Charitable Giving Tax Rules for 2026

December is the busiest month for charitable giving, and in 2026 the tax rules changed in ways that affect how much of a gift you can deduct. A new floor reduces the benefit for itemizers, a new deduction helps people who take the standard deduction, and the usual tools, appreciated stock, donor-advised funds and qualified charitable distributions, still work. This guide summarizes the rules, with the main points checked against IRS publications listed at the bottom. It is educational and not tax advice. The bunching calculator shows how the rules interact with your numbers.

Who can deduct what

A gift is deductible only if it goes to a qualified organization, generally a 501(c)(3) public charity, a church, a school or a government unit. You can check an organization on the IRS Tax Exempt Organization Search tool. Gifts to individuals, crowdfunding campaigns for a person, political candidates and most foreign charities are not deductible. You cannot deduct the value of your time, but you can deduct certain unreimbursed costs of volunteering, such as supplies, and mileage at the statutory rate of 14 cents a mile.

The 2026 changes

A 0.5% floor for itemizers

Starting with 2026 returns, people who itemize can deduct charitable contributions only to the extent they exceed 0.5% of their adjusted gross income. If your AGI is $120,000, the first $600 of gifts does not count. If you give $5,000, you deduct $4,400. The amount you cannot deduct because of the floor may carry forward under the rules the IRS publishes, so keep records. For most generous donors the floor is a small reduction, but for someone who gives only a few hundred dollars it can eliminate the deduction.

A deduction for non-itemizers

The tax law also added a permanent deduction for people who take the standard deduction: up to $1,000 for single filers and $2,000 for married couples filing jointly, for cash gifts to qualified public charities. Gifts to donor-advised funds and to supporting organizations do not qualify, and neither does property such as clothing or stock. Because this deduction is available only if you do not itemize, itemizers cannot also claim it.

A limit on the value for top earners

For taxpayers in the 37% bracket, the tax benefit of itemized deductions is limited so that it is worth 35 cents on the dollar rather than 37 cents. Fewer than a few percent of taxpayers are affected.

Limits on how much you can deduct

• Cash gifts to public charities: up to 60% of AGI.
• Gifts of long-term appreciated property (such as stock held more than a year): up to 30% of AGI, valued at fair market value.
• Gifts to private non-operating foundations: lower limits, generally 30% for cash and 20% for property.

Amounts above the limit can be carried forward for up to five years.

Giving appreciated stock

If you own stock or fund shares that have gone up in value and you have held them for more than a year, giving the shares directly to a charity can be better than selling and donating cash. You deduct the full market value, and no one pays the capital gains tax. For example, shares bought for $4,000 and now worth $10,000 would produce a $6,000 gain if sold; a 15% rate would mean $900 of tax. Donating the shares gets the full $10,000 deduction and avoids the $900. Do not give shares that have lost value; sell them, take the loss and give the cash instead. The capital gains guide explains the rates.

Donor-advised funds and bunching

A donor-advised fund (DAF) is an account at a sponsoring charity. You contribute, receive an immediate deduction if you itemize, and then recommend grants over time. Because the deduction is taken in the year of the contribution, a DAF allows bunching: giving two or three years’ worth of gifts in one year so that your itemized total beats the standard deduction, then taking the standard deduction in other years. Under the 2026 rules, bunching has a new wrinkle. In a year when you take the standard deduction, you can deduct up to $1,000 of direct cash gifts ($2,000 joint), and that benefit is lost in the years you itemize, so the gain from bunching is smaller than before. Run both scenarios in the calculator before committing. A DAF contribution is irrevocable, so only give what you are sure you want to give away.

Qualified charitable distributions

If you are 70½ or older, you can direct up to $111,000 (2026 limit) per year from your IRA to a charity as a qualified charitable distribution (QCD). The amount is excluded from your income, and if you are old enough to have a required minimum distribution, it counts toward it. A QCD cannot go to a donor-advised fund or private foundation. It must be paid directly from the IRA trustee to the charity, so ask your custodian for a check payable to the charity well before December 31. QCDs cannot be made from a 401(k) unless you first roll the money to an IRA. A one-time QCD of up to $55,000 (2026 limit) is also allowed to a charitable gift annuity or charitable remainder trust. A QCD is not deductible, since you never include the income, so it avoids both the 0.5% floor and the standard-deduction issue. The RMD guide covers the details.

Rules for records

• Any cash gift requires a bank record or a written receipt from the charity.
• A gift of $250 or more needs a written acknowledgment from the charity, which says whether you received goods or services.
• Non-cash gifts above $500 require Form 8283; above $5,000 generally requires a qualified appraisal (publicly traded securities are exempt from the appraisal).
• If you receive something of value (a dinner, a gift), your deduction is reduced by its fair market value.

Timing a year-end gift

A gift counts in the year it is made. A check counts on the date you mail it, as long as it is honored, and a credit card gift counts when you charge it, even if you pay the card bill in January. Stock transfers can take several days, so start in early December. Online gifts on December 31 are usually fine, but donating on the last day leaves no room for errors.

Making a plan

1. Estimate your AGI and decide whether you will itemize.
2. If you will clearly itemize, consider giving appreciated stock and check the 0.5% floor.
3. If you will clearly take the standard deduction, make direct cash gifts up to $1,000 ($2,000 joint) and consider giving more in alternating years.
4. If you are 70½ or older, use a QCD for amounts you would give anyway.
5. Keep receipts and acknowledgments in one folder.