Last year, TPF shared information about the federal tax changes affecting charitable giving beginning in 2026. As we approach the first year-end under these new rules, donors now have an opportunity to look beyond the provisions themselves and consider how they affect actual year-end giving decisions.
There have not been major new federal tax-law changes that alter the charitable giving framework introduced for 2026. What has become increasingly important, however, is understanding how the new rules interact with a donor's income, investment portfolio and longer-term charitable plans.
For TPF Donor-Advised Fund holders in particular, here are several questions worth reviewing with your tax or financial advisor before December 31.
1. How much will you actually give in 2026, and how does that compare with your AGI? Beginning in 2026, taxpayers who itemize can deduct charitable contributions only to the extent their aggregate contributions exceed 0.5% of adjusted gross income (AGI). The IRS has incorporated this new floor into its 2026 tax guidance and estimated-tax calculations.
For example:
For a donor with $1 million of AGI who makes $50,000 of otherwise deductible charitable contributions, the first $5,000 would generally fall below the new floor.
One important feature of the new law is that the amount disallowed because of the 0.5% floor generally does not simply carry forward to a later year. The statute provides a carryforward for amounts lost to the floor only in certain years in which the donor has also exceeded an applicable annual charitable deduction limitation.
That distinction makes year-end planning more important than it may initially appear.
2. Would bunching several years of giving into your DAF make sense? For donors who already expect to give consistently over several years, a Donor-Advised Fund can help separate the timing of the charitable contribution from the timing of the ultimate grants.
Instead of contributing, for example, $25,000 each year for four years, a donor might—with guidance from their tax advisor—contribute a larger amount to their TPF DAF in one year.
The donor receives any available charitable deduction when the contribution is made to the DAF, while continuing to recommend grants to nonprofit organizations over subsequent years.
This strategy can be especially relevant now because it may help donors:
exceed the 0.5% AGI charitable deduction floor in fewer tax years;
exceed the standard deduction in a year when they itemize; and
maintain consistent annual grantmaking even when contributions to the DAF are intentionally concentrated in selected years.
The appropriate approach will depend on each donor's income, deductions and charitable plans.
For donors anticipating an unusually high-income year, perhaps because of a business transaction, bonus, exercise of stock options, sale of securities or another liquidity event, 2026 may also be an appropriate time to discuss whether accelerating future charitable giving into a DAF fits within their broader financial plan.
3. Before contributing cash, review your appreciated assets Year-end planning should consider not only how much to give but also what to give.
Donors holding publicly traded securities or other assets that have appreciated significantly may want to discuss with their advisors whether contributing those assets directly to a DAF could be more tax-efficient than selling them and contributing the cash.
Subject to applicable rules and limitations, donating long-term appreciated assets can potentially allow a donor to:
receive a charitable deduction based on the asset's eligible fair market value; and
avoid recognizing capital gain that could otherwise arise if the asset were sold first.
The IRS notes that contributions of property can generally qualify for a deduction based on fair market value, although special rules and percentage limitations may apply to appreciated property.
For donors already considering rebalancing a concentrated stock position, this can be an especially useful conversation to have before year-end.
An Illustrative Example Consider a donor who owns stock currently worth $150,000 with a cost basis of $50,000.
For illustration only, assuming a 20% federal long-term capital gains tax rate and disregarding other taxes, limitations and individual circumstances:
In this simplified illustration, donating the appreciated stock directly allows the full $150,000 asset value to be committed to philanthropy rather than first realizing the gain and paying tax from the proceeds.
*The amount and availability of any charitable deduction depends on the donor's circumstances, holding period, type of asset, applicable AGI limitations and other tax rules.
The broader point is simple: before automatically writing a year-end check, consider whether appreciated assets may be a better source for your charitable contribution.
4. If you are age 70½ or older, consider whether some giving should come directly from your IRA
A Qualified Charitable Distribution, or QCD, allows an eligible IRA owner age 70½ or older to direct funds from an IRA directly to certain qualified charities. A QCD may also count toward a required minimum distribution, where applicable. The inflation-adjusted QCD limit for 2026 is $111,000 per eligible IRA owner. However, there is an important distinction for DAF holders:
A QCD generally cannot be contributed to a Donor-Advised Fund.
This means some donors may benefit from using different assets for different parts of their philanthropy. For example:
IRA assets → direct gifts to eligible charities
Appreciated securities or cash → TPF Donor-Advised Fund
A QCD also works differently from a charitable deduction because an eligible QCD is generally excluded from taxable income rather than claimed as an itemized charitable deduction.
For some donors, that distinction may make a QCD an important complement to their DAF strategy rather than an alternative to it.
5. Know whether you are likely to itemize before deciding on your year-end strategy
For 2026, the standard deduction is:
$16,100 for single filers and married individuals filing separately;
$32,200 for married couples filing jointly; and
$24,150 for heads of household.
At the same time, the 2026 state and local tax—or SALT—deduction cap is $40,400, subject to an income-based phase-down beginning at modified AGI above $505,000 for most filers. The deduction cannot be reduced below $10,000.
