A Three-Part Planning Series | Part Two: The Spirit of Giving
As Thanksgiving approaches, many of us pause to reflect on the people, opportunities, and blessings we’re grateful for. It’s also a natural time to consider how we can share those blessings with others.
Generosity can take many forms. It may be supporting your church, contributing to a local nonprofit, helping families in need, or giving to an organization whose mission has touched your life. Whatever giving looks like for you, a little planning can help you be intentional about the impact you want to make.
As part two of our Finish the Year with Intention series, we’re looking at charitable giving and how recent tax law changes may impact your giving strategy as you support the causes that matter most to you.
What’s changing for charitable giving?
The One Big Beautiful Bill Act (OBBBA) introduced several changes to charitable deductions beginning with the 2026 tax year.
For those who take the standard deduction: You may now be able to deduct up to $1,000 in qualifying cash donations, or $2,000 if married filing jointly, even if you don’t itemize. Gifts must be made to eligible charitable organizations, and contributions to donor-advised funds do not qualify for this particular deduction. Unsure if this applies to you? Please ask!
For those who itemize deductions: A new threshold applies. Generally, charitable contributions are deductible only to the extent that your total eligible giving exceeds 0.5% of your adjusted gross income (AGI).
For example, if your AGI is $100,000, the first $500 of your charitable contributions generally would not be deductible. If you gave $5,000, the remaining $4,500 could potentially be included in your itemized deductions, subject to other applicable limits.
These rules may influence how and when you give, but they don’t have to change why you give. Your tax advisor can help you understand how the changes apply to your situation.
A closer look at donor-advised funds
If charitable giving is an ongoing part of your financial plan, a donor-advised fund, or DAF, may be a tool worth considering.
A DAF is a charitable giving account established through a sponsoring organization. You contribute cash, appreciated investments, or other accepted assets, and the contribution is generally eligible for a tax deduction in the year it is made if you itemize, subject to applicable limits. You can then recommend grants to eligible charities over time.
For example, you might choose to contribute several years’ worth of planned charitable gifts to a DAF in one year, a strategy sometimes called “bunching.” This could help you itemize deductions in the year of the contribution while allowing you to recommend grants to your favorite charities in future years.
A DAF can also be a meaningful way to involve your family in giving. You might invite your children or grandchildren into conversations about the causes they care about and the difference your family hopes to make together.
It’s important to know that contributions to a DAF are irrevocable: once contributed, the assets belong to the sponsoring charity, which has final authority over grants. while a DAF may be useful for some families, it isn’t the right fit for everyone.
Giving with purpose
Before the year ends, consider asking yourself:
- Which organizations or causes have made a difference in my life or community?
- Am I giving in a way that reflects what matters most to me?
- Could a conversation with my family help us make giving part of our shared legacy?
- Would it be helpful to review the timing or type of gifts I make?
The answers don’t have to lead to a large gift or a complicated plan. Often, the most meaningful place to start is simply identifying what you care about and taking one intentional step.
Building something bigger than ourselves
A legacy is about more than what we leave behind. It’s also about what we build along the way: the kindness we show, the values we share, and the lives we touch.
This Thanksgiving season, we’re grateful for the opportunity to walk alongside you and your family. If charitable giving is part of your goals, we’d welcome the chance to help you explore how it can fit into your financial plan and coordinate with a tax advisor.
Together, we can build something bigger than ourselves.
This article is for educational purposes and is not individualized tax advice. Charitable deduction rules and limitations depend on your circumstances. Please consult with a tax advisor before making a gift.