Give Thanks, Give Back: Make Your Generosity Count Before December 31

Thanksgiving is the season for counting blessings, and for a lot of us, that naturally turns into giving back. The best part? This year, the tax code actually meets you halfway — even if you don't itemize. Here are five things worth knowing before the year runs out.

1. You don't have to itemize to get a tax break for giving anymore

For years, charitable giving only helped your taxes if you itemized. If you took the standard deduction, your generosity had no federal tax value at all.

That changed in 2026. A new permanent rule lets people who take the standard deduction also deduct up to $1,000 in cash gifts ($2,000 for married couples filing jointly). It comes right off your income, on top of the standard deduction — $16,100 for single filers and $32,200 for joint filers in 2026.

Two catches: it only covers cash gifts (checks, cards, and online donations count; clothing and household goods don't), and gifts routed through a donor-advised fund don't qualify. Give directly to the charity.

2. If you do itemize, there's a new hurdle to know about

Itemizers face a new rule in 2026 too: only the part of your charitable gifts above 0.5% of your adjusted gross income is deductible. If your AGI is $200,000, the first $1,000 of gifts doesn't count.

That makes the next point matter more than ever.

3. Bunch your giving into one year

"Bunching" is simple: instead of giving the same amount every year, give two years' worth in a single year. In the bunched year, your gifts are big enough to clear the standard deduction and itemize; in the off year, you take the standard deduction (plus the new $1,000/$2,000 non-itemizer break).

Example: a single filer who gives $8,000 a year has $16,000 of gifts over two years — but spread out, it never beats the $16,100 standard deduction. Give $16,000 in one year instead, and suddenly itemizing pays off. Same total generosity, better tax result.

A donor-advised fund makes this easy: contribute the bunched amount now, take the deduction this year, and let the fund distribute grants to your favorite charities on your own schedule.

4. Over 70½? Give straight from your IRA

If you're 70½ or older, a Qualified Charitable Distribution is one of the best deals in the tax code. You send money directly from your IRA to a charity — up to $111,000 per person in 2026 — and it never counts as taxable income at all. It also counts toward your required minimum distribution for the year.

Why that matters: money that never enters your income can't push up your tax bracket, your Medicare premiums, or the tax on your Social Security. Just remember the transfer has to go straight from the IRA custodian to the charity, and it can't go to a donor-advised fund.

5. The boring part that protects all of it: keep the receipt

None of the above works without proof. For any cash gift, keep a bank record or a written note from the charity showing its name, the date, and the amount. For gifts of $250 or more, you need a written acknowledgment from the charity before you file. And everything has to actually leave your hands by December 31, 2026 to count for this year.

Giving feels good on its own. Getting the tax treatment right is just making sure the good deed doesn't go to waste. If you're thinking about a bigger gift before year-end — or wondering whether bunching, a QCD, or a donor-advised fund fits your situation — give us a call. We'd be glad to run the numbers with you.

Happy Thanksgiving from all of us at The Bottom Line!