When is the best time to give money to a favorite charity?   …. well … anytime! Charites need our support.  Ask the same question from a tax standpoint, and the answer changes.  The ability to deduct charitable donations is changing in 2026.

Let’s talk about how to get the best tax break—depending on your situation.
 
If You Take the Standard Deduction

• In 2025 there are no deductions for charitable contributions. 
• In 2026 single filers can deduct up to $1,000 and joint filers can deduct $2,000 

 The short answer: if you normally take the standard deduction, it may make sense to wait and send donations in January.

If You Itemize Deductions
Here’s where it gets more complicated.

• Starting in 2026, you can only deduct the portion of your charitable giving that exceeds 0.5% of your Adjusted Gross Income (AGI). For example: If your AGI is $200,000, the first $1,000 of charitable gifts doesn’t count. Anything above that may be deductible.
• The value of the deduction is capped at 35%, even if you’re in a higher tax bracket.  So if you’re in the 37% bracket, a $10,000 donation will reduce your tax bill by $3,500, not $3,700.

The short answer is to increase your donations this year. After that, consider ‘bunching’ your donations, giving every other year so you can maximize your deductions.  

If You Are Over The Age of 70
There’s an option here that’s especially tax friendly.
 
Consider a Qualified Charitable Distribution (QCD)—giving money directly from your IRA to a charity.

• The donation satisfies your required minimum distribution (RMD)
• The gift stays out of your taxable income.
• And it neatly sidesteps the new deduction limits altogether.

 The short answer: this is one of the most tax-efficient ways for retirees.
 
What matters most is that we continue to give.  The heart behind your charitable giving matters just as much as the tax outcome.
 
If you have any questions, please feel free to reach out.
 
Barbara
 
 
December 14, 2025

Source: https://www.irs.gov/charities-non-profits/charitable-organizations/charitable-contribution-deductions

Past performance is no guarantee of future results. Investing involves risk, including possible loss of principal. Investors should consider the investment objectives, risks, charges and expenses of the investment company carefully before investing. The prospectus and, if available, the summary prospectus contain this and other important information about the investment company. You can obtain a prospectus and summary prospectus from your financial representative. Read carefully before investing.