Smart Donor Strategies for 2026

November 4, 2026

As you make your year-end giving plans, here are some smart giving strategies to help make your giving plans to BCAN easier and smarter!

Securities

If you donate a stock held for more than a year directly to BCAN or to a donor-advised fund, you receive three major tax benefits:

1. Avoid capital gains taxes: You’ll avoid paying capital gains taxes on the stock appreciation (up to 20% federal plus 3.8% net investment income tax, plus state taxes)
2. Deduct full fair market value: You can immediately deduct the full fair-market value of the stock on your federal income tax returns for that year rather than just your cost basis
3. More to charity: Because the organization receiving the stock is a 501(c)(3), it doesn’t have to pay taxes on liquidating the stock, meaning the full amount goes to the organization you care about

This creates a double-win for your tax strategy and BCAN!

Gifts From Your IRA

The law allowing taxpayers age 70 1/2 and older to make a Qualified Charitable Distribution (QCD) in the form of a direct transfer of up to $111,000 for individuals directly from their IRA over to a charity, including all or part of the required minimum distribution (RMD), was made permanent in 2015. If you meet the qualifications to utilize this strategy, the funds must come out of your IRA by December 31, 2026.

Itemized vs. Standard Deductions

For 2026 tax returns, the standard deduction is $16,100 for single individuals and married couples filing separately, $24,150 for heads of household, and $32,200 for married couples filing jointly and surviving spouses.

The Tax Cuts and Jobs Act (TCJA) roughly doubled the standard deduction back in 2017. Its goal was to decrease tax payments for many of those who typically claim this standard deduction. The OBBBA not only made this deduction increase permanent, but it also slightly increased the deduction amount.

For the 2026 tax year, the additional standard deduction for taxpayers who are age 65 or older, or blind, is $2,050 for unmarried individuals who are not surviving spouses and $1,650 per qualified person for married taxpayers and surviving spouses.

A new senior bonus tax deduction was made available starting in 2025 for eligible individuals aged 65 and older. This bonus deduction allows them to claim an additional deduction of up to $6,000, in addition to the standard deduction and the existing extra deduction for seniors. To fully benefit from the senior bonus, you must meet specific age and income requirements. You must be 65 or older by December 31 of the tax year. This deduction begins to phase out at a 6% rate for modified adjusted gross income (MAGI) above certain thresholds and disappears entirely at higher income levels.

For single filers, the full $6,000 deduction is available for MAGI up to $75,000. It phases out completely at $175,000. For married couples filing jointly, the total deduction can reach up to $12,000 if both spouses are 65+ and their MAGI is no greater than $150,000. It reduces and phases out completely at $250,000. It’s important to note that this new deduction is available regardless of whether you itemize deductions or take the standard deduction. Please note that it’s a temporary measure and is set to expire after the 2028 tax year.

Donor Advised Funds and “Bunching” Charitable Contributions

For taxpayers who are inclined to give to charitable organizations like BCAN, it’s wise to develop a strategic plan. One effective method to maximize the tax benefits of charitable contributions is known as “bunching.” This strategy involves consolidating donations and other deductible expenses into specific years, ensuring that your total deductions surpass the standard deduction for those years.

Another strategy is to consider using a donor-advised fund. A donor-advised fund, or DAF, is a philanthropic vehicle established as a public charity. It allows donors to make a charitable contribution, receive an immediate tax benefit, and then issue grants from the fund over time. Taxpayers can arrange their situation to take advantage of the charitable deduction when they’re in a higher marginal tax rate while actual payouts from the donor-advised fund can be deferred until later. You can now direct DAF gifts directly from the BCAN website which is a win-win situation!

Should you be interested in considering any of these strategies or would like additional information, please call or email BCAN’s VP, Development, Christina Todosow at [email protected] or 301-637-3981.