Ways to Help
We try to help as many Powhatan families as we can, but a critical problem remains: the lack of safe, affordable housing in the county. Habitat-Powhatan is devoted to making more attainable, safe housing available to more residents. With the help of donations, volunteers, the proceeds from the ReStore and the hard work of Habitat-Powhatan's home buyers, this dream will be possible for more households!
Tax changes will be in effect for 2026. In the excerpt below, Ally Orlando outlines the universal deduction tax break and what you need to know.
1. The universal deduction returns: A win for everyday donors
Beginning in 2026, taxpayers who take the standard deduction will once again receive a limited tax break for charitable donations—up to $1,000 for individuals or $2,000 for couples filing jointly.
For the first time in years, roughly 90% of taxpayers who don’t itemize their deductions will have a direct financial incentive to give.
What it means:
This shift could re-energize small and mid-level giving.
Donors who previously felt their gifts didn’t “count” financially now gain a tangible reason to contribute.
Clear, inclusive messaging about this deduction can help first-time donors see their gifts as both impactful and financially smart.
2. Major donors face a smaller deduction window
Under the new law, high-income donors will experience a modest reduction in their tax savings. The first 0.5% of income given will no longer be deductible, and the top marginal deduction rate drops slightly, from 37¢ to about 35¢ per donated dollar.
While the change may seem minor, for donors who give at scale—especially those considering multi-year commitments—it could influence timing, pledge structure, and giving vehicles.
What it means:
Some donors may begin “bunching” multiple years of gifts into one tax year to optimize their deduction.
Others might delay or restructure gifts through donor-advised funds or family foundations.
3. Corporate giving raises the bar
Corporations will soon need to contribute at least 1% of taxable income before their charitable gifts qualify for a deduction (up from no minimum previously).
This new rule rewards established corporate philanthropists and challenges companies that gave sporadically or below that threshold.
What it means:
Businesses giving below 1% may scale back or consolidate giving to meet the new standard.
4. Planned and legacy giving stay strong
The OBBBA also doubles the estate tax exemption to $15 million per individual (or $30 million per couple). While this change only affects high-net-worth families, it reinforces the appeal of charitable bequests, donor-advised funds, and retirement-based giving.
What it means:
Legacy conversations remain essential, even if fewer estates will face taxation.
Donors are increasingly focused on leaving a lasting mark that transcends annual budgets.
5. State-level education credits add complexity
Starting in 2027, donors in participating states may qualify for a $1,700 federal tax credit for contributions to approved K–12 scholarship funds.
What it means:
This incentive could redirect some education-related giving toward scholarship programs.
Eligibility depends on whether each state chooses to participate, adding complexity for both donors and nonprofits.
About the Author
Ally Orlando, Senior Copywriter at DonorPerfect
As a communications professional with a decade of experience, Ally helps fundraisers develop creative donor engagement techniques tailored to their mission.