There are several 2026 Tax-law changes that may have an impact on your donations and giving intentions. Our advice to “talk to your financial advisor about whether various charitable giving options are right for you” has never been more important. Here are just a few tax-law changes and topics you may want to discuss with your advisors.
Charitable deductions for non-itemizers!
The 2017 Tax Cuts and Jobs Act (TCJA) increased the standard deduction to the point where—for many people—there was no incentive to itemize their taxes to qualify for charitable contribution deductions. That has changed for 2026. If you are a non-itemizer, you will be able to claim a charitable deduction—up to $1,000 for single filers and $2,000 for married filing jointly—for cash donations, such as by check or credit card.
For itemizers in higher tax brackets, there are several new changes, including the state and local tax (SALT) deduction increase. Also, total donations must exceed 0.5% of your adjusted gross income (AGI), and those in the top tax bracket of 37% are also limited to a 35% deduction. You will want to discuss this with your financial/tax advisor if you plan to itemize in 2026.
Donor-advised funds
Donor-advised Funds (DAFs), while already very popular, are projected to grow exponentially in the next few years. Large irrevocable tax-deductible contributions of highly appreciated stock, closely held stock, and sometimes, personal property, are often used to establish a DAF. Then smaller donations in the form of DAF grants can be recommended to the sponsoring DAF institution such as a community foundation or charitable foundation of a commercial investment company to be paid out over time to support charitable organizations.
From 2023-2025, Donor-advised Fund gifts increased
165%
We are already seeing an increase in the number of DAF donations to the Sisters of the Holy Cross. If you have not yet explored the potential benefits of a DAF, talk to your advisor to see if it makes sense. Not all DAFs are created equal and rules and fees vary. So, do your homework to find one that is right for you.
Qualified charitable distributions
The rules for Qualified Charitable Distributions (QCDs) from traditional Individual Retirement Accounts (IRAs) are unchanged, but the total amount that may be given to charity is indexed for inflation. So, in 2026 the maximum aggregate amount rises to $111,000 for each individual. You must be at least 70½ years old and the QCD payment must be made on your behalf by the trustee directly to the charity.
If you are of the age where you need to take a Required Minimum Distribution and do not need the taxable income, a QCD can satisfy that requirement — if you do it first. So be careful with timing. Talk to your advisor about how much to give and when to make a QCD for your circumstances. And please tell the trustee to indicate who it is from and that it is an IRA QCD. We need that information to properly acknowledge your gift for your tax records.
From 2023–2025, IRA Donors gifts increased
37%
Start discussions now
Now is the perfect time to start discussions with your advisors. While this update is offered to get the conversations started, please understand it should not be regarded as tax or financial advice. We’re happy to talk with you, but always talk to your professional advisors, too.
Keep this important information on hand when you talk to your financial and/or tax advisors.
Legal name: Sisters of the Holy Cross, Inc.
Tax ID/EIN: 35-0868159
Address:
Sisters of the Holy Cross
Development Office
200 Rosary Hall
Notre Dame, IN 46556-5053
Contact: Leslie, Planned Giving and Information Specialist
Email: development@cscsisters.org
Phone: (574) 284-5641
Looking for More?
Sisters of the Holy Cross have other options that could be a better fit for your needs.
Before making a decision, please talk to your financial advisor about whether various charitable giving options are right for you!