Plan Ahead: Secure Your Tax Advantages & Giving Strategies Before 2026 Changes Take Effect

To the Minneapolis Heart Institute Foundation (MHIF) community members and supporters, we have important news to share:

Newly signed tax legislation extends (and makes permanent) many current tax provisions and introduces new ones that could influence your charitable giving. Changes are coming in 2026, so we want to make sure you are informed in order to make the wisest financial decisions for you and your family.

Here are seven important elements of the new law, which takes effect Jan. 1, 2026:

What’s staying:

Tax brackets: The new law permanently extends the 10%, 12%, 22%, 24%, 32%, 35% and 37% tax rates.
Standard deduction: Most taxpayers will continue to use the elevated standard deduction — $15,750 for individuals and $31,500 for married couples in 2025. It will be indexed for inflation thereafter.
Deduction limits for cash gifts: You can continue to deduct cash gifts to public charities up to 60% of your adjusted gross income (AGI) if you itemize.
Estate tax exemption: The federal estate and gift tax exemption will remain high and increase to $15 million per individual (indexed annually).

What’s new in 2026:

Tax break for non-itemizers: You can deduct up to $1,000 (individuals) or $2,000 (married couples) for charitable gifts, even if you don’t itemize.
If you do itemize, there’s a new floor on your charitable deduction: The new law adds a minimum charitable contribution rate if you itemize your deductions. The law requires taxpayers to give at least 0.5% of their AGI to receive a tax benefit for their charitable giving.
If you are in the top tax bracket, there’s a new charitable contribution limitation: Under current law, top earners get a 37-cent tax benefit for every $1 deducted. Starting in 2026, that benefit will be capped at 35 cents per dollar.

We encourage you to consult with your tax advisor to understand how these changes may affect your giving in 2025 and beyond. Please contact the development team at 612-863-3833 to discuss how your gift can change lives at MHIF or visit our ways to give page to know all your giving options.