The One Big Beautiful Bill Act legislation (H.R.1) signed in 2025 enacts a number of modifications including some highlighted below on how charitable contributions are treated for federal income tax purposes. Many of these changes start in the tax year beginning January 1, 2026.
Now is a great time to consult with your tax, estate, or financial advisor to determine tax-smart strategies for your 2025 College of Media giving.
1. Giving from your IRA remains a tax-smart way to give to the College of Media
IRA owners age 70½ and older can still make qualified charitable distributions (QCDs) from their IRA directly to a qualified charity ($108,000 max per individual IRA owner). These gifts may count toward your required minimum distribution (RMD), if one applies, and are excluded from taxable income.
2. New limit for top earners
Currently, top earners get a 37-cent tax benefit for every $1 deducted. Starting in 2026, that drops to 35 cents. If you are in the top tax bracket, consider giving more this year to avoid losing tax benefits next year.
3. New floor for itemizers
You will need to give at least 0.5% of your adjusted gross income (AGI) to claim a charitable deduction. Consider maximizing your giving in 2025 before the new rule takes effect.
4. Tax benefit for non-itemizers
Even if you don’t itemize, beginning in tax year 2026 you can deduct up to $1,000 (single filers) or $2,000 (married couples). Note: Gifts to donor-advised funds are excluded.
Visit uif.uillinois.myplannedgift.org/new-tax-law to learn more or contact Deanne Johnson, senior assistant dean for advancement, at 217-333-0752 or jhns@illinois.edu; or Judy Schneider, UIF director of gift planning, at 217-244-3351 or judiths@uif.uillinois.edu.
The University of Illinois Foundation is the official gift-receiving arm of the University of Illinois and is a 501 (c) 3 charitable organization with EIN 37-6006007. UIF does not provide tax, legal, or accounting advice. You should consult your own tax, legal, and accounting advisors before engaging in any transaction.