What’s New for 2026
The federal rules for charitable giving changed on January 1, 2026. Here is what matters when you plan gifts with clients.
0.5%
Floor on itemized deductions
Itemizers can deduct only the part of their charitable contributions that exceeds 0.5% of adjusted gross income (AGI).
35%
Cap on deduction value
For taxpayers in the top federal bracket, the tax value of itemized deductions, including charitable deductions, is capped at 35%.
$1,000 / $2,000
Non-itemizer deduction
Taxpayers who take the standard deduction can deduct up to $1,000 (single) or $2,000 (married filing jointly) in cash gifts to qualified charities. Gifts to donor-advised funds do not qualify.
$40,400
Higher SALT cap
The state and local tax deduction cap is $40,400 for 2026, up from $10,000 before 2025, and it phases down at higher incomes. More households may itemize as a result.
Donor-Advised Funds
Strategic Giving
Non-Cash Gifts
Qualified Charitable Distributions (QCDs)
A QCD has to be completed by December 31 to count for 2026, so the conversation with clients who take required minimum distributions (RMDs) is worth starting early. A QCD can satisfy an RMD and keep the distribution out of taxable income, subject to IRS rules.
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Eligible for IRA owners age 70½ and older
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Counts toward the year’s RMD when sent directly to a qualified charity
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Can be gifted to qualified funds (not DAFs) at San Diego Foundation
Gifts of Appreciated Assets
Clients can give long-term appreciated stock or mutual funds directly instead of selling first. That can avoid capital gains on the appreciation and allow a deduction at fair market value, subject to AGI limits.
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Confirm assets are long‑term (held more than one year).
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Mutual fund donations must be received by Nov 23. Stock donations must arrive to SDF brokerage accounts by Dec 30 at noon. (See all 2026 deadlines)
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Give to a DAF to maximize current tax benefits and support nonprofits or causes over time
Complex Assets Take More Time
Gifts of real estate, business interests and other large assets often come up around a liquidity event, when timing matters most. The most typical complex gifts we accept are real estate and appreciated business interests, including privately held C- and S-corporation stock, limited partnership interests and LLC interests. These gifts involve more steps than a securities transfer. Contact us early so we can review the asset and plan the timing with you and your client.
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2026 Year-End Deadlines
Use these dates to help clients complete their gifts by December 31, the last day a gift can count toward the 2026 tax year. Some assets take longer to process, and mutual funds are due in November.
Mutual Funds
Must arrive to San Diego Foundation by
November 23
Stock
Must arrive to SDF brokerage accounts by
December 30 at noon
Wire or Electronic Bank Transfer
Funds must be received by
December 31
Credit Card
Must be submitted online by
midnight on December 31
Or, by phone/in-person by
noon on December 31
Check
Must be postmarked by
December 31
Or, hand delivered by
December 31 at noon
IRAs / QCDs / RMDs
Deadlines are dependent on IRA contribution type and custodian.
Let’s Connect
For more than 50 years, our team has helped professional advisors and your clients find creative, tax-effective ways to make a positive impact in the San Diego region and beyond.
Want to talk through how we can support you, your clients and our region before 2026 ends? We help with QCDs, appreciated securities, complex assets and more. Contact us today.
Jason Rogers, AIF, CWS
Director, Professional Advisor Relations & Gift Planning