Timing Matters
Gifts of mutual fund shares must be received by Monday, Nov 23. Gifts of stock must arrive at SDF’s brokerage accounts by noon on Wednesday, Dec 30.
Make this Giving Season count with eight tax-smart tips for 2026.
The holidays are when many San Diegans increase their giving.
This year, the new charitable tax rules that took effect on January 1, 2026 give you one more reason to plan ahead. They include a 0.5% threshold for itemizers, a limit on the tax savings for top earners and a sustained, higher standard deduction. Read more in What’s New for 2026 Giving.
Whether you give to a cause close to your heart or to the work San Diego needs most, timing matters. Here are eight tax-smart ways to close out the year. As always, our Giving Team is available to assist you at (619) 814-1332 or [email protected].
At a Glance
- The 2026 tax rules add a 0.5% threshold for itemizers, limit the tax savings for top earners to 35 cents per dollar and raise the standard deduction.
- Donating appreciated stock instead of cash can help you avoid capital gains tax and give more.
- Bunching several years of gifts into one year with a donor-advised fund can raise your deduction while your grants continue.
- If you’re 70½ or older, a QCD lets you give from your IRA without adding to your taxable income.
- Year-end deadlines start Nov 23 for mutual funds and Dec 30 for stock. Most other gifts are due Dec 31.
1. Give Cash
Giving cash, usually by check or wire transfer, to a nonprofit or your donor-advised fund (DAF) lets you claim a tax deduction of up to 60% of your adjusted gross income (AGI) in any one year when you itemize. You can carry forward gifts above that limit for up to five more tax years.
New in 2026, you may also be able to deduct up to $1,000 as a single filer or $2,000 as a married couple even if you don’t itemize.
Or consider a recurring monthly gift to support programs at a smaller level throughout the year. You can change or cancel it at any time.
Double Your Online Gift by December 31
2. Donate Appreciated Securities
Direct gifts of long-term appreciated securities to a nonprofit or your DAF offer important advantages. These include publicly traded stock, publicly traded bonds and mutual fund shares.
The full fair market value of your gift is deductible up to 30% of your AGI each year when you itemize. You can carry forward gifts above that limit for up to five more tax years.
You also avoid the capital gains tax you would owe if you sold the assets and donated the proceeds, which can mean more for the causes you care about.
Here’s an example. Sally has $100,000 of long-term appreciated stock with a $10,000 cost basis. Assuming a 15% capital gains rate, donating the stock directly to her DAF lets her avoid tax on her $90,000 gain and give $13,500 more to charity.
| Sally’s example | Sally sells the stock and donates the proceeds | Sally donates the stock directly to her DAF |
|---|---|---|
| Cost basis | $10,000 | $10,000 |
| Value of appreciated stock | $100,000 | $100,000 |
| Capital gains tax | $13,500 | $0 |
| Net available to charity | $86,500 | $100,000 |
Have securities that have dropped below what you paid for them?
If you sell them at a loss, the losses can offset capital gains and up to $3,000 of ordinary income. If you itemize, you can then donate the cash from the sale and claim a charitable deduction. You can carry forward any remaining loss to future years.
Rebalancing your portfolio?
Donating shares that have grown beyond your target allocation can help you reduce those holdings without paying capital gains tax, and you can claim a charitable deduction. Talk with your advisor about the right amount.
3. “Bunch” Your Gifts
Bunching means combining two or more years of charitable gifts into a single tax year so your itemized deductions can exceed the standard deduction that year. In the following years, you take the standard deduction again. Your giving stays steady over time, but the timing of your tax deduction changes in your favor.
In 2026, bunching can be especially useful.
The standard deduction is higher, and the new 0.5% threshold for itemizers applies once, rather than every year. A donor‑advised fund (DAF) at San Diego Foundation lets you claim the full deduction in the year you contribute to the fund, then recommend grants to nonprofits on your own schedule.
Bunching Charitable Donations to Maximize Tax Deductions.
4. Add a Planned Gift to Your Estate Plan
Did you know that giving back can last a lifetime and beyond?
Many SDF donors revisit their estate plans with their professional advisors during the fourth quarter, which often presents an opportunity to consider establishing a planned gift during the Giving Season.
SDF legacy funds provide lasting benefits for donors, families and causes that matter. By setting up a legacy fund, you can direct the lasting change you want to make in our region and beyond. Legacy gifts come in all shapes and sizes, and from a variety of assets, including:
- Donor-advised funds
- Bequests by wills or living trusts
- Charitable gift annuities
- Charitable remainder trusts
- Charitable lead trusts
- Charitable endowments
- Life insurance policies
- Retirement assets such as IRAs
The best part? If you already have a DAF with us, you can simply amend your existing fund agreement and work with us to ensure your DAF is named in your estate plan as the gift you wish to make upon your passing.
