2026 Charitable Giving Tax Changes: What Donors Need to Know

Charitable giving usually starts with purpose: supporting an organization you believe in, strengthening your community, or making an impact that reflects your family’s values.

But thoughtful giving also has a practical side.

Beginning in 2026, a change to the charitable deduction may provide a new tax benefit for some taxpayers who do not itemize. At the same time, the IRS is reminding donors that receiving a deduction depends on more than simply making a gift.

For individuals and families who give regularly, the takeaway is simple: give with intention, and document with care.

What’s Changing for Charitable Giving in 2026?

Generally, taxpayers have needed to itemize deductions on Schedule A to claim a federal income tax deduction for charitable contributions.

Starting in 2026, individuals who itemize deductions will be subject to a new limitation on charitable contributions. Under the new rules, charitable deductions will only be allowed to the extent total annual contributions exceed 0.5% of Adjusted Gross Income (AGI).

In practical terms, the first 0.5% of AGI that is donated to charity will not generate a tax deduction. For example, if a taxpayer has AGI of $500,000, the first $2,500 of charitable contributions would not be deductible. If total charitable gifts for the year were $100,000, the deductible amount would be reduced to $97,500.

Beginning with tax year 2026, taxpayers who do not itemize may be able to deduct certain cash contributions to qualified charitable organizations—up to $1,000 for individual filers and $2,000 for married couples filing jointly.

That could create a tax benefit for some households whose charitable contributions previously did not result in a deduction because they claimed the standard deduction.

There is an important distinction, however: not every charitable gift is deductible.

Contributions generally need to be made to qualified organizations. Gifts made directly to individuals, including contributions to personal fundraising campaigns, are generally not deductible.

If a charitable deduction is part of your plan, consider confirming the organization’s eligibility before making your gift. The IRS Tax Exempt Organization Search tool can help.

Good Giving Requires Good Records

The organizations you support may be easy to remember. The dates, dollar amounts, and documentation associated with each gift are easier to forget.

Rather than trying to reconstruct a year of charitable giving at tax time, keep records as you give.

For cash contributions, retain a bank record or written acknowledgment from the charitable organization showing:

• The organization’s name
• The date of the contribution
• The amount donated

For contributions of $250 or more, whether cash or property, a written acknowledgment from the charitable organization is generally required before a deduction can be claimed.

In other words: save the documentation when you make the gift, not when you prepare your tax return.

Giving More Than Cash? Plan Ahead

For some families, charitable giving extends beyond cash.

Donations of property and other valuable assets can involve additional documentation and reporting requirements. Depending on the type and value of the contribution, taxpayers may need to file Form 8283, Noncash Charitable Contributions, or obtain a qualified appraisal.

The more complex the gift, the more valuable it can be to plan before the transfer takes place.

Before making a significant charitable contribution, consider three questions:

• Is the organization qualified?
• What documentation will I need?
• Should I coordinate the gift with my financial advisor and tax professional first?

A little preparation can help ensure a well-intentioned gift is also well executed.

Think Beyond the Deduction

The 2026 tax change provides a timely reason to revisit your charitable giving. But taxes are only one part of a much larger conversation.

What do you want your giving to accomplish? Which causes matter most to you and your family? And does the way you give reflect those priorities?

Those questions can turn a series of individual donations into a more intentional approach to philanthropy.

Whether you make recurring annual contributions or are thinking about a larger family legacy, thoughtful philanthropy considers both the purpose behind a gift and the process for carrying it out.

At Heritage, we believe charitable giving is ultimately about connecting your resources with what matters most to you. Bringing philanthropy into the broader conversation around your financial life can help you give with greater intention today while thoughtfully considering the legacy you hope to create for the future.