A new tax law in the United States, known as the One Big Beautiful Bill Act, is bringing changes that may impact how you plan your charitable contributions starting in 2026. The good news? Whether you itemize your tax return or not, there are still smart and effective ways to support the IEEE Life Members Fund and reduce your taxes.

Let’s walk through what the new law means for you:

  • Good News for Donors Who Don’t Itemize. If you typically take the standard deduction rather than itemizing, there’s a great new incentive coming your way. Beginning in 2026, you’ll be able to deduct up to:
    • $1,000 in charitable contributions (individual filers)
    • $2,000 if you file jointly as a couple

That means you can donate to the IEEE Life Members Fund while potentially lowering your taxable income, even if you don’t itemize. Your contributions support exciting opportunities for young engineers, including engineering education and workforce development, the application of technology for humanitarian causes, and the preservation of technology history.

  • Modest Changes for Donors Who Do Itemize. If you itemize your deductions, there are two changes to be aware of—both of which are relatively modest and depend on your personal situation:

1. A New “Floor” for Deductions: Starting in 2026, your charitable gifts will be deductible after they exceed 0.5% of your Adjusted Gross Income (AGI).

      • For example, if your AGI is $100,000, the first $500 of your charitable contributions won’t be deductible—but everything beyond that will still count.

2. Cap on Deductions for High-Income Donors: If you’re in the top income tax bracket (37%), your charitable deduction will now provide tax savings at a maximum of 35%, reducing the value of your deduction by just 2¢ per dollar. While the deduction will still reduce your taxable income, this slight cap may affect your overall tax savings.

Estate Tax Update: A Window of Opportunity

In addition to changes that affect annual charitable giving, the One Big Beautiful Bill Act will also have a significant impact on estate planning, particularly for those considering a legacy gift. The estate tax exemption, which had been set to revert to a lower amount in 2026, was made permanent and increased to $15,000,000 per individual in 2026 and will be indexed for inflation starting in 2027. 

What this means for you:  Those who exceed the threshold still need to contemplate and implement advanced planning to reduce estate taxes and to use exemptions to their fullest, particularly if they are concerned about the law being changed in a few years. Individuals with a net worth well below those figures still need well-thought-out living trusts and related estate planning documents. Individuals whose net worth is near those thresholds or who expect to exceed them should also consider further estate planning to stay ahead of the curve.

Regardless of how these changes affect you, the IEEE Foundation professional team is available to help you navigate them and maximize the impact of your giving.  Working together with the IEEE Foundation, we can ensure your gifts to the IEEE Life Members Fund continue to make a lasting difference and work to your financial advantage. 

About the IEEE Goldsmith Legacy League

The IEEE Goldsmith Legacy League celebrates the elite group of legacy-giving donors building tomorrow by ensuring that IEEE programs can turn their ambitions into impact. These Forever Generous donors are recognized for including the IEEE Foundation in their estate plans. The Foundation team would be honored to assist with finding the right way for you to integrate IEEE into your estate plan and join the IEEE Goldsmith Legacy League.

Learn more at www.ieeefoundation.org/our-supporters/ieee-goldsmith-legacy-league/.

This article is intended to provide general gift-planning information. The IEEE Foundation is not qualified to provide specific legal, tax, or investment advice, and this publication should not be looked to or relied upon as a source for such advice. Consult with your own legal and financial advisors before making any gift.