2026 Charitable giving tax changes: What financial advisors should know

Charitable giving strategy is changing in 2026, and for financial advisors, estate planning attorneys, and CPAs, this is the year to talk about philanthropy earlier and more often.

Several 2026 tax law changes may affect how much clients can deduct, whether itemizing still makes sense, and which charitable tools deliver the greatest tax efficiency. That’s why charitable giving belongs in ongoing financial planning conversations—not as a last-minute year-end add-on.

As the philanthropic center of gravity for Atlanta, we help advisors and their clients turn generosity into lasting local impact. When charitable planning is done well, your clients’ giving can support the causes they care about while doing more for the Greater Atlanta community.

Below are the key charitable giving considerations for 2026 and beyond.

Key 2026 Charitable Giving Updates for Advisors:
In 2026, charitable giving planning may change due to:

• Higher standard deductions, which means fewer clients may itemize.
• New limits on itemized charitable deductions, which means a deduction “floor” and a cap for high earners.
• Higher QCD limits for retirees giving from IRAs.
• A new charitable deduction for non-itemizers (cash gifts only).

1) Higher Standard Deduction in 2026 May Reduce Itemized Giving Benefits

Many clients will take the standard deduction in 2026 instead of itemizing, which can change how charitable donations affect their tax bill.

For tax year 2026, the standard deduction increases to:

• $16,100 for single filers
• $24,150 for heads of household
• $32,200 for married couples filing jointly

What advisors can do

If a client’s giving is consistent year-to-year, this may be a good time to discuss charitable giving “bunching.” Bunching means grouping multiple years of charitable giving into one year to potentially exceed the standard deduction and itemize.

2) New 2026 Limits on Itemized Charitable Deductions May Affect High-Income Clients

Starting in 2026, taxpayers who itemize may see reduced tax leverage from charitable contributions due to two major changes:

A new “floor” for charitable deductions

Taxpayers can deduct charitable contributions only above 0.5% of adjusted gross income (AGI).
In simple terms: the first 0.5% of AGI in donations may not generate a charitable deduction.

A new “cap” for top earners

A new cap limits the value of itemized charitable deductions for some higher-income taxpayers to 35%, even for clients in the 37% bracket.

What advisors can do

For generous clients, these changes reinforce the importance of:

• thoughtful gift timing
• reviewing strategy annually
• choosing the right giving tools for the client’s tax and legacy goals
  

3) Qualified Charitable Distributions (QCDs) Remain One of the Most Tax-Efficient Giving Tools

Qualified Charitable Distributions (QCDs) continue to be a powerful charitable giving strategy for retirees.

In 2026, inflation adjustments increase:

• the per-taxpayer QCD limit to $111,000
• the one-time QCD limit to a split-interest vehicle to $55,000

Clients age 70½ or older can continue using QCDs to give directly from an IRA to charity without the distribution being included in taxable income. QCDs may also help reduce AGI and satisfy required minimum distributions (RMDs).

Advisor note: QCDs may support certain qualified charitable funds at a community foundation (such as designated or field-of-interest funds), though not donor-advised funds.

4) New Charitable Deduction for Non-Itemizers Starts in 2026

Beginning in tax year 2026, some taxpayers who do not itemize may still qualify for a charitable deduction for cash gifts to qualified charities:

• Up to $1,000 for single filers
• Up to $2,000 for joint filers

This deduction does not include gifts of stock or other appreciated assets, and certain giving vehicles are excluded—but it may encourage new donors to begin giving.

What advisors can do

This can be an especially useful provision to mention to:

• clients with adult children beginning to donate
• families looking to involve the next generation
  donors who want simple ways to give locally

Why Local Philanthropy Matters in 2026 (and Beyond)

Tax planning is important—but most clients don’t give only for tax reasons. They give because they want their resources to reflect their values and create real change.

That’s why working with the Community Foundation for Greater Atlanta can be so valuable. As the philanthropic center of gravity for Atlanta, CFGA helps advisors and clients connect charitable goals to real needs across Greater Atlanta—so giving does more locally and builds impact that lasts.

How the Community Foundation for Greater Atlanta Supports Advisors

CFGA partners with financial advisors, estate planning attorneys, and CPAs to help clients:

• incorporate charitable giving into financial plans
• align giving strategies with tax and estate planning goals
• explore charitable tools that fit their situation
• increase charitable impact in the Greater Atlanta region

We look forward to partnering with you in 2026 and beyond.