Tax return changes for nonprofits

From 2026, donors who do not itemize can deduct cash gifts up to $1,000, or $2,000 joint, which gives smaller donors a tax reason to give. Scholarship granting organizations in states that opt in can receive gifts that earn donors a federal credit from January 1, 2027.

Nonprofits paying contractors in 2026 report on 1099-NEC only from $2,000. Organizations with tipped or hourly staff, such as event venues, face the same 2026 tips and overtime reporting as other employers.

• Do your donor acknowledgments state clearly that a gift was cash?
• Are you, or could you become, an approved scholarship granting organization in your state?
• Which vendors and contractors will you pay more than $2,000 in 2026?

Record contributions by donor and by type, cash or non-cash, so acknowledgments are accurate. Track contractor payments by vendor with W-9s collected up front, so year-end 1099s come from the books.