Six Smart Ways to Give to Charity Before Year-End

Summer is the right time to start thinking about charitable giving—not December. Decisions made now, before year-end pressure sets in, tend to produce better tax outcomes and more thoughtful philanthropy. The OBBBA made several changes that affect how and how much you can deduct, so a mid-year review is especially worthwhile in 2026.

Strategy: Match your giving method to your tax situation. For most donors, the right approach depends on whether you itemize, how large your potential deduction is relative to the standard deduction, and whether you hold appreciated assets. Here are six techniques worth considering.

Here's the whole story:

1. Bunch multiple years of giving into one. The 2026 standard deduction is $16,100 for single filers and $32,200 for married filing jointly. If your annual charitable giving is modest—say, $5,000—it may not be enough on its own to push your itemized deductions above the standard deduction threshold. Bunching two or three years of planned giving into a single tax year can cross that threshold and generate a meaningful federal deduction, while you take the standard deduction in the other years.

2. Use a donor-advised fund. A donor-advised fund (DAF) is a charitable account held at a sponsoring organization. You contribute to the DAF in the year you want the deduction, receive the full deduction immediately, and then recommend grants to your favorite charities over time. DAFs are especially effective for bunching: contribute several years of giving in one shot, get the deduction now, and distribute to charities on your own schedule.

3. Donate appreciated stock instead of cash. If you have stock or mutual fund shares that have increased in value and held for more than one year, donating them directly to a charity or DAF is almost always more tax-efficient than selling and donating the proceeds. You avoid capital gains tax entirely and deduct the full fair market value. For a taxpayer in the 20% capital gains bracket donating $50,000 of stock with a $10,000 basis, the tax savings can exceed $8,000.

4. Make a qualified charitable distribution from your IRA. If you are age 70½ or older, you can make a qualified charitable distribution (QCD) directly from your IRA to a qualifying charity, up to $108,000 in 2026 (indexed for inflation). The QCD is excluded from your taxable income entirely—even if you don't itemize. For those subject to required minimum distributions, a QCD counts toward satisfying the RMD for the year.

5. Take advantage of the higher AGI limits. The OBBBA made permanent the rule allowing cash contributions to public charities to be deducted up to 60% of adjusted gross income, up from the pre-TCJA limit of 50%. For donors who give very generously in a single year, this expanded ceiling can absorb contributions that would otherwise have been limited and carried forward.

6. Consider a charitable remainder trust for larger gifts. If you are contemplating a significant gift of appreciated assets, a charitable remainder trust (CRT) allows you to transfer those assets, receive an income stream for life or a term of years, and claim a partial charitable deduction. CRTs can be powerful tools for donors with highly appreciated business interests or real estate.

Caution: The deduction for a donation to a donor-advised fund is taken in the year of the contribution—not the year the DAF makes a grant. Make sure your contribution clears by December 31.

Tip: For donations of $250 or more, you must obtain written acknowledgment from the charity before filing. For non-cash gifts over $500, Form 8283 must be attached. Appraisals are required for non-cash contributions exceeding $5,000.