2026 Charitable Tax Rule Checklist

Tax year 2026 brings updated thresholds, inflation adjustments, and renewed charitable incentives. We’ve distilled the most relevant changes into a five-point checklist to help you easily assess planning opportunities for your clients. In just a few minutes, you’ll be prepared to discuss new benefits for non-itemizers, standard deduction updates, and other shifts that could influence charitable strategy in the year ahead.

Discuss Social Security COLA Increases 

The Social Security Administration announced a cost-of-living adjustment (COLA) increase effective January 1, 2026. This increase reflects inflation’s trajectory and affects many retirees who also engage in philanthropy. 

Importance to charitable giving: A 2.8% COLA for 2026 will help retirees maintain purchasing power to match inflation, and some may see this bump in monthly income as an opportunity to increase their charitable giving.  Given that a high percentage of older cohorts give to charity each year, discussing your clients’ Social Security benefits is a logical juncture to also bring up charitable giving plans for 2026 and beyond. 

Review Standard Deduction Increases

For tax year 2026, the standard deduction increased. 

• $16,100 for single taxpayers 

• $24,150 for heads of households 

• $32,200 for married couples filing jointly 

Importance to charitable giving: If a client’s total itemized deductions — including charitable gifts — exceed the standard deduction, they are eligible to itemize. Reviewing this threshold and considering a “bunching” strategy (accelerating multiple years of giving into one tax year) can help maximize charitable support through 2026 and beyond. A donor-advised fund is a great tool for those clients considering “bunching” because it allows your clients to donate on their timeline and make grants to support their favorite causes in the future. 

Take Another Look at Tax Brackets 

Though the tax rates remain at a range from 10% to 37%, the income levels that define each bracket for 2026 have shifted.  

Importance to charitable giving: Examining tax brackets with clients presents a timely opportunity to discuss their charitable giving strategies.  Their tax bracket is not just a number, it is the price of income. When a client moves into a higher bracket, every additional dollar they earn is taxed more heavily. Charitable giving becomes most powerful precisely at these moments, because deductions, exclusions, and income-offsetting strategies have their greatest leverage when the marginal rate is highest. With new rules for how much you can deduct in charitable contributions, it’s important to help clients plan carefully so that their philanthropy remains tax efficient. 

Don’t Forget QCDs

For tax year 2026, the per-taxpayer limit for Qualified Charitable Distributions (QCDs) has been increased for inflation to $111,000, up from $108,000 in 2025. And, the limit for a one-time QCD from an IRA to a split-interest vehicle has been adjusted for inflation to $55,000, up from $54,000.  

Importance to charitable giving: Because clients age 70 ½ or older can direct IRA distributions to charity without including them in taxable income (a “Qualified Charitable Distribution”), these clients can reduce their AGI and, if applicable, satisfy all or part of their required minimum distributions (RMDs). A QCD to a qualified fund at the Community Foundation (such as a designated or field-of-interest fund but not a donor-advised fund) remains one of the most tax-efficient ways to support charity.  

Revisit Tax Benefits for Non-Itemizers

Beginning with tax year 2026, charitable giving once again delivers a federal tax benefit to people who do not itemize. Single filers may deduct up to $1,000 in qualifying charitable cash gifts, and married couples filing jointly may deduct up to $2,000. This deduction applies only to cash contributions made directly to qualified public charities and excludes donor-advised funds and private foundations. 

Importance to charitable giving: Nearly 90% of taxpayers do not itemize, meaning most Americans have spent years giving with no federal tax recognition. This new deduction sends an important signal that charitable giving is accessible to more people, not just those using advanced planning strategies. It creates a clear entry point for individuals who may never have associated philanthropy with tax planning before, including young professionals and early-career earners. 

For advisors, this provision offers a practical way to introduce charitable conversations with clients who are newer to giving or who assumed there was no tax benefit available to them. Even modest deductions can open the door to deeper discussions about values, purpose, and community impact, strengthening the advisor-client relationship in the process. 

While the deduction is limited in scope and does not apply to appreciated assets or donor-advised funds, it can serve as a meaningful starting point. Community foundations can support this early-stage generosity through non-donor-advised fund options, such as community-led collective giving groups, allowing donors to participate locally, learn about philanthropy, and still qualify for the deduction. 

Closing Thoughts

As 2026 gets into full swing, please reach out to our team by connecting with Gen Luce at  585.341.4363 or gluce@racf.org. We are honored to be your first call on all matters related to charitable giving. Thank you for the opportunity to help you serve your clients.