For some taxpayers, particularly those in higher-tax states, the larger SALT deduction may increase the likelihood that they will itemize.
That is why charitable planning should not be considered in isolation. Before deciding whether to make a larger DAF contribution in 2026, donors should look at the combination of:
charitable contributions + SALT + mortgage interest + other eligible itemized deductions and compare that amount with their standard deduction.
6. Don't leave non-cash contributions until the final days of December To qualify for a charitable deduction for 2026, a contribution must actually be completed within the 2026 tax year.
Cash and credit-card contributions can often be completed relatively quickly. Transfers of securities and other non-cash assets may require additional steps involving a broker, custodian, valuation documentation or other processing.
Donors considering year-end gifts of stock or other assets should therefore begin the process well before December 31. See important deadlines below.
TPF encourages DAF holders contemplating a significant non-cash contribution to contact us early so that we can help coordinate the charitable side of the transfer with the donor and their professional advisors.
7. Taking the Standard Deduction? There Is a New Charitable Deduction in 2026
Another new provision beginning in 2026 may be relevant to donors who do not itemize deductions. Taxpayers taking the standard deduction may be able to deduct up to:
$1,000 of eligible cash charitable contributions for individual filers; or
$2,000 for married couples filing jointly.
There is an important distinction for DAF holders: contributions to Donor-Advised Funds do not qualify for this particular non-itemizer deduction. The new provision is therefore most relevant for qualifying direct cash contributions to eligible charities.
Donors who use both direct charitable giving and a DAF may want to discuss with their advisors how the two approaches can work together.
8. For Some High-Income Donors, the Value of Itemized Deductions Has Also Changed The new law also imposes a limitation affecting taxpayers in the highest, 37% federal income tax bracket.
For these taxpayers, the tax benefit associated with itemized deductions may effectively be limited to approximately 35 cents per deductible dollar rather than 37 cents, depending on the taxpayer's circumstances. The limitation applies after the new 0.5% charitable deduction floor.
This does not eliminate the charitable deduction, but it is another reason donors making significant contributions may want to coordinate their year-end philanthropy with their tax and financial advisors.
Important 2026 Year-End Giving Deadlines
Year-end charitable planning often becomes concentrated in the final weeks of December. Starting early is especially important for gifts involving securities, real estate or other non-cash assets.
TPF will confirm its final 2026 processing deadlines before publication. The guide should include:
Check Gifts: Postmarked by December 31, 2026, or received by December 30 for express carriers.
Stock Gifts: Complete transfer by Friday, December 18, 2026] to allow adequate processing time.
Wire Transfers: Initiate by Wednesday, December 28, 206, to be received by December 30, 2026.
Online Contributions: Accepted through midnight, December 31, 2026
Real Estate and Other Complex Gifts: Contact TPF as early as possible and complete required transfers by Friday, December 18, 2026.
New TPF Donor-Advised Funds: Complete documentation and funding by Friday, December 18, 2026.
DAF Grant Recommendations: Submit by December 4, 2026 if you would like TPF to make every reasonable effort to distribute the grant before year-end.
While contributions to a DAF may carry tax consequences for the donor in the year the DAF is funded, grant recommendations from an already funded DAF do not create an additional charitable deduction for the donor. Accordingly, the December deadline for grant recommendations is primarily an operational and philanthropic consideration—not an additional donor tax deadline.
For personalized assistance or to discuss the most effective strategies under OBBB, please contact:
Pnar Özyürek
Director of Philanthropy, Turkish Philanthropy Funds
646.530.8988 | [email protected]
Five Questions to Ask Before Year-End As you review your 2026 charitable plans, consider discussing these questions with your tax or financial advisor:
1. What will my 2026 AGI likely be?
Knowing your approximate income helps determine the impact of the new 0.5% charitable deduction floor.
2. Would it make sense to accelerate future charitable contributions into my TPF DAF?
Bunching can allow donors to concentrate deductions while continuing to distribute grants over time.
3. Do I have appreciated securities that would be more efficient to contribute than cash?
4. If I am over age 70½, should part of my charitable giving come directly from my IRA through a QCD?
5. Have I allowed enough time to complete any stock or other non-cash contributions before year-end?
Planning With Purpose
Tax planning should support philanthropy, not determine it. The organizations, communities and causes donors choose to support remain at the heart of charitable giving.
But the first year under the new 2026 rules reinforces the value of looking at charitable giving as part of a broader financial plan.
For TPF DAF holders, the most important year-end question may therefore be less “How much should I grant from my DAF before December 31?” and more:
“Given what I plan to give over the next several years, when and how should I fund my DAF?”
TPF is available to work with donors and their professional advisors to facilitate contributions of cash, publicly traded securities and other eligible assets and to help donors put their philanthropic plans into action.
This material is provided for educational and informational purposes only and should not be considered tax, legal or investment advice. Tax laws and individual circumstances vary. TPF encourages donors to consult their tax, legal and financial advisors regarding their individual circumstances.