Significant changes to charitable giving rules are happening in 2026 that may offer bigger tax savings for donors. When and how you donate may matter more now than ever before.
Here are a couple of things that are changing in 2026:
For those who take a standard deduction:
You will be able to deduct up to $1,000 (individual) or $2,000 (married) for charitable donations. Please note that Donor Advised Fund gifts do not qualify for this incentive.
For those who itemize:
Your charitable donations won’t qualify for a deduction until they exceed 0.5% of your adjusted gross income (AGI). For example, if your AGI is $100,000, the first $500 of charitable gifts would not be deductible.
What’s not changing in 2026?
There are plenty of tax-smart strategies for giving, regardless of the tax year!
For individuals 70½ years and older, one of the smartest ways to give is by making a qualified charitable distribution (QCD) directly through their IRA. Particularly if you’re 73 or older and have a Required Minimum Distribution, these gifts can reduce taxable income, which may also help lower your Medicare premiums and decrease the amount of Social Security subject to tax.
Giving appreciated assets that you’ve owned for longer than one year—stocks, cryptocurrency, property that no longer serves you—provides additional tax incentives regardless of how you file. By donating these assets directly, you can avoid capital gains tax and put the full value toward making a difference in your community. If you do itemize, you may also qualify for a deduction for the full market value.
We’re sharing this to keep you informed, not to give tax or legal advice. Your situation is unique, so please check with your own tax or financial advisor to understand how these changes may apply to you.
To learn more about how your generosity contributes to Richmond Habitat’s mission, please reach out to Jenn O’Rourke, CFRE, at jorourke@richmondhabitat.org or 804-299-4704.
