It’s the season of giving, a time when do-gooders get generous and tax professionals get creative from time to time. This is because donations to charities and other non-profit organizations are tax deductible.
Historically, however, most taxpayers do not receive tax breaks for charitable activities. Except for a short period under the COVID-19 Relief Act, taxpayers typically have to itemize to take advantage of the deduction, but about 9 out of 10 people take the standard deduction instead, according to the Internal Revenue Service.
However, the rules regarding deductions for charitable activities are changing. A provision of President Donald Trump’s so-called “Big Beautiful” bill, passed in July, allows taxpayers who don’t itemize for the 2026 tax year to deduct up to $1,000 for single filers and $2,000 for married couples filing jointly.
So if you’re thinking of writing a check to your favorite charity, it may make more tax sense to wait until January to do so, says Miklos Ringbauer, a certified public accountant and founder of the accounting firm MiklosCPA.
“First and foremost, if they like to give, give,” he says. “But if they’re making a strategic move and aren’t going to definitely itemize for the 2026 tax year, it would be in their interest to make a charitable gift in 2026.”
When it makes sense to wait to donate
Let me be clear: If you plan on donating to your favorite charity this holiday season, no one is telling you not to do it. In fact, many tax experts advise against changing your financial plan in the name of optimizing your tax return.
“There’s the tax calculation, sure, but there’s also the philanthropic purpose. They may need to fund an organization, and they want to do it now,” says Stephen Eckert, practice leader at Plante Moran IRS. “This could invalidate some of this.”
But if January donations are as effective as December donations, he says, you might be able to save a few dollars and do the same amount of philanthropy.
To qualify for the new deduction, cash donations must be made to eligible charities, but donations to political campaigns, crowdfunding efforts, private foundations and donor-advised funds are excluded.
Be sure to receive a receipt for your gift. The IRS typically requires written confirmation for donations over $250.
And before you take action for the 2026 tax year, Ringbauer says it’s wise to consider whether any major changes in your life will dramatically change your tax situation. The IRS rules regarding charitable contributions are different and more complicated for those who itemize deductions.
“That’s where a trusted financial advisor or accountant comes in,” Ringbauer says. “Let’s talk to them before the end of the year and look at their own scenarios so we can come up with a really good solution as to whether (a charitable tax strategy) would benefit them or not.”
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