By Christian Campbell, Business Development Manager | Updated October 30, 2026

For many families, giving isn’t a tax strategy. It’s a conviction, whether that’s a regular tithe to your church or support for ministries and causes close to your heart. Still, how you give can affect how much reaches the people you want to help. Federal tax law changed several charitable giving rules starting in 2026, so this year’s approach may need a fresh look.

What changed for 2026

A new deduction for people who don’t itemize. Starting in 2026, taxpayers who take the standard deduction can deduct up to $1,000 of cash gifts to qualifying public charities, or $2,000 for married couples filing jointly. The gift must be cash, given directly to an eligible charity. Gifts to donor-advised funds don’t count toward this deduction, and unused amounts don’t carry forward.

A new floor for people who do itemize. If you itemize, only the portion of your charitable gifts above 0.5% of your adjusted gross income is deductible. For example, a household with $200,000 of AGI would not deduct the first $1,000 of its gifts for the year.

A cap on the benefit for the top bracket. For taxpayers in the 37% bracket, the tax benefit of itemized deductions, including charitable gifts, is limited to the equivalent of a 35% rate.

One rule made permanent. The limit allowing cash gifts to public charities of up to 60% of AGI is now permanent, with the usual five-year carryforward for amounts above it.

Four approaches to consider

1. Give from your IRA if you’re 70½ or older. A qualified charitable distribution (QCD) lets you send money directly from your IRA to a charity. The amount isn’t included in your taxable income, and if you’re 73 or older, it counts toward your required minimum distribution. For 2026, you can give up to $111,000 per person this way. QCDs can’t go to donor-advised funds or private foundations, and the money must go straight from the IRA custodian to the charity.

2. Give appreciated investments instead of cash. If you’ve held a stock or fund for more than a year and it has grown in value, giving the shares directly to a charity may let you deduct their market value and avoid paying capital gains tax on the growth. This approach only helps if you itemize.

3. Consider “bunching” your gifts. With the 2026 standard deduction at $32,200 for married couples, many families don’t give enough in one year to itemize. Combining two or three years of planned giving into a single year, sometimes through a donor-advised fund, may let you itemize that year and take the standard deduction in others. Keep in mind the new 0.5% floor applies each year you itemize.

4. If you don’t itemize, use the new deduction. Make sure your cash gifts go directly to an eligible charity and keep your receipts. Gifts of $250 or more require a written acknowledgment from the charity.

Giving and investing in line with your values

Some families also want their investments, not just their gifts, to reflect their faith. Biblically responsible investing is one optional approach that screens portfolios using biblical values. You can learn more on our Biblically Responsible Investing page, including how to request a complimentary Impact Report on your current portfolio.

Bringing it together

The best way to give depends on your age, whether you itemize, what you own, and the timing of your income. Gifts must generally be completed by December 31 to count for 2026, and some custodians need extra time to process QCDs and stock transfers. If you’d like help coordinating your giving plan with your tax professional, talk to an advisor on our Lake Norman team.

This information is educational and is not individualized investment, tax or legal advice. Inspire Advisors, LLC does not provide tax or legal advice; please consult a qualified tax professional about your situation. Biblically responsible investing is an optional approach; screening involves subjective judgments, relies on information that may be incomplete or change, and does not predict investment performance. Investment advisory services offered through Inspire Advisors, LLC, an SEC-registered investment adviser. Registration does not imply a certain level of skill or training. Investing involves risk, including possible loss of principal.