New tax laws begin January 1st — see how they affect your giving

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New tax law changes may impact your family’s year-end giving.  

Congress passed new federal tax provisions this summer in the Budget Reconciliation Act that will take effect on January 1, 2026. These changes impact how charitable deductions work for many donors — and may influence your giving. 

Because you are such an important partner in our mission to nourish families across Central and Eastern North Carolina, I want to ensure you have the information you need to make informed decisions about your philanthropic plans. 

What's Changing in 2026

Beginning January 1, 2026, new rules will affect the calculation of charitable deductions, including: 

  • For taxpayers in the highest marginal tax bracket, the tax benefit of a charitable deduction will decline slightly (from ~$0.37 on the dollar to $0.35)
  • A new “floor” means that only contributions exceeding 0.5% of adjusted gross income (AGI) will qualify for a deduction.
  • The 60% of AGI limit for cash gifts remains in place, but the reduced deduction value may influence timing decisions for major gifts and pledge payments. 

Why This Matters for 2025

Because these changes take effect January 1, 2026, charitable contributions completed on or before December 31, 2025 will still fall under the current deduction rules, which may provide greater tax benefit for some donors — especially those planning significant contributions in the next 12–18 months. 

For many supporters, it may be beneficial to accelerate pledge payments or make a portion of a future gift this year. Taking steps now can: 

  • Maximize the current deduction rate before upcoming federal tax changes take effect.
  • Provide immediate support for families navigating soaring food costs, disruptions and uncertainty surrounding SNAP grocery support, and the widening gap between household budgets and essential needs.
  • Strengthen the Food Bank’s ability to meet unprecedented and sustained demand across all 34 counties – ensuring we can keep fresh, locally-grown food flowing in our communities despite ongoing economic and policy disruptions. 

Now Is an Important Time to Give

Combined with near-unprecedented need in our region, these upcoming changes make early support more timely and impactful than ever. If you are considering a 2025 or future-year gift, completing it this year may be beneficial from both a tax and mission standpoint. 

Make your year-end gift today and help ensure every family has access to the resources they need to thrive. 

Make Your Year-End Gift Before Tax Changes Go Into Effect

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How Our Team Can Support You 

Every donor’s situation is unique, and we always encourage you to speak with your tax or financial advisor to understand what approach best aligns with your goals. That said, if you’re evaluating year-end giving opportunities, we are here to help you: 

  • Explore giving options that may offer enhanced tax advantages
  • Coordinate with your advisors to ensure your charitable plans remain tax-efficient
  • Identify areas of our work or counties where your support could have the greatest near-term impact   

If you would like to discuss any of this further — or simply explore your giving options — our team would be honored to connect. Please don't hesitate to email us or call 919.875.0707.

Thank you for your generosity and for standing with us during such a critical moment for our communities!

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