The Key Charitable Giving Strategies for High-Net-Worth Families in 2026

For years, high-net-worth families treated charitable giving as a straightforward transaction: contribute to a qualified charity, itemize the deduction, done.

The One Big Beautiful Bill Act changed the math. Starting in 2026, itemizers can only deduct the portion of charitable contributions that exceeds 0.5% of their AGI — and for families in the 37% bracket, the deduction value is now capped at 35 cents on the dollar.

Those two changes mean the “how” behind a gift now carries real tax consequences that a check written the same way as last year may not account for.

Key points we’ll cover:

• Starting in 2026, charitable contributions must exceed 0.5% of adjusted gross income before itemizers can claim a deduction, and the value of deductions is reduced for taxpayers in the 37% bracket.
• Donor-advised funds can provide flexibility by separating the timing of the tax deduction from when charities receive grants.
• Bunching multiple years of charitable gifts into one tax year may help some families exceed deduction thresholds and improve the value of itemizing.
• Qualified Charitable Distributions allow individuals age 70½ and older to give directly from an IRA to charity, satisfy required minimum distributions, and reduce taxable income without itemizing.
• The most effective charitable giving approach depends on factors such as income, account types, tax filing status, and charitable goals.

Why Charitable Giving Tax Strategies Matter More Right Now

The new 0.5% AGI floor hits differently depending on how much you give. A family with $500,000 in AGI has to clear $2,500 in contributions before a single dollar becomes deductible. That threshold disappears from your return with nothing to show for it.

For high earners who have historically relied on large annual gifts to reduce taxable income, that floor — combined with the 35% deduction cap that applies to the 37% bracket — means the same gift produces measurably less tax benefit in 2026 than it did a year ago. A charitable giving tax strategy built around structure, timing, and the right giving vehicles now does real work that writing an unplanned check simply cannot.

Donor-Advised Funds: A Flexible Tool for Long-Term Givers

A donor-advised fund (DAF) lets you contribute assets, take an immediate income tax deduction in the year of contribution, and recommend grants to qualified charities on your own timeline. The fund holds those assets between contribution and distribution, though investment values may fluctuate, giving you flexibility that a direct donation does not.

That separation between when you contribute and when grants go out is what makes DAFs one of the most adaptable charitable giving strategies available to high-net-worth families in 2026.

The Bunching Advantage

Bunching means consolidating two or more years of planned giving into a single large contribution in one tax year. Directing that contribution to a DAF lets you claim the full deduction now while spreading grants to your chosen charities over time at your own pace.

Depending on the family’s tax situation, bunching into a donor-advised fund may help contributions exceed the threshold and make itemizing more relevant in the contribution year.

Contributing Appreciated Securities

For some investors with significant unrealized gains, contributing appreciated securities directly to a donor-advised fund may be a tax-aware charitable giving strategy with tax advantages.

In certain situations, contributing securities held longer than one year may allow a deduction based on fair market value, subject to AGI limits, while potentially avoiding capital gains tax on the appreciation. In a year when a portfolio position has grown substantially, that combination is worth a careful look before any sale takes place.

Qualified Charitable Distributions from IRAs

The IRS allows individuals who are 70½ or older to transfer up to $111,000 directly from a traditional IRA to a qualifying charity in 2026. That transfer counts toward the required minimum distribution for the year, and the amount excluded from income does not appear on your return as taxable income at all.

No itemizing required. The tax benefit exists entirely outside the standard versus itemized deduction calculation, which is what separates QCDs from nearly every other giving method.

Why QCDs Work Especially Well in Retirement

Retiree charitable giving tax strategies often center on managing adjusted gross income, and QCDs reduce AGI at the source. That matters well beyond the charitable gift itself.

A lower AGI can reduce Medicare premium surcharges and decrease the percentage of Social Security benefits subject to income tax. For married couples in which both spouses hold IRAs and are 70½ or older, each may make a QCD of up to $111,000 from their own account — a combined potential income exclusion of $222,000 for the year.

Retirees who take the standard deduction still access the charitable giving strategies tax benefits a QCD provides, in a way that a direct cash donation cannot match.

Eligibility and Mechanics to Know

The distribution must transfer directly from the IRA custodian to the charity. If funds reach your account first, the gift no longer qualifies as a QCD under IRS rules — the direct transfer requirement is firm.

Donor-advised funds, private foundations, and supporting organizations do not qualify as QCD recipients — a detail that matters because many high-net-worth givers use DAFs for other parts of their charitable giving strategy. The gift must go to a public charity with active 501(c)(3) status. QCDs apply to traditional and inherited IRAs. Active SEP or SIMPLE IRAs with ongoing employer contributions are not eligible, so the account type matters before initiating any transfer.

Building a Charitable Giving Strategy Around Your Situation

QCDs, donor-advised funds, appreciated asset contributions, and bunching each serve different situations. The right charitable giving strategy depends on your income level, account types, how you file, and your giving timeline.

A retiree drawing from IRA accounts faces different decisions than a high-income family in peak earning years — and what works well in one situation may be the wrong structure in another. Giving structure and tax planning belong in the same conversation.

Tax planning involves considerations that may vary based on your individual circumstances. Consult a qualified tax professional for guidance specific to your situation. The advisors at Dechtman Wealth Management work alongside your CPA or tax professional to incorporate charitable giving strategies into a broader financial plan that reflects both how you want to give and how you want your tax picture to look.