Tax season is a popular time to think about your charitable giving. And, with recent changes to the tax laws, many are contemplating whether and how to reshape their approach.
For New Yorkers who give—or are considering giving—these changes mean both new opportunities and new considerations.
The law raises the 2026 standard deduction to $16,100 for single filers and $32,200 for joint filers, permanently allows cash-gift deductions up to 60 percent of adjusted gross income (AGI), increases the estate- and gift-tax exemption to $15 million per person, and keeps current tax brackets in place
Here are four tax topics worth discussing with your CPA this spring:
- How the new itemizing rules could affect your giving
Beginning in 2026, a deductibility “floor” is in place, meaning that charitable contributions will be deductible only to the extent they exceed 0.5 percent of your AGI, and high-income donors will also see the value of itemized deductions capped at 35 percent.
One strategy many donors are exploring is “bunching” several years of gifts into one year to exceed the standard-deduction threshold, reduce the impact of the “floor,” and maximize deductions over time. A donor-advised fund (DAF) at The New York Community Trust makes this easy: your contributions are eligible for the charitable deduction right away, and then you can recommend grants to nonprofits over time.
- A new charitable deduction for non-itemizers
The law also introduces a new universal deduction, even for taxpayers who take the standard deduction. Non-itemizers may deduct up to $1,000 in cash gifts to qualified public charities ($2,000 for married couples).
These contributions must be cash gifts and cannot be made to donor-advised funds, private foundations, or supporting organizations. However, donations to other types of funds, including our Community Needs Fund, do qualify—and help support vital nonprofit programs across New York City, Long Island, and Westchester. Our team can help you identify eligible options.
- Documentation still matters—especially for non-cash gifts
While the law changes some deduction rules, documentation requirements remain the same. To be eligible for a deduction, every charitable gift must be supported by a bank record or written acknowledgment, which is required for contributions of $250 or more.
Additional rules apply for non-cash gifts:
- Gifts over $500 must be reported on IRS Form 8283.
- Claiming a deduction over $5,000 requires a qualified appraisal
A donor-advised fund can help simplify record-keeping. When you contribute appreciated assets or other property to a DAF, you receive one receipt for the contribution, rather than collecting receipts for each individual grant you recommend later.
- Strategic giving tools: QCDs and donor-advised funds
For donors ages 70 1⁄2 and older, the Qualified Charitable Distribution (QCD)—a direct distribution to a qualified charity from an IRA—remains a powerful tool. With an annual limit now at $111,000 per taxpayer, these special IRA distributions have the added benefit of both being excluded from taxable income and counting towards any required minimum distribution.
These contributions must be cash gifts and cannot be made to donor-advised funds. However, donations to our Community Needs Fund do qualify—and help support vital nonprofit programs across our region. Our team can also help you identify other eligible options at The Trust.
For donors of any age, DAFs remain one of the most flexible and tax-efficient ways to give, allowing you to bunch contributions upfront for tax purposes while recommending grants to keep up support for nonprofits on your own schedule.
Turn to The Trust for Guidance
Talking with your CPA about these new rules and how they may affect your personal plans can help ensure your giving continues to be both impactful and tax efficient.
When you’re ready to explore your giving options, The Trust can help you design a strategy that supports the organizations and causes you care about, across New York and beyond. Contact Mike Nuno at mnuno@thenytrust.org.
This material was developed for The New York Community Trust. It is published for informational purposes only and with the understanding that it is not legal, accounting, or other professional advice.
