As we move through the year end planning, proactive planning is key—especially now that new 2026 tax rules have changed the math on giving.
A client planned to contribute $30,000 to a DAF. But on a $5M AGI, the new 0.5% floor erased the deduction on her first $25,000. Combined with the 35% deduction benefit cap for top earners, her total tax savings dropped to just $1,750 —so we told her to hold it.
To stay tax-efficient : either bunch 3–4 years of gifts into a single DAF contribution to clear the floor once, or schedule major donations during lower-income years when that threshold shrinks.
There is good news for non-itemizers: starting in 2026, standard-deduction filers can claim a new above-the-line deduction of up to $1,000 for single filers and $2,000 for married couples filing jointly.
Philanthropy is personal, but tax efficiency is structural. Don’t let shifting deduction limits diminish the impact of your generosity.
Let’s review your income projections and craft a multi-year giving plan that maximizes both your impact and your tax savings.
