If you’ve ever thought about giving to a local nonprofit but weren’t sure it was worth it on your taxes, 2026 just changed the game.

A new provision in federal tax law – part of the One Big Beautiful Bill – has created what’s being called a Universal Charitable Deduction. For the first time, the vast majority of Americans can receive a tax deduction for charitable giving without having to itemize their taxes. That’s a significant shift, and it means right now is one of the best times in recent memory to start giving.

What Changed, and Why It Matters

In past years, only taxpayers who itemized their deductions – roughly 10% of Americans – could deduct charitable gifts on their federal return. Everyone else who took the standard deduction got no tax benefit for giving.

That’s no longer the case.

Starting in 2026, if you file as a single taxpayer, you can deduct up to $1,000 in charitable contributions. If you’re married filing jointly, that limit is $2,000. No itemizing required.

“Changes that affect high-income households and large corporate donors have the greatest influence on total giving levels,” said Patrick M. Rooney, Ph.D., professor emeritus of philanthropic studies and economics at the Lilly Family School of Philanthropy. “Policies that broaden incentives to give, such as the newly enacted universal charitable deduction, are likely to increase the number of people who give.”

That last part is the exciting piece: more people giving means more communities supported.

As always, tax situations vary from person to person. We encourage you to speak with your financial advisor or tax professional to understand how these changes apply to your specific circumstances.

The Easiest Way to Maximize the Benefit? Give Monthly.

The simplest way to take full advantage of the new deduction is to set up a small recurring monthly gift. Here’s how the math works out:

• Single filers: A gift of just $83/month adds up to $996 by year’s end – right at your $1,000 deduction limit.
• Married couples: A gift of $166/month reaches the $2,000 limit.

Monthly giving also benefits the nonprofits you support. Recurring donors provide organizations with reliable, predictable funding – which means they can plan programs, serve more people, and stretch every dollar further.

Why Kentucky Nonprofits Need Your Support

The impact of charitable nonprofits in the Commonwealth is staggering. According to the Kentucky Nonprofit Network’s More than Charity report, charitable nonprofits are the fourth-largest private-sector employer in Kentucky, employing nearly 179,000 Kentuckians, generating $11.9 billion in annual wages, and contributing $32.5 billion in expenditures to the state’s economy. Nearly one in ten private-sector jobs in Kentucky is at a nonprofit.

But behind those numbers are real people. Nonprofits provide critical services in every county – from health care and housing to food assistance, job training, and more. They fill gaps that government programs alone cannot address.

And right now, many of them are facing historic challenges. Demand for services is up. Funding is tight. Your support – even a modest monthly gift – makes a measurable difference.

Consider Starting With Lexington Rescue Mission – A Trusted Local Institution for 25 Years

When it comes to knowing where your money goes and trusting that it’s making a real difference, longevity matters. This year, Lexington Rescue Mission is celebrating its 25th anniversary – 25 years of serving Lexington’s most vulnerable neighbors with meals, emergency day shelter, recovery programs, and life-changing support for men, women, and families facing homelessness and crisis.

That kind of track record doesn’t happen by accident. It’s built through decades of community trust, financial accountability, and an unwavering commitment to the people of Central Kentucky. For anyone new to charitable giving and wondering where to begin, the Mission is a natural first choice – a proven, local organization that has been right here, doing the work, for a quarter century.

With the new Universal Charitable Deduction, a monthly gift of $83 doesn’t just change a neighbor’s life – it’s now fully tax-deductible for most Americans. In a milestone year for an organization that has earned its place at the heart of this community, your gift means more than ever.

To learn more or make a gift in honor of the Mission’s 25th anniversary, visit lexingtonrescue.org. To explore other Kentucky nonprofits ahead of KY Gives Day, visit candid.org.

To learn more about the OBBB, please view this webinar from the National Christian Foundation: https://www.ncfgiving.com/solutions/obbba-resources/