Another simple step is to name a charity as the beneficiary of your IRA or other retirement account. Charities don’t pay income tax on those assets, while your heirs usually would, so more of your gift goes to the causes you care about. Ask your account custodian for a beneficiary form, and let our team know if you’re naming SDF.
5. Donate Complex Assets
In addition to publicly traded stock, SDF accepts gifts of complex assets, including real estate, business interests, privately held stock and more.
We specialize in simplifying the process of turning complex assets into charitable gifts. We accept asset gifts that many other nonprofits and commercial brokerage firms don’t have the ability or the experience to accommodate.
6. Make a Qualified Charitable Distribution (QCD) if you’re 70½+
If you’re 70½ or older, a Qualified Charitable Distribution (QCD) lets you give directly from your IRA to charity, so the gift isn’t counted as taxable income. A QCD can count toward your Required Minimum Distribution (RMD) and doesn’t depend on itemizing.
In 2026, you can give up to $111,000 per person through QCDs. You can also direct a one-time gift of up to $55,000 to a charitable remainder trust or charitable gift annuity.
QCDs can’t go to DAFs, but you can give them to SDF funds like the Close to Home Fund, affinity funds and other programs.
A QCD may be a good fit if you:
- Are required to take an RMD from an IRA but don’t need the money and want to give it to charity
- Want to reduce your IRA balance to lower future RMDs
- Have fewer itemized deductions than the standard deduction, so you wouldn’t be able to deduct the gift
- Want to make a larger gift than you could by donating cash or other assets, since the AGI-based deduction limit doesn’t apply to QCDs
How a QCD Can Boost Your Giving Strategy.
7. Align Your Giving with What Matters Most
San Diego Foundation’s work is guided by four connected areas of focus:
- Family well-being
- Education
- Environment
- Housing
Progress in one area can strengthen outcomes in others. Stable housing supports success in school, and healthy environments strengthen families and communities.
That means a gift in one area ripples across the entire community. Consider aligning your giving with the priorities you care about most, or give to the Close to Home Fund to support San Diego’s connected needs together.
$25,000 Match
Through Dec 31, California Bank & Trust will match gifts to the Close to Home Fund dollar-for-dollar, up to $25,000 total.
Our Giving Team can help you find the right way to give. Connect with Your Giving Team.
8. Tie It All Together with a Donor-Advised Fund
A donor-advised fund (DAF) can work with nearly every strategy in this article. You can contribute cash, stock, complex assets and more, claim your deduction in the year you give, and recommend grants to nonprofits over time. You can also name your DAF in your estate plan.
If you don’t have a fund yet, now is a good time to learn how a DAF can support your giving.
Opening a fund starts with a short form. Our team will help you complete the rest of the process.
2026 Year-End Deadlines
Review the dates below to make sure your contributions and grant recommendations are received and processed by December 31, the IRS deadline for yearly tax deduction eligibility. For some assets, the dates fall in November.
| Type of gift | 2026 deadline |
|---|---|
| Mutual funds | Must be received by Monday, Nov 23 |
| Stock | Must arrive at SDF’s brokerage accounts by noon on Wednesday, Dec 30 |
| Credit card | Online by midnight on Thursday, Dec 31. By phone or in person, processed by noon on Dec 31 |
| Wire or electronic transfer | Funds must be received by Thursday, Dec 31 |
| Check | Mailed checks must be postmarked by Dec 31. Hand-delivered checks must arrive by noon on Dec 31 |
| IRA (including QCDs and RMDs) | Deadlines and actions depend on your IRA type and custodian |
Grants from your SDF fund that you want postmarked before Dec 31 must be received by noon on Thursday, Dec 17.
FAQs on Year-End Giving
What are the 2026 year-end giving deadlines?
Mutual fund shares must be received by Nov 23. Stock must arrive by noon on Dec 30. Credit card, wire, electronic transfer and check gifts are due by Dec 31. Dates for IRA gifts depend on your custodian.
What is the best way to give before the year ends?
It depends on your situation. Many donors give appreciated stock to avoid capital gains tax, bunch gifts into one year, or give from an IRA if they’re 70½ or older. Our Giving Team can help you compare.
Can I give appreciated stock to a donor-advised fund?
Yes. You can contribute long-term appreciated stock to a DAF, claim a deduction for its full fair market value and avoid capital gains tax on the growth.
Can I make a QCD to a donor-advised fund?
No. A QCD can’t go to a DAF, but it can support other SDF funds, such as the Close to Home Fund.
Do the new tax rules in 2026 change how I should give?
They might. The rules add a 0.5% threshold for itemizers, impose a limit on tax savings for top earners, and raise the standard deduction. Talk with your tax advisor about your situation.
Talk With Us
Our team is here to help you make the most of your giving and your tax benefits this season. Connect with our Giving Team, or contact Donor Services at (619) 814-1332 or [email protected].
