2026 Tax Changes Advisors Should Know About Charitable Giving
Here’s how new tax rules, deductions and planning opportunities will shape philanthropic strategies this year.
By Mariah Brook, Director of Gift Planning
The dawn of 2026 brings several changes to tax laws that could impact the way your clients structure their charitable giving.
To ensure this information is not lost on estate planning attorneys, financial advisors and CPAs, check out this list of FAQs to get up to speed on what you should know to serve your philanthropic clients in the coming months.
Why should advisors be aware of 2026 tax changes for charitable giving conversations?
Many of the thresholds changing in 2026 directly influence how and when clients give. Viewing these updates through a philanthropic lens allows advisors to provide more holistic guidance, helping clients align tax planning with their community impact and personal values early in the year.
How does the 2026 Social Security Cost-of-Living Adjustment increase impact charitable giving?
According to Nonprofit Tech for Good, older clients are among the most consistent charitable giving donors, and with the Social Security Administration’s cost-of-living adjustment (COLA) in effect as of January 1, it may impact retirees’ income. That’s why conversations about updated Social Security benefits present a natural opportunity to revisit charitable giving intentions with your clients and plan sustainable giving strategies for 2026 and beyond.
How will higher standard deductions impact charitable giving strategies in 2026?
| Standard Deduction | Single; Married Filing Separately | Married Filing Jointly; Surviving Spouses | Heads of Households |
| TY 2025 Under OBBB | $15,750 | $31,500 | $23,625 |
| TY 2026 Under OBBB | $16,100 | $32,200 | $24,150 |
The 2026 standard tax deduction rose to $16,100 for single filers, $24,150 for heads of households and $32,200 for married couples filing jointly.
These changes create opportunities to discuss strategies such as “gift bunching.” By bunching their charitable gifts into a single tax year to exceed the standard deduction, your clients can potentially increase both their tax efficiency and charitable impact. Pairing a donor advised fund at the Saint Paul & Minnesota Foundation with a gift bunching strategy can maximize a donor’s tax planning while simultaneously ensuring they can give each year to their favorite organizations.
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 shifted in 2026.
Reviewing brackets is an ideal time to revisit charitable giving, especially in light of the new limitations on itemized deductions. Thoughtful planning can help ensure that your clients’ generosity remains aligned with both their financial goals and the evolving tax landscape.
What are the limitations to itemized charitable deductions?
As reported by CNN, starting in 2026, taxpayers who itemize can deduct charitable contributions only to the extent their total giving exceeds 0.5% of their 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 nonprofits without including them in taxable income, potentially reducing AGI and satisfying required minimum distributions. QCDs to qualified funds at the Foundation — such as designated or field-of-interest funds, though not donor-advised funds — remain one of the most tax-efficient charitable tools available.
How does the new charitable deduction impact giving for clients who don’t plan to itemize?
A single-filer taxpayer who does not itemize may deduct up to $1,000 in cash donations to qualified organizations, 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 or 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 Saint Paul & Minnesota Foundation can accept qualifying gifts and offer opportunities for family engagement and charitable education.
How can the Foundation support advisors and their clients in 2026?
We are ready to partner with you and your clients in all aspects of charitable planning. If you would like to learn more about navigating new tax rules, aligning giving strategies with client values and community needs or more, contact a gift planner on our Philanthropic Services team. We look forward to the opportunity to collaborate with you in helping your clients make a meaningful impact.
The Saint Paul & Minnesota Foundation does not provide tax, legal or accounting advice. Please consult your own tax, legal and accounting advisors regarding your individual situation before engaging in any transaction.
As Director of Gift Planning, Mariah helps individuals and families initiate and express their philanthropic plan to maximize their giving. In her role, Mariah also provides nonprofits the support to start and grow their endowments and works alongside professional advisors to help them achieve their client’s philanthropic goals. The most rewarding part of her job is watching donors be open-handed with the resources they have and the impact it has on community.
Mariah joined the Saint Paul & Minnesota Foundation in 2014 after graduating from the University of Minnesota with a bachelor’s degree in communication studies. She is involved in her community through various leadership and volunteer roles at her church in downtown Minneapolis and serves on the board of a family support center.
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