FAQs: Charitable giving considerations for 2026 and beyond
A message from the CICF Collaborative, including Central Indiana Community Foundation, Hamilton County Community Foundation, IMPACT Central Indiana, the Indianapolis Foundation, and Women’s Fund of Central Indiana
Clark Collier, CAP®, CICF Director of Giving Strategies
2026 brings several changes to federal tax laws that could impact the way your clients structure their charitable giving. Check out this list of FAQs to get up to speed on what you need to know to best serve your philanthropic clients over the coming months. If you have any further questions, don’t hesitate to reach out to the Giving Strategies team at the CICF Collaborative.
Why should advisors be aware of 2026 tax changes for charitable giving conversations?
While few of us give solely for tax benefits, many of the thresholds changing in 2026 may 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 deductions. 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, particularly in light of 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 a community foundation, though not donor-advised funds—remain one of the most tax-efficient charitable tools available.
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 the CICF Collaborative can accept qualifying gifts and offer opportunities for family engagement and charitable education.
How can the CICF Collaborative support advisors and their clients in 2026?
As 2026 unfolds, our Giving Strategies team stands 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 your clients make a meaningful impact!
We look forward to working together in the year ahead.
About the Author
Clark Collier is CICF’s director of giving strategies, working with individuals, families, and their advisors to structure meaningful and impactful philanthropy. As a Chartered Advisor in Philanthropy ®, Clark provides gift planning support and counsel to the CICF Collaborative and nonprofit organizations throughout the region. He previously served as a philanthropic advisor for CICF and in development roles for both local and global organizations.
About the CICF Collaborative
CICF Collaborative is a partnership of philanthropic organizations working together to strengthen communities across the region. Each entity within the CICF Collaborative (including the cornerstone entities, Central Indiana Community Foundation, Hamilton County Community Foundation, IMPACT Central Indiana, the Indianapolis Foundation, and Women’s Fund of Central Indiana) brings deep knowledge, strong relationships, and its own individual, focused mission. The CICF Collaborative unites the entities by providing shared services, allowing the entities to operate more efficiently and effectively. By leveraging what we each do best, we’re able to better serve our communities and create more lasting impact, together. Learn more »
