If you’ve been thinking about making a year-end gift to Harmony & Healing, you picked a good year to do it.
Earlier this year, Congress passed the One Big Beautiful Bill Act, which changes how charitable donations are taxed starting January 1, 2026. The short version: giving in 2025 will likely save you more on taxes than giving the same amount next year.
We’re not tax advisors, and we absolutely encourage you to talk to your tax advisor. But here’s what we’ve learned that might help you plan.
What’s Changing in 2026
A new “floor” on deductions. Starting next year, if you itemize your taxes, you can only deduct charitable contributions that exceed 0.5% of your adjusted gross income. So if your AGI is $200,000, the first $1,000 of your charitable giving won’t count toward your deduction. That floor doesn’t exist in 2025.
A cap for high earners. Taxpayers in the top 37% bracket will see their deduction benefit limited to 35 cents on the dollar. Previously, every dollar donated reduced taxes by 37 cents. That’s a meaningful difference for larger gifts.
Corporate giving gets a floor too. Businesses will only be able to deduct contributions exceeding 1% of taxable income. Companies with smaller or less consistent giving programs may find less tax benefit going forward.
None of these limits apply to gifts made before December 31, 2025.
What This Means for You
If you were planning to support Harmony & Healing next year, or the year after, you might consider bunching those gifts into 2025. Combining two or three years of giving into a single contribution lets you capture the full deduction under current rules.
For example, if you typically give $5,000 annually, a $15,000 gift this year would be fully deductible now, whereas spreading it over three years starting in 2026 means a portion of each year’s gift falls below that 0.5% floor.
If you’re not ready to choose specific amounts or timing for future support, a donor-advised fund (DAF) lets you take the 2025 tax deduction now and distribute the funds to Harmony & Healing (or other charities) over time.
If You’re Over 70½
Here’s something worth knowing: Qualified Charitable Distributions (QCDs) from your IRA bypass these new limits entirely.
Donors over age 70½ can give up to $108,000 directly from their IRA to a qualified charity like Harmony & Healing. That amount is excluded from your income, so you never owe taxes on it. The 2026 floors and caps? They don’t apply. It’s one of the most tax-efficient ways to give, and it counts toward your required minimum distribution.
If you have IRA assets and charitable intentions, a QCD is worth discussing with your financial advisor.
A Silver Lining for Smaller Donors (Starting in 2026)
Not everything in the new law is restrictive. Beginning next year, people who take the standard deduction (roughly 85% of taxpayers) will be able to deduct up to $1,000 in charitable gifts ($2,000 for married couples filing jointly).
This is actually an improvement. Under previous rules, standard-deduction filers got no tax benefit for charitable giving at all. So if you’re a modest but consistent supporter of causes you care about, 2026 brings a small win.
Why Your Gift Matters
Every donation to Harmony & Healing funds live musical performances for patients in hospitals, hospice facilities, rehabilitation centers, and memory care communities. Our professional musicians perform in patient community spaces and via Zoom, bringing comfort to people during some of the most difficult moments of their lives.
A single music therapy session can reduce pain by an average of 2 points on a 10-point scale. It lowers anxiety and stress. And it costs nothing to the patients and families we serve.
Your support makes that possible.
Ready to Give?
If you’d like to make a 2025 gift, visit HarmonyAndHealing.org/donate or contact us to discuss options like stock transfers, DAF grants, or IRA distributions.
And please, talk to your tax advisor. The rules are new, and your situation is unique. We just want to make sure you have the information you need to make the choice that’s right for you.
Thank you for being part of this mission.