Updated November 2026 · VG CPA PC advisors
Give appreciated assets
Donating stock or other investments held more than a year lets you deduct full fair market value and avoid capital gains tax on the appreciation. Gifts of appreciated property to public charities are generally deductible up to 30% of adjusted gross income, and cash gifts up to 60%, with five-year carryforwards.
Gifts of non-cash property over $5,000 generally require a qualified appraisal, except publicly traded securities.
Donor-advised funds and bunching
A donor-advised fund lets you take the deduction in the year you contribute and recommend grants to charities over time. Bunching several years of gifts into one year can push you above the standard deduction, so you itemize that year and take the standard deduction in others.
This works especially well in a high-income year, such as the year you sell a business.
Retirees and the 2026 rules
People 70½ and older can make qualified charitable distributions of over $100,000 a year (indexed) directly from IRAs. QCDs count toward required minimum distributions and are excluded from income, which beats a deduction for most retirees.
Starting in 2026, itemizers can deduct charitable gifts only to the extent they exceed 0.5% of adjusted gross income, and the deduction benefit is capped at 35% for top-bracket taxpayers, while non-itemizers can deduct up to $1,000 ($2,000 joint) of cash gifts. Accelerating large gifts into 2025 or using QCDs can help.