US Markets
Home›US Markets›Sectors›Bessent backs tighter nonprofit disclosure as charitab…
Bessent backs tighter nonprofit disclosure as charitable deductions change
Starting with the 2026 tax year, standard filers can deduct up to $1,000 in cash donations, while itemizers get relief only above 0.5% of adjusted gross income.
Treasury Secretary Scott Bessent is supporting a package of nonprofit disclosure bills, aiming to tighten scrutiny of how charitable donations are handled after they leave donors accounts and before receipts are claimed.
The policy push arrives as the tax rules for giving change for the 2026 tax year, including a new standard-deduction option for certain cash donations. According to Fidelity Charitable, standard-deduction filers can write off up to $1,000 in cash donations, or $2,000 for joint filers, a benefit that did not exist on last years return.
For taxpayers who itemize, the threshold for deductibility has also moved. Gifts are now deductible only to the extent they exceed 0.5% of adjusted gross income, so a couple earning $300,000 would receive no deduction on the first $1,500 they give, according to the firm.
The story also cites Giving USA data showing that Americans gave $617.2 billion in 2025, the first year total giving cleared $600 billion. It notes individuals accounted for $394.2 billion of that total, or 64 cents of every charitable dollar, framing the measure as targeted at household giving and donor compliance at tax time.