Quick answer: The giving strategies that still produce real tax savings are donating appreciated stock instead of cash, making qualified charitable distributions from an IRA once you are 70½, and bunching several years of gifts into one year, often through a donor-advised fund. Starting with 2026 returns, people who take the standard deduction can deduct a limited amount of cash gifts, while itemizers face a small floor based on income. The best approach depends on your age, whether you itemize, and what assets you hold.
Central New York is a generous place. Churches, food banks, volunteer fire companies, and local colleges all depend on it. Most people give because they believe in the cause, not for the deduction, but there is no reason to give in a way that costs you more than it has to. Here is what still works.
Can I deduct charitable gifts if I do not itemize?
For many years, the answer was no. Since most households take the standard deduction, most gifts produced no tax benefit at all.
That changes starting with 2026 returns. Taxpayers who do not itemize can deduct cash gifts to qualifying public charities up to $1,000, or $2,000 for married couples filing jointly. Gifts to donor-advised funds and private foundations do not count for this deduction, and it only covers cash, not stock or household goods. The IRS summarizes the changes on its page about recent tax law provisions.
It is modest, but for a retired couple giving steadily to their parish and a few local charities, it is a real benefit they did not have before. Keep your receipts.
What changed for people who itemize?
Itemizers also face new rules starting in 2026:
- A floor based on income. Only charitable gifts above 0.5 percent of your adjusted gross income are deductible. For someone with $200,000 of AGI, the first $1,000 of giving produces no deduction.
- A cap on the benefit for top earners. Taxpayers in the highest federal bracket have the value of their itemized deductions, including charitable gifts, limited to a lower rate than their bracket.
- The 60 percent of AGI limit for cash gifts to public charities is now permanent.
New York has its own rules for itemized deductions, including limits on charitable deductions for very high incomes. Because you can itemize on your New York return even when you take the federal standard deduction, it is worth checking both. Our article on itemizing versus the standard deduction explains how that works.
Why give appreciated stock instead of cash?
If you have stock, mutual fund shares, or ETF shares that have gone up in value and you have held them more than a year, donating them directly is usually better than selling and giving cash.
You get two benefits:
- You deduct the full fair market value of the shares, if you itemize.
- You never pay capital gains tax on the appreciation.
Say you bought shares years ago for $2,000 and they are now worth $10,000. If you sell, you owe tax on $8,000 of gain. If you donate the shares, the charity sells them tax-free and you deduct $10,000. Gifts of appreciated property to public charities are generally limited to 30 percent of AGI, with a carryforward for any excess.
Do not donate stock that has lost value. Sell it, take the loss on your return, and donate the cash.
How do qualified charitable distributions work?
Once you reach age 70½, you can transfer money directly from a traditional IRA to a qualified charity. This is called a qualified charitable distribution, or QCD.
Why it matters:
- The distribution is excluded from your income entirely, which is better than a deduction because it works even if you take the standard deduction.
- Once you are old enough for required minimum distributions, a QCD counts toward your RMD.
- Lower income can reduce how much of your Social Security is taxable and may help keep Medicare premiums down.
The annual QCD limit is indexed for inflation, so check the current IRS figure. The money must go directly from the IRA custodian to the charity, not to you first. Donor-advised funds and private foundations cannot receive QCDs. QCDs are reported on Form 1099-R as ordinary distributions, so tell your preparer which ones were QCDs. For more on retirement income, see our article on taxes in retirement.
Is bunching with a donor-advised fund still worth it?
Bunching means concentrating several years of giving into one year so you itemize that year and take the standard deduction in others. A donor-advised fund makes this practical: you contribute a large amount in one year, take the deduction then, and recommend grants to charities over the following years.
With the new 0.5 percent floor, bunching may actually become more valuable, because the floor applies once per year. Putting two or three years of gifts into one year means you pay the floor once instead of several times. Donating appreciated stock to the donor-advised fund combines both strategies.
What records do I need for charitable deductions?
The IRS is strict on substantiation, and a missing letter can wipe out a deduction:
- Any cash gift: a bank record or written receipt from the charity.
- Single gifts of $250 or more: a written acknowledgment from the charity, received by the time you file, stating the amount and whether you received anything in return.
- Noncash gifts over $500: Form 8283 with your return.
- Noncash gifts over $5,000 (other than publicly traded stock): generally a qualified appraisal.
For clothing and household goods, keep a list with condition and a reasonable value. A simple running log of gifts kept through the year makes tax time much easier.
Frequently asked questions
Can I make a qualified charitable distribution to a donor-advised fund?
No. QCDs must go to a public charity that is not a donor-advised fund or a supporting organization. Private foundations generally do not qualify either. Give to the charity directly from the IRA.
Is it better to give cash or stock to charity?
If you have long-term appreciated stock and you itemize, stock is usually better because you avoid capital gains tax and still deduct full value. If you do not itemize, cash may be simpler, and starting in 2026 limited cash gifts can be deducted without itemizing.
Can I deduct the value of my volunteer time?
No. The value of your time is never deductible. You can, however, deduct unreimbursed out-of-pocket costs of volunteering, such as mileage at the IRS charitable mileage rate, if you itemize.
Do I get a deduction for raffle tickets or a charity dinner?
Raffle tickets are not deductible. For a dinner or event, you can deduct only the amount you paid above the fair value of what you received. The charity should tell you that amount on the receipt.
This article is general information for 2026, not tax or legal advice for your situation. Tax rules and figures change; confirm current amounts with the IRS, New York State, or your accountant before acting.
Related service: Personal Tax Preparation & Planning