Charitable giving is an important part of many individuals’ financial and tax planning strategies. Whether you make annual donations, support specific causes, or are considering a larger charitable gift, planning can help you make informed decisions and maximize the potential tax benefits of your generosity.

As you prepare for 2026, it is a good time to review your charitable giving plans, understand potential changes to deduction rules, and ensure your contributions are properly documented.

Key Charitable Giving Changes for 2026

New Threshold for Individual Charitable Deductions

Beginning in 2026, individuals who itemize deductions will generally only be able to deduct charitable contributions to the extent they exceed 0.5% of adjusted gross income (AGI).

This change may make the timing and amount of charitable gifts more important for some taxpayers. Depending on your situation, strategies such as adjusting the timing of contributions or combining multiple years of charitable gifts may be worth discussing.

New Corporate Charitable Contribution Limitation

Corporations will generally be able to deduct charitable contributions only to the extent contributions exceed 1% of taxable income, subject to existing charitable deduction rules and limitations.

Businesses should consider how charitable contributions fit into their overall tax planning strategy.

Existing Charitable Deduction Limits Still Apply

Charitable contributions continue to be subject to limitations based on the type of gift, the recipient organization, and the taxpayer’s AGI.

Examples include:

• Cash contributions to qualifying organizations may be subject to AGI limitations, including a 60% AGI limit for certain qualifying gifts.
• Noncash contributions may be subject to different limitations depending on the type of property donated and the charitable organization receiving the gift.
• Certain appreciated property contributions may be limited to 30% of AGI.
• Taxpayers who do not itemize deductions may qualify for an above-the-line deduction for cash contributions to certain qualified organizations, up to $1,000 for individuals and $2,000 for married couples filing jointly.

Because charitable deductions can vary significantly based on individual circumstances, it is important to review your giving plans as part of your overall tax strategy.

Donating Property? Documentation Is Essential

If you plan to donate property, including vehicles, securities, or other valuable assets, proper documentation is critical.

Before making a noncash contribution, be sure to:

✓ Confirm the organization is a qualified charitable organization.
✓ Obtain written acknowledgment of the donation.
✓ Maintain records supporting the property’s fair market value.

For vehicle donations, the amount of your deduction may depend on how the charity uses or disposes of the vehicle.

Avoid Charitable Giving Scams

Unfortunately, scammers often use generosity as an opportunity to commit fraud. Fake charities, misleading donation requests, and promises of unrealistic tax benefits can create financial and tax problems.

Before making a charitable contribution:

• Verify the organization’s tax-exempt status.
• Research charities using the IRS Tax Exempt Organization Search tool.
• Keep receipts and supporting documentation for all contributions.

Be cautious of arrangements that promise unusually large tax savings with little or no risk. Charitable planning should always align with legitimate tax rules and your personal financial goals.

Start Planning Your 2026 Giving Now

The most effective charitable strategies begin with a conversation before year-end decisions need to be made.

Whether you are planning regular donations, considering a significant charitable gift, or exploring ways to make your giving more tax-efficient, our team can help you evaluate options that fit your financial objectives.

Contact Us Today