2026 Charitable Gift Planning Tax Law Highlights
Make the Most of Your Giving in 2026
There are a few new rules in 2026 that donors should be aware of related to charitable giving. These rules should be carefully reviewed by donors and their advisors as they impact non-itemizers and itemizers alike.
IRAs AND Charitable Giving in 2026
- An individual over age 70½ is permitted to make a direct transfer from his or her IRA custodian to a qualified charity (QCD) up to $111,000 in 2026.
2026 New Charitable Tax Deduction for the 90% of People Taking the Standard Deduction
- Donors taking the standard deduction, you now have a brand-new tax deduction that can help you stretch your giving! Taxpayers who take the standard deduction on their tax return are now allowed an above-the-line charitable deduction for a gift of cash to a qualified nonprofit, like Amazing Place, up to $1,000 for a single taxpayer or $2,000 for a married couple filing jointly starting in 2026.
- The new above-the-line deduction is not available for gifts to DAFs. The deduction applies only to direct cash or credit card donations.
- This non-itemizer deduction may be taken in addition to the standard deduction and enhanced senior deductions.
2026 Changes for Itemizing Taxpayers
- Taxpayers who itemize their deductions for tax purposes have two big changes in 2026. Taxpayers are encouraged to speak with a tax professional to understand how the tax changes may impact their 2026 tax return.
- There is a new 0.5% floor on charitable deductions for gifts beginning in 2026. The taxpayer will not be able to deduct charitable gifts for the first 0.5% of the contribution base. The contribution base for most taxpayers is their adjusted gross income (AGI).
- In addition to the 0.5% charitable floor, there is a limitation on itemized deductions in 2026. This limit will impact high income earners because for taxpayers in the 37% bracket, the maximum savings for itemized deductions will be capped at 35%. To apply this limitation, deductions are reduced by 2/37 of the lesser of: the total itemized deductions or the portion of income above the 37% threshold.
2026 IRA Updates for QCD Age, RMD Age, and Annual Limit
- A qualified charitable distribution (QCD) allows you to roll funds directly from your IRA to a qualified charity like Amazing Place. Those amounts can be used to satisfy your required minimum distributions (RMDs) for the year and the amount donated is excluded from your taxable income. You are not required to itemize to do this.
- Because QCDs transfer money directly from your IRA to a charity, they bypass your AGI entirely, allowing you to sidestep the new 0.5% itemization floor and the 35% deduction cap.
- The age when a current gift (QCD) from an IRA is allowed remains at 70½ in 2026. At 70½, you can make annual charitable gifts through your IRA. At your direction, your IRA custodian will transfer the gift you designate directly from your IRA to a qualified charity. This is known as a Qualified Charitable Distribution, or QCD.
- In 2026 the age at which you are REQUIRED to take a Required Minimum Distribution (RMD) remains at 73. The RMD age will increase again in 2033 to age 75. Individuals who are currently taking RMDs will continue to take a distribution each year based on their age.
- The annual IRA QCD limit increased to $111,000 in 2026.
For More Information Contact
Matt Pohren, MPA
Development Director
mpohren@amazingplacehouston.orgIf you are considering making a Tax Smart or Planned/Legacy gift to Amazing Place, please contact us to discuss your intentions. We want to make sure your goals and intentions are understood and documented. We also want to thank you for your generous support.
Houston’s Amazing Place | DBA: Amazing Place | Tax ID 76-0604478