The figure measures donations from individuals, foundations, corporations and bequests across the U.S. charitable sector. It includes contributions to religious organizations, educational institutions, human-services groups and other nonprofit recipients.

Giving USA reported the increase as nonprofits faced economic uncertainty and political pressure. The national total provides a broad measure of money flowing to charitable organizations, but it does not show that every nonprofit subsector grew or that every organization had more money available for its work.

What the national figure shows

The $617 billion estimate combines several donor sources and recipient categories. It is therefore a measure of charitable giving across the country rather than a financial statement for any particular organization.

The reported 3% gain is adjusted for inflation. In practical terms, the increase reflects growth beyond the effect of higher prices, rather than only a rise in the number of dollars being donated.

Giving USA described the 2025 result as a record total. The finding gives nonprofit leaders, donors and others a national reference point for the scale and direction of charitable activity, while leaving the distribution of that money among organizations and fields unspecified.

The total also combines different forms of giving. A national increase does not establish that one donor group, such as individuals, foundations or corporations, was responsible for the change. Nor does it show whether the increase was shared evenly among religious, educational, human-services and other organizations.

Bequests grew faster over the decade

Bequest giving grew faster than overall charitable giving over the decade covered by the report, according to Giving USA. That finding identifies a longer-term change in one part of the national giving mix.

It does not mean that bequests accounted for the entire increase in 2025. The report’s national figure brings together bequests with current donations from individuals, foundations and corporations, so the decade-long comparison and the single-year total describe different aspects of charitable giving.

The distinction matters when interpreting the record. A rise in total giving can coexist with different results for individual donor groups or recipient categories. The national estimate establishes the overall amount and inflation-adjusted direction, but it cannot by itself determine how much a particular nonprofit received.

Implications for charities

For nonprofit organizations, the figures offer a benchmark for understanding the broader fundraising environment. Charitable contributions can be part of the resources organizations use in budgeting, fundraising and service delivery, but the effect of a national increase depends on where donations went and on each organization’s own finances and operations.

The report also creates a basis for comparing future annual totals with 2025. The record amount and the inflation-adjusted gain indicate that giving expanded nationally during the year, even as the charitable sector operated amid economic and political uncertainty.

That result should not be read as a finding that services expanded or that every organization became financially stronger. Those questions require information about individual nonprofits and subsectors. Giving USA’s central measure is narrower: it estimates how much was given to charity across the United States during 2025 and describes how that total changed from the prior year.

For contributions made during tax year 2026, taxpayers who do not itemize deductions may be able to claim a federal deduction of up to $1,000 for qualifying cash contributions, or $2,000 for married couples filing jointly. The first tax returns affected by those gifts will generally be filed in 2027.

What changed for standard-deduction taxpayers

The new deduction is available without itemizing, but it is not a blanket deduction for every payment or recipient. The IRS says qualifying cash contributions must go to certain eligible tax-exempt organizations. Donations to individuals and individual fundraising accounts generally do not qualify.

Donors can use the IRS Tax Exempt Organization Search tool to check whether a recipient is eligible to receive tax-deductible contributions. They should also retain a bank record or written communication showing the charity’s name, the contribution date and the amount donated.

The deduction reduces taxable income; it does not mean every eligible donor will receive $1,000 or $2,000 back in reduced taxes. The actual tax effect depends on eligibility, filing status, income, tax rate and other circumstances.

Itemizers and corporations face separate limits

Taxpayers who itemize face a new 0.5% adjusted-gross-income floor beginning in 2026. Under the IRS’s 2026 guidance, only charitable contributions above that threshold may be deductible under the itemized charitable-contribution rules. Amounts below the floor cannot be deducted under that rule.

That limit is separate from the non-itemizer deduction. A gift’s treatment depends in part on whether the taxpayer uses the standard deduction or itemizes, so donors should not assume that the same contribution will receive identical treatment under both methods.

Corporations face a separate 1% floor tied to pretax profits under the new law. Nonprofits that depend on larger individual or corporate gifts will need to watch whether donors change the timing or size of their contributions.

Why donor counts and total giving could move in opposite directions

Research reported by The Associated Press projects that the new rules could encourage between 6 million and 8.7 million additional donors over time. The same research projects roughly $5.6 billion less in annual nonprofit giving because larger individual and corporate gifts could decline.

The Chronicle of Philanthropy reported a similar projection of a $5.7 billion annual net loss, based on research by Indiana University’s Lilly Family School of Philanthropy and CCS Fundraising. The figures are estimates, not IRS data or observed results from 2026.

The AP report also noted that broader economic conditions could have a much larger effect on giving in 2026 than the tax changes. The projected effects may unfold over several years and should not be presented as a confirmed decline in total giving or a guaranteed increase in donor counts this year.

For charities, the practical possibility is a wider donor base alongside pressure on average gift size, major gifts and corporate support. Nonprofits should watch both the number of donors and the total dollars raised.

What nonprofits should do now

Nonprofits should update donation pages, year-end appeals and customer-service scripts before 2026 giving peaks. Donor-facing language should identify the limited non-itemizer deduction accurately, explain that it applies to qualifying cash gifts, and avoid suggesting that every donor will receive a specific tax reduction.

