🥪A Delicious (tax) Sandwich

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I rarely lead with tax talk when I’m writing to givers. But for U.S.-based supporters, there’s a small but meaningful change tucked into the One Big Beautiful Bill Act that could quietly shape your 2026 year-end results.

It’s called the universal charitable deduction.  While it won’t affect your 2025 December appeal, it could be a smart addition to your messaging - especially when engaging mid-level and major givers in 2026.

‍The Sandwich Version (because who doesn’t like sandwiches?)

Like any good and proper sandwich, this one has two slices of bread holding the special flavors in the middle.
Let’s breakdown our ingredients:

• The first slice of bread is the world we’ve been living in.
• The magic in the middle is the core change coming.
• The second slice of bread is the qualifier - what counts and what doesn’t.

First Bread Slice: What’s Been True

‍For years, if you didn’t itemize your taxes, you got zero benefit for charitable giving. You gave from the heart - the IRS shrugged.

‍The Magic In the Middle*: What’s Coming

‍Starting in 2026, even if you do not itemize, you can now get a tax deduction:

• Up to $1,000 for individuals
• Up to $2,000 for married couples

It’s called the universal charitable deduction - a simple, no-extra-forms way to reward givers who don’t use spreadsheets to plan their philanthropy.

‍Second Bread Slice: The Catch

‍This new deduction only applies to direct cash gifts to operating charities. Gifts to DAFs and family foundations don’t count. No clever workarounds. Just real gifts, doing real good.

Meet Donna and Johnny

They earn a combined $120,000 a year. They don’t itemize - never have. They give out of conviction and habit, sending about $2,000 each year directly to your organization.

Before 2026 (old rules):
* They took the standard deduction.
* Their $2,000 in giving didn’t affect their taxes.
* Their federal tax bill was about $10,432.

Starting in 2026 (new rules):
* They still take the standard deduction.
* But now, they can also deduct their $2,000 in charitable giving - because it’s a direct gift.
* Their federal tax bill drops to about $10,192.

💰 Tax Savings = $240

‍That $240 is essentially “found money” - a tangible bonus for a gift they were already committed to making.

Why Should You Care?‍

Most Americans - around 85–90% - don’t itemize. That includes many of your mid-level and small major givers.

Until now, they’ve received no tax benefit for their giving. And they’ve given anyway - which is beautiful.

But starting in 2026, for the first time in years, their giving can count at tax time. And while they don’t need to itemize, they will need to keep simple documentation - just like any other charitable deduction. For gifts over $250, they will need a written acknowledgment from you. Under $250? A bank record, credit card statement, or similar will suffice.

You could drop a line like this into your 2026 appeals: "This year, your giving might lower your tax bill even if you don’t itemize. It’s a new rule that rewards givers like you who show up year after year."

But Remember - Not Until 2026!

This new universal deduction does not apply in 2025.

We’re still in the final year of the old system:

• No deduction unless you itemize
• The new floor and cap rules haven’t started yet

But behind the scenes, now’s the time to start planning how you’ll roll out this shift in 2026.

‍What This Means Strategically

‍You’ve got about 6 months to craft messaging for segments like:

• Retirees with no mortgage
• High-income earners with low deductions
• First-time givers
• Gen X or Millennial givers building habits

In short: people who care about your cause and are now getting a little extra love from Uncle Sam.

‍How to Use This in Your Fundraising:

• Train your gift officers and comms team on the new rule.
• Tag likely non-itemizers in your CRM.
• Prep a 2026 message template for mid-level givers.
• Use plain language. No jargon. It should feel like a favor, not a pitch.

If you wait until Fall of 2026 to bring this up, it’ll be too late. Bake this into your communication strategy now - especially for mid-level givers - and you’ll be way ahead of the curve.

This is about honoring your givers’ intentions and removing any barrier between the resources they steward and the impact they long to make.

‍Reminder: Givers should always check with their tax professional to understand how this applies to their specific situation. If you spot errors in this week’s guide, please let me know so I can correct them.

‍The US government just gave many of our supporters a small but meaningful reason to smile. Let’s make sure they know it - and act on it.

* Mustard, Mayo, Smoked Ham, Lettuce, Tomatoes, and Sharp Cheddar (of course)

* * * * * * * * * *

‍If you haven't taken advantage of some of the resources I've created to help major gift fundraisers, take a look now!  Initial calls with me are free and "no strings attached".  Sometimes folks feel like they need to wait and not 'bother' me until they have a pressing issue.  No need for that...just make the call. 🕺

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* Major Gift Fundraising MRI Scan - A story-based self-assessment that helps you name your instincts, clarify your posture, and grow with intention. Takes less than 20 minutes and gives you a custom coaching summary based on your responses.

* JappaFry Writer - A freely available AI tool that draws from over 175 pages of original teaching, storytelling, frameworks, and strategy from my 30 year career in major gift fundraising.

‍* Follow me on LinkedIn - You'll get short pro-tips and reflections on major gift fundraising every day between 5-7am pacific.

* Breakthru Newsletter - As you've seen here, these are longer weekly posts (audio and written) sent directly to your email.

* Breakthru Blog - the newsletter from the previous week gets posted here each week for everyone (so email subscribers get it a week early).

* Breakthru Podcast - Interviews with high net worth givers about how we as fundraisers can get better at inviting them to the party.  And audio readings of Breakthru Blog posts.

‍Before getting to the PAID stuff: My opinion is that no small ministry with a tight budget should be spending more than $3-5k (total) for major gift coaching/consulting.  Most of you will be good-to-go spending far less than that.  This was a major issue for me when I was a frontline fundraiser - major gift consultants were an expensive 'black-box-of-confusion' for me.  That stops now.

‍Here's the PAID stuff:

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Finally, be sure to connect with my colleague Ivana Salloum.  She's super awesome and can help with scheduling and access to resources, etc.

I look forward to hearing about your good work!

Blessings,