The Illinois CPA Society offers these tax-smart ways to donate to charities this holiday season.

CHICAGO, Nov. 9, 2026 – The holidays are quickly approaching, meaning gift-giving season is nearly here. As you consider your year-end charitable donations, remember there are a few tax-savvy ways to give a charitable gift while gifting yourself a tax break in return.

1. Take Advantage of the New Charitable Deduction for Non-Itemizers: Under H.R. 1, also known as the One Big Beautiful Bill Act enacted in 2025, a new charitable deduction is available for non-itemizers, meaning taxpayers who won’t claim the standard deduction for the 2026 tax year. Up to $1,000 of qualifying cash contributions ($2,000 for married couples filing jointly) made during the 2026 calendar year can be deducted, reducing your taxable income but not your adjusted gross income (AGI). Gifts to donor-advised funds and supporting organizations don’t qualify.
   
   
2. Gift Appreciated Investments: Donating appreciated investments held for more than one year, such as stocks, mutual funds, or other securities, directly to an eligible public charity can provide a substantial tax advantage. When itemizing tax deductions, you may generally claim a deduction based on fair market value, subject to the 30% AGI ceiling, the new 0.5% AGI floor, and other applicable limits, while avoiding capital gains tax on the appreciated investments. This strategy can be especially useful in 2026 for taxpayers who bunch their charitable donations to exceed the new charitable deduction threshold (0.5% of AGI) when itemizing deductions. Taxpayers should also compare their total allowable itemized deductions against their standard deduction to determine which method is more advantageous. Be sure to check with your broker about year-end transfer deadlines.
   
   
3. Consider Starting a Donor-Advised Fund (DAF): If you donate to charity regularly, a DAF offers flexibility and a strong tax benefit. A DAF allows you to consolidate several years’ worth of charitable giving into a single contribution, potentially increasing the charitable deduction for 2026 if itemizing deductions, subject to the 0.5% AGI floor, and other applicable limits. While contributions to a DAF don’t qualify for the new charitable deduction for non-itemizers, they remain an excellent tool if you plan to itemize deductions and spread out your charitable giving over time.
   
   
4. Make a Qualified Charitable Distribution (QCD): A QCD allows individuals who are at least age 70½ when the distribution occurs to make charitable gifts directly from an individual retirement account (IRA) to an eligible charity. For 2026, the QCD limit is $111,000 per eligible individual (up to $222,000 for a married couple if each spouse qualifies and makes distributions from their own IRA). A qualifying QCD can count toward required minimum distributions while remaining excluded from income. No additional charitable deduction is allowed for the excluded amount.

If you need help making sense of the complexities of charitable giving and the potential tax impact on you, a CPA—a certified public accountant—can help. And when tax time rolls around, a CPA can help prepare and file your tax return to ensure all eligible credits and deductions available are maximized.

The Illinois CPA Society’s free “Find a CPA” directory can help you find the trusted, strategic tax advisor that’s right for you. Find your CPA at www.icpas.org/findacpa.