Ways to Give

Did you know that 91 cents of every dollar that you give goes directly to support the homeless
in Monmouth and Ocean counties?*

At HABcore, your donation directly empowers individuals and families experiencing homelessness, providing them with stability, dignity, and hope for a brighter future. We are committed to maximizing the impact of your generosity.

*according to our latest audit

YEAR-END GIVING UPDATE!

New tax rules coming in 2026 may affect charitable deductions, so giving before year-end 2025 ensures you receive the most from your generosity!

What are the Changes to Charitable Donations Under New Tax Laws?

Key Provisions of the One Big Beautiful Bill Act (OBBBA)

The OBBBA introduces significant changes to how charitable donations are treated for tax purposes, effective from 2026. Here are the main updates:

Above-the-Line Deduction for Non-Itemizers      

Non-itemizers can deduct up to $1,000 for individuals and $2,000 for married couples filing jointly for cash donations made directly to charities. This is a permanent change.

New Deduction Floor for Itemizers

Itemizers can only deduct contributions that exceed 0.5% of their adjusted gross income (AGI). For example, if your AGI is $100,000, only donations above $500 are deductible.

Cap on Charitable Deduction Value          

For high-income taxpayers in the top tax bracket, the value of charitable deductions is capped at 35%. This means a $10,000 donation would yield a tax benefit of $3,500 instead of $3,700.

Implications for Donors

Bunching Donations: To maximize tax benefits, itemizers may consider "bunching" donations, where multiple years' worth of contributions are made in a single year to exceed the new deduction floor.

Accelerating Giving: Donors may want to make larger contributions before the new rules take effect in 2026 to take advantage of the current deduction structure.

Impact on Non-Itemizers: The new above-the-line deduction provides a tax incentive for many taxpayers who previously could not deduct charitable contributions, potentially increasing overall charitable giving.

Conclusion

These changes aim to simplify the tax benefits associated with charitable giving while encouraging more individuals to contribute. Understanding these new rules can help donors make informed decisions about their charitable contributions.

Thank you Darrin DeSeno, CPA and  HABcore Board Trustee for providing this synopsis.

**The information on this website is provided for general informational purposes only and does not constitute legal, tax, or financial advice. You should consult with your own legal, tax, and financial advisors before making any decisions related to charitable planned giving.**