With changes in tax law that take effect in 2026, the most tax advantageous ways to give to nonprofit organizations vary, depending on your age, level of income, and whether or not you take a standard tax deduction or itemize deductions.
For people of all ages and income levels who don’t itemize their taxes and take a standard deduction, the good news for 2026 is that up to $1000 in gifts to a qualified charitable organization are tax deductible for single filers and up to $2000 in gifts are deductible for joint filers. This was not the case prior to 2026.
Actions to consider
- Taking advantage of this new tax benefit for your charitable contributions enables you to reduce your taxable income and, hence, your taxes, while furthering the missions of the charities you want to see thrive into the future. Just be sure to keep documentation of these gifts for your records–a copy of any checks, bank statements, and a written acknowledgement from the charity showing the donation date, the donor’s name and the amount of the gift.
People who itemize their taxes might want to consider that—as of 2026—any gifts made in an amount up to the first .5% of their adjusted gross income will not be tax deductible. For example, if a person’s adjusted gross income is $100,000, gifts of up to $500 to qualified charitable organizations are no longer tax deductible. Only the sum of gifts made above this new $500 non-tax deductible giving floor are tax deductible.
Actions to consider
- Consider “bunching” multiple years’ worth of charitable donations into a single tax year to reduce the impact of this new annual giving floor of 0.5% of your adjusted gross income.
- If you are under age 70 and a half, consider directly donating appreciated stock to a qualified charitable organization. Donating appreciated stock (held over one year) to a charity is advantageous because it allows you to avoid paying capital gains tax on the appreciation, while claiming a tax deduction for the full fair market value.
- If you are age 70 and a half and older and taking required minimum distributions (RMSs) from an individual retirement arrangement (IRA), consider making your charitable gifts directly from your IRA through a qualified charitable distribution (QCD). Going this route, you get the full benefit of your gift and reduce your adjusted gross income, since QCDs satisfy your RMD.
- Use a Donor Advised Fund (DAF) to reduce the giving floor impact, particularly if you ordinarily give less than 0.5% of your adjusted gross income to charity.
If you are in the 37% federal marginal tax bracket for 2026–with adjusted gross incomes of $640,600 for single filers; $768,700 for joint filers; and $384,500 for married filing separately–there is a new limit of 35% on total itemized deductions.
Actions to consider
- Explore ways to reduce your adjusted gross income that will help offset the impact of disallowed itemized deductions but still accomplish your philanthropic goals.
Whatever way you choose to give in 2026, know that your support is what makes the environmental advocacy work of SCELP possible. Nature thanks you for that!
