For years, donor conversations followed a familiar rhythm. Fundraisers focused on generosity. Financial advisors focused on tax efficiency. Boards focused on totals raised.
That rhythm is breaking.
As 2026 unfolds, donor planning conversations are no longer just about how much someone gives – they’re about when, how, and with what. New tax rules and a more intentional donor mindset are reshaping how charitable decisions are made. For non-profits, this shift presents both a challenge and a real opportunity.
The organizations that adapt by educating donors, aligning with advisors, and engaging earlier will be better positioned to grow sustainable, long-term support.
From Generosity to Strategy: What’s Actually Changing
Charitable giving hasn’t slowed. But donor behavior has changed.
Recent federal tax law updates taking effect in 2026 are altering how donors evaluate charitable gifts, particularly around timing and deductibility. At the same time, financial advisors are integrating charitable giving much earlier into broader financial planning conversations, rather than treating it as a year-end afterthought.
The result? Donors are becoming more strategic and less transactional.
We’re seeing:
- Fewer small, ad hoc gifts
- More intentional planning tied to income events
- Greater use of donor-advised funds and appreciated assets
- Increased coordination between charitable goals and overall financial plans
This isn’t about donors being less generous. It’s about them being more deliberate.
Three Tax Changes Driving Donor Behavior in 2026
While fundraisers don’t need to become tax experts, understanding the forces shaping donor decisions is now essential.
1. A New Deduction for Non-Itemizers
Starting in 2026, taxpayers who take the standard deduction can deduct a maximum of $1,000 (single) or $2,000 (married filing jointly) in cash gifts to qualifying public charities.
Why it matters: This opens the door to millions of donors who previously received no federal tax benefit for giving. For non-profits, it signals an opportunity to engage smaller or first-time donors with education around eligibility and impact of their gifts.
2. A 0.5% AGI Floor on Charitable Deductions
Donors must now exceed 0.5% of their adjusted gross income before charitable deductions begin.
Why it matters: Small gifts may no longer move the needle from a tax perspective for higher-income donors. This is pushing donors toward:
- Bunching multiple years of gifts
- Giving larger, planned contributions
- Asking more questions about timing
3. Reduced Marginal Benefit for Top Earners
For high-income donors, the value of itemized deductions is now capped at 35% for taxpayers in the 37% bracket. For example, for someone in the 37% tax bracket, a $10,000 donation will only yield $3,500 in federal tax savings.
Why it matters: Tax incentives are no longer the sole, or even primary, driver for major donors. Conversations are shifting toward asset selection, legacy goals, and alignment with broader financial planning.
What Financial Advisors Are Doing Differently – and Why It Matters to You
Financial advisors are adjusting quickly. According to advisor trends outlined in recent planning discussions, charitable planning is no longer a “nice-to-have” conversation. It’s central to coordinating income, taxes, and assets.
Advisors are now:
- Starting charitable conversations earlier in the year
- Prioritizing asset type over gift size
- Using donor-advised funds as planning infrastructure
- Coordinating giving with liquidity events and portfolio rebalancing
For non-profits, this means donor conversations are happening with or without you. The question is whether your organization is part of them.
Why This Shift Favors Prepared Non-Profits
The new environment rewards organizations that are:
- Educational, not transactional
- Timely, not reactive
- Advisor-aware, not advisor-averse
Donors don’t expect fundraisers to give tax advice. They do value organizations that understand the landscape and can speak intelligently about charitable options.
Next Steps for Fundraisers
1. Lead With Education
Put simply, timely education builds trust. Topics donors are actively asking about include:
- Bunching charitable gifts
- Donating appreciated securities
- Using donor-advised funds
- Qualified charitable distributions (QCDs) for donors over age 70½
The intent is to not give advice but rather help donors ask better questions and inform them of types of gifts your organization accepts.
2. Segment Donors by Planning Opportunity
Non-profits can engage in charitable planning without giving formal tax advice. Frontline fundraisers can be trained to identify opportunities, highlight potential solutions, and refer to planned giving professionals when appropriate.
3. Reframe Planned Giving as a Growth Strategy
With an aging population and rising wealth concentration, planned giving is no longer optional infrastructure It’s a long-term investment in sustainability, not just a legacy program.
4. Be Advisor-Friendly
Donors trust their advisors. Non-profits that value that relationship – and position themselves as a collaborative partner – stand out.
The Bottom Line
Charitable giving is no longer just about generosity. It’s about coordination. Tax law now rewards planning and timing, and advisors will be integrating giving into broader strategies.
Non-profits that embrace this moment with education, empathy, and strategic awareness will deepen relationships with their donors. Because the future of fundraising isn’t louder asks – it’s about more intentional ones.
We can help
We can help your organization translate today’s changing tax and planning landscape into practical strategies to help advance your mission, grow long-term support, and deepen donor relationships. Schedule a call with a member of our Endowment and Foundation team today to get started.
Connect with usThe information in this paper is not intended as legal or tax advice. Consult with an attorney or a tax or financial advisor regarding your specific legal, tax, estate planning, or financial situation.
