Support Our Work

For Itemizers (Higher-Income Donors):

New 0.5% Floor: Beginning in 2026, only the contribution value in excess of 0.5% of your contribution base will be deductible.

What this means for you. If you itemize, the total value of your charitable deductions will be reduced by 0.5% of your Adjusted Gross Income.  Making larger gifts in 2025 allows you to avoid this threshold and deduct the full amount of your eligible contributions under the existing rules. For example, if your contributions total $10,000 and your AGI is $100,000, the first $500 of your contributions would not be deductible but the remaining $9,500 would be deductible.

New 35% limit: Beginning in 2026, the charitable deduction reduces total taxable income, and the dollar value of the deduction will be limited to 35% for donors in the 37% bracket.

What this means for you. If you're in the highest income tax bracket (37%), the value of your deductible savings will decrease in 2026. Accelerating donations to 2025 allows donors in the 37% bracket to maximize their deduction at the current, higher rate before the 35% cap takes effect in 2026.

Giving to CSF through a Required Minimum Distribution (RMD): If you are aged 70½ and older, using a Qualified Charitable Distribution (QCD) from an IRA to fulfill a Required Minimum Distribution (RMD) presents several potential tax benefits for 2025. 

What this means for you:

• Satisfying RMDs without increasing taxable income
• QCDs are excluded from taxable income and can lower a donor's AGI.
• Lower AGI can result in lower Medicare premiums and potentially reduce the taxable portion of Social Security benefits.

Bunching contributions into a donor-advised fund

By grouping your charitable gifts from multiple years into one, you can surpass the standard deduction threshold, enabling you to itemize and claim a higher deduction for that year.

What this means for you:  The permanently increased standard deduction ($15,750 for single filers and $31,500 for married couples filing jointly in 2025) and the 0.5% AGI floor for itemizers in 2026 make bunching particularly advantageous for 2025. Using a Donor-Advised Fund (DAF) can be useful for this strategy, as contributions to DAFs are deductible in the year given. You can then distribute the funds to the Catholic Schools Foundation in 2025 and in future years while avoiding new caps and floors.

Expanding  Access to Catholic Education Through the New Federal Scholarship Tax Credit

The One Big Beautiful Bill Act (OBBBA) established a federal tax credit for donations to scholarship-granting organizations (SGOs) that provide funding for students to access tuition assistance and other education-related expenses at K-12 public, private, or charter schools. Beginning in 2027, donors across the country can make a gift to a qualified SGO like the Catholic Schools Foundation and receive a dollar-for-dollar federal income tax credit of up to $1,700, offsetting their tax liability.

Who Can Give?

• Any U.S. taxpayer can donate up to $1,700 annually to an eligible 501(c)(3) SGO and receive a dollar-for-dollar federal tax credit.
• This credit is a direct reduction of your tax owed, making it more valuable than a deduction.

Will Massachusetts Participate?

• At this time, it is not clear whether Massachusetts will opt into the program. Participation depends on the decision by the Governor. CSF is ready to serve more students if the state participates.

Who Can Receive a Scholarship?

• Students from households earning less than 300% of their area’s median income (HUD guidelines show this includes roughly 85–90% of households).
• Additional eligibility rules are determined by each SGO.

 Is there a limit to how many tax credits are available?

• No. There is no national cap, all qualifying donations are eligible for the credit.

How Are SGOs Approved?

• Governors in each state decide which SGOs are eligible to receive donations and award scholarships.
• SGOs can cover a variety of qualified education expenses, including tuition and fees.

Why give through the Catholic Schools Foundation?

CSF is the largest K–12 Scholarship Granting Organization in Massachusetts. For over 30 years, CSF has led the charge in providing scholarship aid to families, providing in-need students with a high-quality Catholic education.   CSF’s strong track record of success, financial transparency, and commitment to student achievement position us as the state’s premier scholarship-granting organization. Your donation will directly help students access a life-changing education.

For Non-Itemizers (Most Donors):

New Deduction:  The OBBB creates an “above-the-line” deduction for charitable contributions from donors who do not itemize their income tax deductions. 

Beginning in 2026, non-itemizers will be able to deduct up to $1,000 (single filers) or $2,000 (married filing jointly) directly from their gross income.  This is good news for the majority of donors who currently choose the Standard Deduction.  However, contributions to donor-advised funds (DAFs) are not eligible for the new non-itemizer deduction.

For Corporations:

New Floor on Deductions:  Similar to individuals, corporations will have a 1% floor on their charitable deductions.  The corporation will be allowed to deduct only contributions that exceed 1% of corporate taxable income.  Corporations may choose to “bunch” contributions by combining multiple years of donations into a single year to meet the 1% threshold.

Estates:

Permanent Higher “Tax-free” Threshold:  The OBBB makes permanent and indexes for inflation the higher exemption from Gift and Estate taxes which was set to expire at the end of 2025.  This means individuals will be able to pass a total of $15 million in lifetime and estate giving to heirs with no Federal tax.

Overall Impact:

Although the OBBB has introduced some changes, the law still provides generous tax incentives to encourage your charitable contributions.  Depending upon your circumstances, you may enjoy significant tax savings with a gift of appreciated securities or a Qualified Charitable Distribution from your IRA.  A life income gift can provide a lifetime of income to you along with current tax savings.