on the deductibility of corporate charitable gifts. Corporations would need to give at least 1% of pre-tax profits before any contribution becomes deductible. Transfers into corporate foundations would also be affected, gradually reducing available grant dollars. 

What it means in 2026: 
Corporate giving reached historic highs in 2024 and continued to grow through 2025, in part due to favorable conditions ahead of tax changes. In 2026, that momentum may slow. Some corporations may reduce annual giving, bundle gifts across multiple years, or shift from charitable contributions to earned revenue partnerships, sponsorships, or contracts. Nonprofits that rely on corporate support should expect more scrutiny, less predictability, and work to foster stronger alignment with partners’ business goals. 

What applies to all donors 

Several provisions that once felt temporary are now permanent. Qualified Charitable Distributions (QCDs) remain a popular tool for donors age 70.5 and older, including the one-time option to fund a split-interest gift. The estate and gift tax exemption stands at $15 million per individual in 2026, indexed for inflation. 

While these policies influence timing and structure, research continues to show that donors are motivated primarily by values and impact. Legacy giving remains strong, particularly when organizations engage donors in conversations that focus on mission rather than mechanics. 

How advancement and development teams should adjust in 2026 

Donor data still matters, but interpretation matters more. Teams should review donors who accelerated gifts or fulfilled pledges early, reassess early-year major donors, and pay close attention to supporters who give through QCDs, donor-advised funds, or appreciated assets. These donors may be more drawn to more planful commitments. Appeals aimed at everyday donors should extend into January and reiterate benefits throughout the year. Corporate relationships should be evaluated through a broader partnership lens. 

Above all, fundraising in 2026 requires flexibility. 

Beyond tactics 

Tax changes may reshape when and how donors give, but they do not diminish generosity itself. What is changing is the environment around philanthropy, including new asset classes, shifting corporate incentives, and generational wealth transfer. 

Organizations that cling to transactional strategies from 2025 may struggle. Those that adapt, listen, and position themselves as trusted partners will be better equipped not just for 2026, but for the years ahead. 

For more personalized insight, contact us. We’d love to hear what’s going on with your organization. 

Citations 

James, R. (2025, July 25). How the 2025 charitable tax law changes boost the value of bunching and Dafs. How the 2025 Charitable Tax Law Changes Boost the Value of Bunching and DAFs. https://www.linkedin.com/pulse/how-2025-charitable-tax-law-changes-boost-value-dafs-russell-jqdqc/?trackingId=7riUN3vVSLeev1N7y9FgNQ%3D%3D 

The Columbus Foundation. (n.d.). Important Tax Law Changes. https://www.columbusfoundation.org/charitable-insights/important-tax-law-changes 

Note that this does not constitute formal legal or financial advice. Organizations should always encourage (or even require) donors to consult with their advisors to determine the best course of action.