As the end of the year approaches, you may be thinking about your charitable giving plans alongside other financial and tax planning decisions. And with several new charitable tax provisions taking effect in 2026, it's especially important to consider not just how much you want to give, but also when and how you make your gifts.
A recent CNBC article about year-end tax strategies offers a timely reminder to review your financial picture before December 31. Charitable giving can be an important part of that process, particularly when you match your philanthropic goals with the right assets and giving strategies.
Here are five examples of how a simple change in approach might help you accomplish more with your charitable dollars.
If you're thinking, "I want to give to charity, but I usually take the standard deduction," consider making a qualifying cash gift.
Beginning in 2026, taxpayers who don't itemize deductions may be eligible to deduct up to $1,000 in qualifying cash contributions, or $2,000 for married couples filing jointly. This creates a new opportunity to receive a federal income tax benefit for gifts to eligible charities, even without itemizing. Contributions to donor-advised funds do not qualify for this particular deduction, but the community foundation can help you identify eligible charitable organizations and giving opportunities that align with your interests.
If you're thinking, "I'd like to make a significant charitable gift, but I'm not sure which organizations to support yet," consider a donor-advised fund.
Perhaps you've experienced an unusually high-income year or simply want to set aside a meaningful amount for charity. A donor-advised fund at the community foundation lets you make an irrevocable charitable contribution now, potentially receive a tax deduction in the year of the gift, and recommend grants to qualified charities over time. This approach can be especially useful if you're considering combining several years of charitable giving into one year for tax planning purposes, particularly in light of the new rule limiting itemized charitable deductions to contributions exceeding 0.5% of adjusted gross income. Meanwhile, you can take more time to decide which causes to support.
If you're thinking, "I want to make a gift, but I don't want to sell my investments," consider giving appreciated stock.
Suppose you've owned shares of a publicly traded company for several years and they've increased substantially in value. Rather than selling the shares and donating the proceeds, you might consider transferring the stock directly to a charitable fund at the community foundation. Depending on your circumstances, donating long-term appreciated securities directly to charity may allow you to avoid recognizing capital gains on the appreciation, potentially avoid other tax consequences associated with selling the securities, and qualify for a charitable income tax deduction. The community foundation can work with you and your advisors to coordinate the transfer and help you support your favorite charitable causes.
If you're thinking, "I have to take money out of my IRA anyway," consider a qualified charitable distribution.
If you're age 70½ or older, you may be eligible to make a qualified charitable distribution, or QCD, directly from your IRA to an eligible charity. A QCD is generally excluded from taxable income and can count toward your required minimum distribution if you have one. Although QCDs cannot be made to donor-advised funds, the community foundation can help you explore other eligible funds and charitable giving options. This strategy may be particularly attractive if you want to support charity without increasing your adjusted gross income through an IRA withdrawal.
If you're thinking, "I want my charitable giving to continue long after I'm gone," consider a gift through your estate plan.
You don't necessarily have to make a substantial gift during your lifetime to establish a lasting charitable legacy. For example, you might name the community foundation as a beneficiary of a retirement account and direct the gift to a particular charitable fund, include a charitable bequest in your will or trust, or establish an endowment to support a favorite cause over time. The community foundation can help you explore arrangements that reflect your charitable priorities while working with your legal and financial advisors to ensure your plans are properly documented.
Of course, these are just a few examples. Your personal financial circumstances, charitable interests, and long-term goals will determine which approaches make the most sense.
The important thing is to recognize that charitable giving doesn't have to follow a one-size-fits-all formula. Whether you're making a modest annual contribution, considering a gift of appreciated assets, or planning a charitable legacy, there may be opportunities to structure your giving in ways that support both your financial goals and the causes you care about.
The community foundation is always happy to help you explore the possibilities. Before the year comes to a close, consider reaching out to discuss what you're thinking about accomplishing through charitable giving. Together with your tax, legal, and financial advisors, we can help you turn those intentions into a thoughtful plan.