2026 Charitable Giving Tax Updates

Important changes to your charitable giving tax benefits are coming in 2026.

Due to the tax bill passed in July this year, giving may look a little different. You can read about all the details here, but if you’re like us and aren’t tax-savvy, here are some key takeaways:

  1. “Above-the-line” deduction for non-itemizers

    1. For the first time since 2021, non-itemizers will get a tax break for charitable giving, up to $1,000 for individuals and $2,000 for joint filers in 2026. (Note: Donations to DAFs and private foundations aren’t eligible for this new deduction)

    2. An "above-the-line" deduction means you can claim it even if you take the standard deduction.

    3. BUT the $1,000 (or $2,000) caps are across ALL organizations you give to, so if you give more than that in total to your favorite charities, this may not affect you (but the other provisions might!).

  2. Charitable deduction cap at 35%

    1. Starting next year, the tax benefit from charitable deductions is capped at 35%, which may especially affect donors in the top tax bracket. 

    2. This means that high-income filers donating $1,000 would receive a $350 deduction instead of the current $370.

  3. A new minimum for charitable deductions

    1. Starting in 2026, itemizers will face a “floor” on charitable deductions. This means that charitable gifts totalling below the first 0.5% of your Adjusted Gross Income (AGI) will not be deductible. 

    2. For example, if your AGI is $200,000, the first $1,000 in charitable gifts won’t qualify for a tax benefit – only amounts above this minimum will count towards a deduction. 

  4. Additional deduction for seniors

    1. From 2025 through 2028, taxpayers aged 65+ are eligible for an additional $6,000 standard deduction on top of the existing $2,000 (single) or $1,600 per spouse (joint) deduction. This means you may not be itemizing, and you’ll want to look for other ways to save on taxes when giving. 

    2. What you can do: Individuals who are 70½ or older can reduce their taxable income by making qualified charitable distributions (QCDs) from their IRAs. In 2025, taxpayers can make QCDs of up to $108,000 from their IRAs to charity. In 2026, this goes up to $115,000! If you’re 73 or older, a QCD will also count toward your Required Minimum Distribution (and your QCD isn’t included in your taxable income). 

What does it mean to you, and what should you do?

According to experts, here are a few ways to stay on top of these changes.

  • You may want to consider accelerating your giving into 2025 through the bunching strategy - this way, you can exceed the deduction threshold and avoid the new floor entirely. This is especially true for donors whose annual giving amount might not surpass the 0.5% AGI threshold next year

  • You have a unique opportunity to secure greater tax benefits before the new 35% cap takes effect in 2026, especially if you are thinking about giving large gifts or appreciated assets. 

  • Donor Advised Funds (DAFs) are great for smart giving! You can “bunch” by front-loading several years of giving into one big contribution to your DAF. You’ll still receive the full tax deduction right away, and then you can recommend grants from your DAF each year — keeping your annual support steady. 

  • You can also make a greater impact by mixing cash and non-cash gifts like stocks, DAFs, and QCDs that offer additional tax benefits, even if you don’t itemize. You can make all of these gifts to PSR-LA as well! Learn all the ways you can give here.

  • Consult a trusted tax professional or financial advisor to make the best gift that’s aligned with your values and charitable goals. 

  • Make sure to give while tax savings are highest! (hint: this year)

Tax laws are changing, but that doesn’t mean you have to stop supporting your favorite organizations.

And remember, it’s never too early to start planning and thinking about the legacy you want to leave. Learn more about how you can be tax-savvy, provide for your loved ones, AND make significant impact for organizations you care about, long after you’re gone by leaving a legacy gift. 

Want more information?

Here is a video that you might find helpful. In it, FreeWill Co-CEO, Patrick Schmitt, interviews Dr. Russell James (who may be the world’s leading expert on charitable giving), about some of the smartest ways to give at year-end. It’s a quick watch, and it’s pretty useful to inform your giving to any of the causes you care about. 

Thank you for your commitment to and support of PSR-LA. 

Maki T. Edpao, Director of Development