Charitable Giving Strategies for the Rest of 2026
How to maximize charitable giving tax efficiency in the second half of 2026 using donor-advised funds, QCDs, and appreciated securities.
If you give to the causes you care about, you should also be giving with a strategy. The right approach can increase the impact of every dollar you donate while reducing your tax bill — but it requires planning before December.
At Windward, charitable giving strategy is one of the areas where our CPA heritage adds the most value. Here is what we are discussing with clients as we move into the second half of the year.
Why Most Charitable Giving Is Less Tax-Efficient Than It Could Be
Since the 2017 Tax Cuts and Jobs Act nearly doubled the standard deduction, fewer households itemize. That means cash donations — even generous ones — often produce no additional tax benefit beyond the standard deduction. Many people are giving just as generously as before, but effectively receiving no tax benefit for it.
The good news: several strategies deliver significant tax advantages regardless of whether you itemize.
Strategy 1: Qualified Charitable Distributions (QCDs)
If you are 70½ or older, you can transfer up to $111,000 per year (2026 limit, indexed for inflation) directly from your IRA to a qualifying charity. This distribution counts toward your RMD and is excluded from your adjusted gross income entirely.
The benefit applies whether or not you itemize — and because it reduces your AGI (not just your taxable income), it can also lower your Medicare premiums and reduce the percentage of your Social Security that is taxable.
Strategy 2: Donor-Advised Funds (DAFs)
A DAF lets you make an irrevocable contribution, receive an immediate tax deduction, invest the assets for potential growth, and distribute grants to your chosen charities on your own timeline. DAFs are especially powerful when funded with long-term appreciated securities — you avoid capital gains tax and receive a deduction for the full fair market value.
If you have a high-income year coming — a large distribution, a business sale, or significant capital gains — making a larger DAF contribution now can capture a larger deduction when it matters most.
Strategy 3: Bunching Contributions
Instead of giving $12,000 per year without exceeding the standard deduction, consider giving $36,000 every three years into a DAF and itemize in the bunching year. Take the standard deduction in the off years. Same total generosity — larger tax benefit.
Strategy 4: Donating Appreciated Securities
Donating appreciated stock or mutual fund shares directly to charity (or to a DAF) avoids capital gains tax on the appreciation and generates a deduction for the full fair market value. Two tax benefits in one move — and almost always more efficient than selling first and donating cash.
The Windward Approach
Charitable giving is not just about generosity. It is about coordinating your giving with your income, your RMDs, your tax bracket, and your estate goals. Our CPA heritage means we look at how all these pieces work together — and we build a giving strategy that reflects both your values and your financial plan.
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