News & Stories

As we approach the end of 2025, new federal tax legislation passed this summer will soon take effect — and it’s poised to shape how individuals and families give to the causes they care about most.

While these updates are complex, one thing remains clear: charitable giving will continue to make a powerful difference in communities across the country. Understanding the changes now can help donors plan strategically — and ensure that generosity continues to have the greatest possible impact.

What’s Changing

Beginning January 1, 2026, the new tax code will introduce several changes affecting charitable deductions, particularly for high-income households and those who itemize their taxes:

• A 0.5% deduction floor: Individuals can only deduct charitable gifts that exceed 0.5% of their adjusted gross income. For example, someone with $500,000 in income will not be able to deduct the first $2,500 in charitable contributions.
• Caps on itemized deductions: The total amount that taxpayers can deduct — including charitable gifts, mortgage interest, and state and local taxes — will be limited for certain income brackets.
• Incentives for gifts from assets: With these new limits, advisors anticipate greater interest in non-cash giving options, such as appreciated stock, retirement assets, or donor-advised funds.

What This Means for Donors

These changes may shift how donors choose to give — but not why they give. For many, charitable contributions are driven by purpose, not policy. Still, understanding the rules can help you make informed, tax-efficient choices.

Here are a few considerations:

• Bundle or “bunch” gifts: Donors may find it beneficial to consolidate charitable giving into specific years to maximize deductions.
• Explore non-cash gifts: Appreciated assets, donor-advised funds, and estate gifts can be powerful tools for supporting causes while optimizing tax outcomes.
• Engage your advisor early: Financial and philanthropic planning often go hand in hand. Now is the time to talk with your financial advisor or tax professional about how these changes might affect your giving strategy in 2026 and beyond.

Our Takeaway

At The Cooper Foundation, philanthropy fuels innovation, compassion, and progress across Cooper University Health Care — from patient support programs to groundbreaking research and capital projects.

As the giving landscape evolves, we remain deeply committed to helping donors make the most meaningful impact possible. Whether through one-time gifts, planned giving, or strategic partnerships, every act of generosity strengthens the care we deliver and the communities we serve.

If you’d like to learn more about charitable giving options or how your support can make a difference, please reach out:

Because tax laws and charitable-giving rules continue to evolve, we encourage you to consult your financial or legal advisor to determine how the latest changes may affect your giving options.

Please note that The Cooper Foundation is an independent, charitable, tax-exempt 501(c)(3) organization (Tax ID number is 22-2213715) and the philanthropic, community outreach and community development arm of Cooper University Health Care. The Cooper Foundation does not provide tax, legal, or financial advice. Any document or information shared by our staff is intended to be educational and informational. The Cooper Foundation strongly encourages all our benefactors to seek counsel from their own legal and financial advisors. Please know that any information or documents shared by the Cooper Foundation staff cannot be used to avoid tax-related penalties.