The rules for charitable giving have changed under the new tax law making 2026 a good time to consider strategies to make the most of the tax benefits available to you and your impact for the charities you love. 

NON-ITEMIZERS: A NEW REASON TO GIVE IN 2026
We have good news for those of you who do not itemize on your taxes and give, or want to give, to Partnership – beginning in 2026, you can now deduct up to $1,000 in qualifying cash gifts ($2,000 for a joint return) from taxable income in addition to the standard deduction! 

This is the first permanent non-itemizer charitable deduction in forty years. The Economic Recovery Tax Act of 1981 created a graduated provision that expired after 1986. Similarly, the CARES Act of 2020 that created a temporary $300 “above-the-line” charitable deduction for non-itemizers.  

Congress is once again using the tax code to encourage charitable giving among the large population of taxpayers who do not itemize. This 2026 provision is more robust and will not expire. 

Situations that don’t qualify under this new tax law include: 

  • Donations of tangible (inkind) items such as clothing, furniture, etc. 
  • You received something of value. In this case, you must deduct the fair market value. 
  • You give more than the deduction cap. 
  • You made a pledge but no charitable gift. 
  • You don’t have adequate records. Fortunately, we keep great records and are just a call or email away! 

Your generosity can make a difference and potentially provide a tax benefit making this a great year to give! 

ITEMIZERS: CONSIDER A DONOR ADVISED FUND OR GIFT OF APPECIATED INVESTMENTS
The new tax bill is not as kind but does not eliminate the charitable deduction for people who itemize. The key change is that, beginning in 2026, an itemizer generally gets a charitable deduction for the portion of annual contributions above 0.5% of their adjusted gross income (AGI). For someone with an AGI of $100,000, the first $500 of charitable giving generally will not produce an itemized deduction. In this scenario, giving $10,000 would leave approximately $9.500 potentially deductible, subject to the other charitable-deduction rules. 

While some individuals are considering “bunching” several years of giving, most charities will tell you this leaves them vulnerable.  

Many individuals are using Donor Advised Funds, making larger charitable contributions in one year to receive the available deduction, and then making grants to charities over subsequent years.  

Partnership works closely with a local financial services company to accept appreciated stock. This way, you may be able to contribute the appreciated asset directly to Partnership. There is no minimum threshold or fee to be concerned about. Simply contact our Philanthropy team for more information. 

As always, consult your tax profession for advice. 

Whichever strategy you choose, we are grateful for your continued support.