As the predictable pace of summer settles in, we can all recharge and review our charitable
goals before the fireweed fades. Last year’s comprehensive legislation introduced a few new tax considerations for tax-wise donors.
To start, the 2026 standard deduction increased to $16,100 for single filers and $32,200
for couples filing jointly. In addition, depending on income, some individuals over 65 may receive an additional deduction of up to $6,000. All to say, most of us will not itemize in 2026.
For itemizers, charitable deductions must exceed a 0.5% adjusted gross income floor, and top-bracket taxpayers face a 35% cap. For non-itemizers, charitable deductions are capped at $1,000 ($2,000 for couples). Come spring, we will all mutter to our Form 1040, “Wait, where did the rest of my charitable deductions go?”
Of course, if you are over 70½, the qualified charitable distribution is still the bee’s knees for tax-wise giving. But if you are younger, need to manage capital gains, or want to contribute to your donor-advised fund, consider giving appreciated securities. Charitable gifts of appreciated stock offer a tax twofer: you can still claim the applicable deduction, and you completely avoid capital gains tax.
Here is another nifty trick: You can use the cash you planned to donate to repurchase
stocks. This resets your basis while keeping your portfolio intact. I know a few donors who do this every year. They call their broker to ask which stocks appreciated the most or which stocks need to be cleaned out. Then, they donate those stocks to their favorite charities and use their charitable cash budget to buy similar or better stocks.
By planning today, you can avoid capital gains taxes, meet your deduction, and maximize your impact with the charities you value most.
Harry Need, CFRE, is a philanthropic advisor at the University of Alaska Foundation. Nothing in this article should be taken as tax or investment advice. For your specific circumstances, please consult with your professional advisors.
