Happy 2026! As we settle into the new year, the IRS has updated several numbers that could change how you approach your charitable giving. Here is a quick look at what’s new and how to make your generosity go further this year.

1. Higher Standard Deductions

For 2026, the standard deduction has risen to $16,100 for individuals and $32,200 for married couples.

Importance to charitable giving:
The standard deduction continues to shape how many donors structure their philanthropy. If your total itemized deductions—including charitable gifts to funds at the community foundation—exceed the standard deduction, you may benefit from itemizing. For some donors, this makes a “bunching” strategy especially attractive. By consolidating multiple years of giving into one tax year, you may be able to maximize both your tax benefit and your charitable impact.

2. A New Win for Non-Itemizers

Beginning with tax year 2026, a single filer who does not itemize deductions may deduct up to $1,000 in cash donations to qualified charities (excluding donor advised funds and private foundations). Married couples filing jointly may deduct up to $2,000.

Importance to charitable giving:
Although this deduction applies only to cash gifts and does not include contributions to donor advised funds, it presents a meaningful opportunity—particularly for emerging philanthropists and young professionals who may not yet itemize. The community foundation offers a variety of charitable funds that qualify to receive these gifts, including unrestricted and field-of-interest funds that address the region’s most pressing needs. This new provision can serve as an entry point into intentional, community-based philanthropy while building a lifelong habit of giving.

3. Expanded IRA Giving (QCDs)

For tax year 2026, the per-taxpayer limit for Qualified Charitable Distributions (QCDs) has increased for inflation to $111,000, up from $108,000 in 2025.

Importance to charitable giving:
If you are age 70½ or older, you can direct IRA distributions to charity through a Qualified Charitable Distribution (QCD) without including the amount in your taxable income. This strategy can reduce your adjusted gross income (AGI) and, if applicable, satisfy all or part of your required minimum distribution (RMD).

A QCD to a qualified fund at the community foundation—such as a nonprofit agency fund, designated fund, or unrestricted fund—is one of the most tax-efficient ways to support the causes you care about. (Please note that donor advised funds are not eligible to receive QCDs.) If you are already taking RMDs, this may be an ideal time to explore how your IRA can support both your financial plan and your charitable legacy.

4. New Itemized Deduction Rules

While federal tax rates remain between 10% and 37%, the income thresholds defining each bracket have shifted for 2026.

Importance to charitable giving:
In addition, new limitations on itemized deductions—specifically the 0.5% floor and the 35% cap—mean thoughtful planning is more important than ever. Strategic giving techniques can help ensure your philanthropy remains both impactful and tax-efficient. Our team is available to work alongside you and your professional advisors to help you navigate these changes.

5. Social Security COLA Increase

The Social Security Administration announced a cost-of-living adjustment (COLA) effective January 1, 2026. This increase reflects inflation trends and affects many retirees.

Importance to charitable giving:
Retirement often opens new conversations about purpose, legacy, and long-term impact. As income streams shift, it can be an opportune time to revisit charitable plans—whether through annual giving, IRA QCDs, or establishing a fund that supports your favorite nonprofits for years to come. If philanthropy is part of your retirement vision, we would welcome a conversation about how to align your giving with your financial and estate plans.

As 2026 gets into full swing, we invite you to connect with the community foundation team. Click here to find contact information for members of our Charitable Impact team. We are honored to partner with you in strengthening our region and are always available to discuss strategies that maximize both your impact and your tax efficiency.

As always, we recommend discussing your charitable giving plans with your professional advisor or attorney.