Tax season is a good time to review your charitable giving plans. If you already have a Fund at the DeKalb County Community Foundation, we welcome a conversation about your priorities for 2026 and beyond.

Even if a professional prepares your tax return, it helps to understand a few basic rules that affect charitable giving. Several tax law changes took effect on January 1, 2026. These updates may influence how and when you give.

Four Reminders to Discuss with your CPA:

1.) New rules for itemizing charitable deductions

• As in prior years, charitable contributions are deductible only if you itemize deductions on your tax return. If your itemized deductions do not exceed the standard deduction, your charitable gifts may not provide an additional tax benefit.
• Starting in 2026, a new threshold applies to charitable deductions for itemizers. Contributions are deductible only to the extent they exceed 0.5 percent of your adjusted gross income. For example, if your AGI is $200,000, the first $1,000 of charitable contributions will not be deductible. Only amounts above that level qualify, subject to existing limits.
• For some donors, this change may make it helpful to group charitable gifts into a single year. One option is contributing to a Donor Advised Fund at the Community Foundation, which allows you to make one larger gift and recommend grants to charities over time.
• Another change for 2026 is a cap on the value of itemized charitable deductions. The deduction is now limited to a 35 percent rate. This means taxpayers in the highest tax bracket may not receive a full deduction at their marginal rate. While charitable giving is rarely driven by taxes alone, this change may influence the timing or structure of larger gifts.
• There is also good news. The rule allowing cash gifts to qualified public charities, such as Funds at the Community Foundation, to be deducted up to 60 percent of AGI has been made permanent. Gifts of appreciated assets, such as stock or real estate, are generally deductible up to 30 percent of AGI.

2.) A new deduction for non-itemizers

• Beginning in 2026, taxpayers who do not itemize deductions may still claim a charitable deduction. Individuals may deduct up to $1,000, and married couples filing jointly may deduct up to $2,000 for cash gifts to qualifying charities.
• Because this deduction is taken before AGI is calculated, it can provide a meaningful benefit. The deduction applies only to cash gifts and does not include contributions to certain types of Funds, including Donor Advised Funds.
• Even so, this change may create new opportunities for households that previously saw no tax benefit from their charitable giving. It may also be helpful for younger family members who want to begin building charitable habits.

3.) Keep good records for charitable gifts

• Documentation rules remain an important part of charitable giving. Gifts of $250 or more require a written acknowledgment from the charity. The Community Foundation provides this documentation for gifts made to the Foundation or to a Fund.
• Non-cash gifts valued at $500 or more require IRS Form 8283. Donations of more than $5,000, such as real estate or closely held stock, generally require a qualified appraisal.
• Many donors who itemize deductions find it helpful to organize their giving through a Donor Advised Fund at the Community Foundation. In this case, you receive one tax receipt for your annual contribution to the Fund, even though grants may later support multiple charities. This can make recordkeeping much easier at tax time.

4.) Consider IRA gifts if you are age 70 ½ or older

• Qualified Charitable Distributions remain a valuable option for many donors. If you are age 70 ½ or older, you may direct funds from your IRA to certain charitable Funds at the Community Foundation or other public charities.
• For 2026, the annual QCD limit is $111,000 per taxpayer. These gifts are transferred directly from your IRA to charity and are not included in your taxable income. They can also count toward required minimum distributions.
• Because QCDs are not affected by the new deduction limits, they may be especially helpful under the updated tax rules. While QCDs cannot be directed to Donor Advised Funds, they can support Designated Funds, Field of Interest Funds, Community Impact Funds, or Scholarship Funds at the Community Foundation.

We are here to help

Charitable tax rules have always required thoughtful planning. With the updates in 2026, planning simply becomes a little more detailed.

We encourage you to share this information with your CPA or bring it to your next meeting with your professional advisors. Our team at the DeKalb County Community Foundation is always happy to work alongside your tax, legal, and financial advisors to help you structure giving that reflects both your charitable goals and your overall financial plan.

We invite you to connect with us to explore options that best fit your goals. To learn more or begin the conversation, contact Executive Director Dan Templin at 815-748-5383 or dan@dekalbccf.org.

Philanthropy comes in many forms, and every act of generosity makes a difference. In these Generosity CORNER articles, we’ll share ideas for giving, smart strategies for maximizing your charitable impact, and tips on tax-wise giving, legacy planning, and family philanthropy. Whether you’re a charitable estate planning advisor, a longtime donor, or just beginning your giving journey, this space is for you. Inform and inspire!

Together, we can make a lasting difference—one generous act at a time!  Learn more about Generosity Across Generations.