As we enter the new year, 2026 brings several changes to tax laws that may affect how donors and clients structure their charitable giving. Below is a list of frequently asked questions designed to help estate planning attorneys, financial advisors, and CPAs better serve philanthropic clients in the months ahead.
Why should advisors be aware of 2026 tax changes for charitable giving conversations?
As advisors track annual IRS adjustments and new tax laws, charitable giving is often addressed separately or later, if at all. However, many of the thresholds that are proposed to change in 2026 directly influence how, when, and why clients give. Viewing these updates through a philanthropic lens allows advisors to provide more holistic guidance and helps clients align tax planning with personal values and community impact early in the year.
How does the 2026 Social Security COLA increase relate to charitable giving?
The Social Security Administration’s cost-of-living adjustment effective January 1, 2026, reflects inflation and affects many retirees’ cash flow. Because older clients are among the most consistent charitable donors, conversations about updated Social Security benefits present a natural opportunity to revisit charitable intentions. Discussing philanthropy alongside retirement income can help clients plan sustainable giving strategies for 2026 and beyond.
What do higher standard deductions mean for charitable giving strategies in 2026?
For tax year 2026, the standard deduction rose to $16,100 for single filers, $24,150 for heads of households, and $32,200 for married couples filing jointly. These increases make it less likely that some clients will itemize. Reviewing these thresholds with clients creates an opening to discuss strategies such as “bunching” charitable gifts into a single tax year to exceed the standard deduction, potentially increasing both tax efficiency and charitable impact.
Why do the adjusted 2026 tax brackets matter for philanthropy?
Although marginal tax rates still range from 10% to 37%, the income thresholds for each bracket have shifted for 2026. Reviewing brackets is an ideal time to revisit charitable giving, especially considering the new limitations on itemized deductions. Thoughtful planning can help ensure that clients’ generosity remains aligned with both their financial goals and the evolving tax landscape.
What’s going on with limitations to itemized charitable deductions?
Starting in 2026, taxpayers who itemize can deduct charitable contributions only to the extent their total giving exceeds 0.5% of adjusted gross income (AGI). Meaning that the first 0.5% of AGI in donations effectively produces no charitable deduction. Also beginning in 2026, a new “cap” limits the value of itemized charitable deductions for top earners to 35%, meaning even taxpayers in the 37% bracket won’t receive a tax benefit higher than 35 cents per dollar donated. Together, the floor and cap generally reduce the tax leverage of itemized giving, making it more important for advisors to help clients plan gift timing and strategies to preserve tax efficiency where possible.
What’s new with Qualified Charitable Distributions (QCDs) in 2026?
For 2026, the per-taxpayer QCD limit increased to $111,000, and the one-time QCD limit to a split-interest vehicle rose to $55,000, both due to inflation adjustments. Clients who are age 70 ½ or older can continue to use QCDs to direct IRA distributions to charity without including them in taxable income, potentially reducing AGI and satisfying required minimum distributions. QCDs to qualified funds such as designated or field-of-interest funds at Hudson Community Foundation, though not donor-advised funds remain one of the most tax-efficient charitable tools available for donors.
How does the new non-itemizer charitable deduction affect giving?
Beginning in tax year 2026, a single-filer taxpayer who does not itemize may deduct up to $1,000 in cash donations to qualified charities, excluding donor-advised funds and private foundations. For joint filers, the cap is $2,000. While the deduction is limited and does not include gifts of stock and other appreciated assets, it may encourage new donors to begin their philanthropic journey. Advisors may find it helpful to mention this provision to high-income clients with adult children, especially because Hudson Community Foundation can accept qualifying gifts and offer opportunities for family engagement and charitable education.
How can the community foundation support advisors and their clients in 2026?
As 2026 unfolds, Hudson Community Foundation is ready to partner with you on all aspects of charitable planning. From navigating new tax rules to aligning giving strategies with client values and community needs, our team is honored to serve as your first call for charitable expertise. Thank you for the opportunity to collaborate in helping donors make a meaningful impact!
The team at the HCF looks forward to working with you and your clients to establish (or update) bequests to fulfill your clients’ charitable legacies. Give us a call!
Read more about Donors Guide to Donor Advised Funds.
With a fund at Hudson Community Foundation (HCF), advisors can manage the charitable assets on their preferred platform at any amount. Assets stay under your management. You can provide your clients with the consistent investment advice they expect. We are your partner in charitable giving!
The team at HCF is a resource as you serve your philanthropic clients. We understand the charitable side and are happy to serve as a secondary source as you manage the primary relationship with your clients. This blog is provided for informational purposes only. It is not intended as legal, accounting, or financial planning advice.