Receipt systems should capture the organization’s legal name, contribution date, amount and payment information. For contributions of $250 or more, donors generally must obtain a contemporaneous written acknowledgment from the qualified organization before claiming a deduction. The IRS says the acknowledgment must generally be obtained no later than the date the donor files the return for the year of the contribution.

The acknowledgment should state the amount of cash or describe the property contributed, and it must say whether the organization provided goods or services in exchange. If goods or services were provided, the acknowledgment should include a good-faith estimate of their value.

Charities may also want to add donor database fields for gift size, recurring-gift activity, corporate relationships and major-gift timing. Filing status should not be collected unless there is a clear, voluntary and appropriate reason to do so. Cash-flow planning should include scenarios for more small-dollar donors but slower or smaller large gifts.

What donors should keep

Donors should save bank records, written communications and charity acknowledgments. A receipt alone may not establish that the recipient is eligible or show the value of goods or services received in exchange for a contribution.

The new non-itemizer provision described by the IRS applies to qualifying cash contributions. Noncash gifts have separate substantiation and valuation rules, which can include additional forms or appraisals for larger contributions.

People with complex tax situations should consult a qualified tax professional and the applicable IRS instructions. The key watch points for 2026 and 2027 will be donor awareness, average gift size, corporate giving, major-gift timing and how IRS forms and instructions are implemented.

Sources

• IRS Tax Tip 2026-57, “Tips for tracking charitable donations”
• Associated Press, “Trump’s tax law may increase the number of charitable donors but decrease gifts to nonprofits”
• Chronicle of Philanthropy, “Tax Law to Cost Charities $5.7 Billion. What to Do Now.”

The changes were enacted in Public Law 119-21 and apply beginning January 1, 2026. They alter the federal tax incentives around charitable gifts, but they do not establish that charitable giving or nonprofit revenue will rise or fall nationwide.

What changed for people who itemize

For individual taxpayers who itemize deductions, charitable contributions generally are deductible only to the extent that total contributions exceed 0.5% of the taxpayer’s contribution base. The law defines that base using adjusted gross income, generally calculated without including a net operating loss carryback amount.

For example, a taxpayer with $200,000 in adjusted gross income would generally have a 0.5% floor of $1,000. If that taxpayer gave $4,000 to qualifying charities during 2026, the first $1,000 generally would not count toward the itemized charitable deduction, while the remaining amount could generally be considered subject to other tax rules and limits. This is an illustration, not individualized tax advice.

The floor also applies to certain excess charitable contributions from 2026 and later years that are carried forward. Contributions made before 2026 and carried forward are treated under different rules. The new floor does not apply to the separate charitable deduction available to taxpayers who do not itemize.

What non-itemizers can claim

Taxpayers who take the standard deduction may claim a separate deduction for qualifying cash or check contributions to eligible tax-exempt organizations. The maximum is $1,000 for a single filer and $2,000 for a married couple filing jointly, subject to eligibility, documentation and other limitations.

The Internal Revenue Service says the provision applies for 2026 and includes worksheet instructions in Publication 505. Because this deduction is separate from the itemized deduction, the 0.5% floor does not reduce it.

How corporations are affected

Corporations face a new 1% floor based on taxable income. A corporation generally may deduct charitable contributions only to the extent that its aggregate contributions exceed 1% of taxable income.

The existing 10% ceiling remains in place. In practical terms, deductible corporate contributions generally must be above the new 1% floor while remaining within the existing 10% limit. Separate rules govern contributions carried forward to later years.

The structure may affect corporate giving differently from individual giving. A company that regularly gives well above the floor may see less immediate change in the amount it can deduct, while a company whose gifts fall below or near the threshold may receive less current-year tax benefit.

What analysts expect

The Congressional Research Service says the 0.5% floor may have a limited direct effect on giving because many taxpayers who itemize contribute more than the threshold. CRS cites data showing that the average charitable contribution among itemizers was substantially above 0.5% of adjusted gross income, while noting that effects can vary by income and donor behavior.

Independent reporting has highlighted a different possibility: the new deduction could encourage more people who take the standard deduction to give, while the new limits affecting corporations and some itemizing donors could reduce the amount given by certain existing contributors. Those are estimates and analyses, not observed nationwide results from the 2026 tax year.

The Tax Foundation has also identified possible timing effects, including donors grouping or scheduling gifts differently to make the tax treatment more useful. That could affect when nonprofits receive contributions without necessarily determining how much people give over time.

What nonprofits may need to watch

Nonprofits should avoid assuming an immediate across-the-board decline. Instead, they may want to monitor gift size and timing, the share of contributions from corporations, recurring-donation patterns, major gifts and changes among donors who itemize.

Fundraising calendars may become more sensitive to year-end timing and donor planning. Organizations that rely heavily on corporate support or occasional itemized gifts could experience different effects from nonprofits whose revenue comes mainly from small recurring contributions or households taking the standard deduction.

Donors considering significant gifts, batching or changes to their giving schedule should review current IRS guidance and consult a qualified tax professional about their own circumstances. The practical effect depends on filing status, income, gift size, gift type and whether the taxpayer itemizes.

The law changes federal tax incentives; it does not determine whether people will give. The broader effect on nonprofit revenue will become clearer only as actual 2026 donation data develops and organizations compare donor behavior, timing and other economic conditions.

Sources

• IRS Publication 505 for 2026
• Congressional Research Service analysis
• Associated Press reporting