Charitable Contribution Planning in 2026

As tax season progresses, now is an excellent time to revisit charitable giving strategies with your clients — especially those looking to maximize their tax benefits while supporting organizations they care about. Thoughtful planning around charitable contributions can make a real difference in a taxpayer’s overall tax outcome, and as preparers you play a key role in guiding these decisions with informed planning advice.

Below are practical tips and insights you can put to work right now for 2026 tax planning.

📌 Standard Deductions vs. Itemizing

The first thing to determine is whether a client benefits more from itemizing deductions or taking the standard deduction.

In recent years, standard deductions have increased, which means many taxpayers do not reach the level where itemizing makes sense. However, clients who regularly give generously — especially high-income individuals — may still exceed the standard deduction when itemizing and capture more advantage from their charitable gifts.

As tax pros, ensure you:

• Run the numbers both ways — itemized vs standard — on client returns

• Review year-end giving strategies well before December

  
  

This simple comparison can lead to significant tax savings for the client.

🎯 Bunching: Maximize Deductions Every Other Year

One effective strategy to help clients maximize their deductions is bunching — concentrating charitable gifts into alternating years rather than spreading them evenly across every year.

Here’s how it works:

• In year one, the client donates several years’ worth of expected gifts.

• In year two, they take the standard deduction.

• The result can be a larger overall tax benefit over a two-year period.

  
  

Bunching works particularly well for taxpayers whose annual donations fall just below the threshold needed to itemize.

🏦 Donor-Advised Funds (DAFs): Flexible Giving With Tax Benefits

Donor-Advised Funds (DAFs) continue to be a powerful tool for charitable planning. Donors can make a large contribution to a DAF in one year — claiming the full tax deduction upfront — and then recommend grants to qualified charities over time.

Benefits of DAFs include:

✔ Immediate income tax deduction in the year of contribution

✔ Flexibility in timing grant distributions

✔ Ease of recordkeeping and administration

✔ Ability to involve family members in giving decisions

For clients who want tax benefits now and giving flexibility later, DAFs are worth discussing.

📈 Appreciated Assets: Give More, Pay Less

Encourage clients with significant investment gains to consider donating appreciated assets such as stocks, mutual funds, or ETFs that they’ve held for more than one year.

Why this matters:

• They receive a deduction for the fair market value of the asset.

• They avoid capital gains tax on the appreciation.

  
  

This strategy can be more tax-efficient than selling the asset and donating cash.

🧠 Qualified Charitable Distributions (QCDs): A Strategy for Older Clients

For clients age 70½ or older, Qualified Charitable Distributions (QCDs) from an IRA can be a smart move.

QCD basics:

• Up to $100,000 per year can be distributed directly to qualified charities.

• The amount counts toward the client’s required minimum distribution (RMD).

• The distribution is excluded from taxable income.

  
  

This strategy can be especially beneficial for clients who do not benefit from itemizing but still want to support charities while reducing taxable income.

📊 Planning Conversations Matter

As tax professionals, we can help clients look beyond simply completing a return and empower them to plan their giving intentionally:

✔ Do they give annually — or sporadically?

✔ Are they maximizing the tax benefit of their gifts?

✔ Would a DAF or QCD strategy make sense this year?

✔ Have they documented gifts properly for substantiation?

Discussing these questions now — rather than at the last minute — allows clients to make thoughtful, tax-efficient decisions.

🧾 Final Thoughts

Charitable giving is both a deeply personal choice and a meaningful tax planning opportunity. When planned intentionally, it can help clients fulfill their philanthropic goals and reduce their tax burden.

As tax professionals, timely conversations on giving strategies can enhance client satisfaction and build long-term trust. Whether you’re preparing returns today or planning ahead for 2026 and beyond, charitable contribution planning is a valuable service you can provide to every client with giving in their financial picture.

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Disclaimer: This article is for informational and educational purposes only and does not constitute legal tax advice. Advanced Tax Solutions is not liable or responsible for any damages resulting from or related to your use of this information. It is your responsibility to refer to official IRS documentation for information regarding any tax laws or tax information shown here.