By Kim Alvarez, Vice President – Philanthropy, The Foundation for Enhancing Communities
As 2026 draws to a close, professional advisors can help clients make the most of their charitable giving while preparing for key year-end deadlines.
Even if you’ve already discussed charitable giving with your clients, another conversation may uncover opportunities they haven’t considered. Changes to federal tax rules in 2026 make these discussions especially important.
The Foundation for Enhancing Communities (TFEC) can help you explore charitable giving options that align with your clients’ financial plans and philanthropic goals.
Here are five strategies worth revisiting before Dec. 31.
Review IRA Giving Opportunities for Clients 70½ and Older
For clients age 70½ and older, a qualified charitable distribution (QCD) from an individual retirement account (IRA) can effectively support the causes they care about.
The QCD limit for 2026 is $111,000 per taxpayer. For clients subject to required minimum distributions, a QCD can count toward that requirement while generally excluding the qualifying amount from taxable income.
QCDs must be made directly from an IRA to an eligible charitable organization and cannot be directed to donor-advised funds. However, certain other charitable funds at TFEC may qualify, including restricted funds established to benefit specific charities.
TFEC can help you identify an appropriate giving option for your client. Learn more about qualified charitable distributions through the IRS.
Consider Bunching Charitable Contributions
For clients who regularly support charitable organizations, it may be time to revisit a strategy known as “bunching.”
With a higher standard deduction and a new limitation generally requiring itemized charitable contributions to exceed 0.5% of adjusted gross income before becoming deductible, the timing of charitable gifts deserves additional consideration.
Bunching allows clients to concentrate several years of charitable contributions into a single tax year, potentially increasing their itemized deductions. They may then take the standard deduction in other years.
A donor-advised fund at TFEC can support this approach. Clients can make a larger contribution now while recommending grants to their favorite charitable organizations over time.
Learn more about how bunching can support year-end charitable giving.
Look Beyond Cash for Charitable Gifts
Before clients write checks to support their favorite causes, encourage them to consider whether other assets might offer advantages.
Gifts of appreciated stock may be particularly attractive. Donating publicly traded securities held for more than one year can generally help clients avoid recognizing unrealized capital gains while potentially qualifying for a charitable deduction based on fair market value, subject to applicable limitations.
TFEC can accept gifts of stock and use the proceeds to support a client’s donor-advised fund or another charitable fund.
Other assets, including real estate and closely held business interests, may also offer giving opportunities. These gifts often require additional planning, so October is an ideal time to start the conversation.
TFEC can help evaluate potential gifts and work alongside you to determine an approach that supports your client’s goals.
Understand the New Deduction for Non-Itemizers
Clients who take the standard deduction may have a new reason to consider charitable giving before year-end.
Beginning with the 2026 tax year, eligible taxpayers who do not itemize can deduct up to $1,000 in qualifying cash charitable contributions. Married couples filing jointly may deduct up to $2,000.
This deduction comes with limitations. Only qualifying cash contributions count, and gifts to donor-advised funds are excluded.
For clients who previously believed their charitable gifts offered no federal income tax deduction because they did not itemize, this change is worth discussing.
Learn more about the 2026 charitable giving tax changes through the IRS.
Revisit Long-Term Charitable Giving Plans
Year-end planning should extend beyond immediate tax deadlines.
As clients review their financial and estate plans, consider whether their charitable intentions still match those documents.
Have they included a favorite charity or a TFEC fund in their will or trust? Have they reviewed IRA beneficiary designations to determine whether a charitable gift would support their long-term goals?
Changes in family circumstances, finances or charitable interests can create reasons to update an existing plan.
These conversations can help clients create a lasting impact while ensuring their wishes are carried forward.
TFEC Can Help With Year-End Charitable Planning
Thoughtful charitable planning can help clients support the causes that matter to them while making informed financial decisions.
TFEC’s Philanthropy Team works with attorneys, CPAs and financial advisors to explore charitable giving options that align with their clients’ goals.
Learn more about partnering with TFEC as a professional advisor, or contact the Philanthropy Team at philanthropy@tfec.org for assistance with year-end charitable planning.
