Smart Charitable Giving for 2025–2026: Simple Ways to Give and Save on Taxes

Giving to causes you love feels good. It can also be smart for your tax plan—if you set it up the right way. In this post, I’ll walk through simple strategies that many Gen X and Boomer families use to support their church, local nonprofits, or favorite national charities. The goal is to make your giving clear, easy, and tax-aware—without the jargon.

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The big picture: more people take the standard deduction - You can still benefit in 2026

Today, most households do not itemize deductions. That means many folks don’t get a tax break for normal, small donations. There’s good news coming, though. Starting in 2026, taxpayers who don’t itemize may again deduct a modest amount of cash gifts—up to $2,000 if married filing jointly and $1,000 if single. Keep simple records of your gifts so you’re ready. Charitable Donations Audio_otte…

If you’re 70½ or older: QCDs can be a game changer

A Qualified Charitable Distribution (QCD) lets you send money directly from your IRA to a charity. When you do this, that amount doesn’t show up as income on your tax return. It’s not a “deduction”—it may be even better because it can keep your income lower for other tax items (like Medicare brackets).

A QCD can also count toward your Required Minimum Distribution (RMD). If you don’t need all of your RMD for spending, using a QCD can reduce your tax bill while supporting your cause. Key rules in plain English:

• You must be 70½ or older.
• You can give up to about $100,000 per year this way.
• The money must go straight from the IRA custodian to the charity—not through your bank account.
• Don’t wait until the last week of December; custodians use forms and get busy. Aim to start in late Q3 or early

Easy example: If you usually put $20 in the plate each week, consider one QCD for $1,000 from your IRA to your church. You’ve given the same $1,000 you planned—but now you may also get that tax benefit from keeping income lower. Charitable Donations Audio_otte…

If you still itemize: know your limits and the “floor”

Some families still itemize due to higher mortgage interest, state/local taxes, or large gifts. If that’s you:

• You can generally deduct cash gifts up to 60% of Adjusted Gross Income (AGI).
• There’s also a floor: only the portion of your annual gifts that exceeds 0.5% of AGI counts toward the deduction.
• Very high earners may see the value of the deduction reduced. Example: If your AGI is $100,000 and you donate $1,000 cash, only $500 (the amount above 0.5% of AGI) may be deductible. Charitable Donations Audio_otte…

Gifting stock or mutual fund shares: avoid capital gains

Do you own investments that have grown a lot over time? Instead of selling and giving cash, you can donate appreciated shares directly to a qualified charity. Why this helps:

• You may get a deduction for the full fair market value of the shares (subject to the usual AGI limits).
• You can avoid capital gains tax on the growth.

Example: You own 100 shares now worth $20,000, but you only paid $1,000 years ago. If you sell first, you could owe capital gains tax on $19,000 of growth. If you donate the shares, you support the charity and may skip the capital gains tax entirely. This is often a great fit for capital campaigns and year-end giving. Coordinate with your advisor, the charity, and your custodian to get the transfer done on time—again, starting in late Q3 or early Q4 is smart. Charitable Donations Audio_otte…

Simple steps to make your giving smooth

1. Make a short list of causes that mean the most to you—local first is okay!
2. Pick your strategy: cash, QCD (if 70½+), or appreciated stock.
3. Set a timeline: Mark your calendar for September/October to start paperwork.
4. Keep proof: Save receipts and confirmations for your records.
5. Review yearly: Life changes. So should your giving plan.

Why this matters in the Ohio Valley

In our communities, the churches, schools, and nonprofits do real, hands-on work—things you can see. Smart planning helps you send more to the mission and less to taxes, which means greater impact right here at home. That’s a win-win.

Let us help

Charitable giving is about meaning, not just math. The right plan lines up your heart and your wallet. If you want help coordinating cash gifts, QCDs, or stock donations—and making sure it all fits your broader retirement and tax plan—we’re here to guide you.