Seven Smart Strategies for Year-End Giving in 2026

The end of the year is a natural time to reflect on what matters most: the people and places you care about, the organizations making a difference in our community, and the legacy you hope to create.

Thoughtful charitable planning can help you make an even greater impact while taking advantage of available tax and financial benefits. Here are seven ideas to consider as you plan your year-end giving.

1. Start with the simplest way to give

Cash is often the easiest way to give. If you itemize, cash gifts to qualified public charities may generally be deductible up to 60% of your adjusted gross income (AGI), subject to applicable limitations.

And there's something new in 2026: even if you don't itemize, individuals may be able to deduct up to $1,000 in qualifying cash gifts, or $2,000 for married couples filing jointly.

Cash may be simple, but before writing a check, consider whether another asset could offer greater tax advantages.

2. Make more of the assets you already own

Have stock that has grown significantly in value? Appreciated securities held for more than one year can be a particularly tax-efficient way to give.

By donating the stock directly rather than selling it first, you may avoid capital gains tax on the appreciation and, if you itemize, qualify for a charitable deduction based on the asset's fair market value, subject to applicable limitations.

The Community Foundation can accept publicly traded securities and can also help explore gifts of real estate and other assets that may be turned into charitable dollars.

3. Plan today, give over time.

A donor-advised fund (DAF) can help you be thoughtful and flexible about your giving. You can establish a fund with a gift of cash or appreciated securities, receive a charitable deduction if eligible, and then recommend grants over time to the organizations and causes you care about.

The Community Foundation can help you learn about local needs and opportunities, connect with effective nonprofits, and make grants that reflect the impact you want to have.

Already have a donor-advised fund with us? Year-end is a good time to replenish your fund. New contributions of cash, appreciated securities or other eligible assets may qualify for a new charitable deduction, while adding resources you can use for grantmaking in the years ahead.

For some donors, “bunching” several years of charitable contributions into a DAF in a single year may also provide greater tax benefits under the new 2026 charitable deduction rules—while allowing you to continue your giving on your own timetable.

4. Create income while giving back

A charitable gift annuity (CGA) can combine your charitable goals with financial planning. In exchange for your gift, you receive fixed payments for life for yourself and/or another person and may qualify for an immediate charitable income tax deduction.

Sample One-Life CGA Rates

Current in 2026

A CGA can be an appealing way to supplement retirement income while creating a lasting charitable legacy.

5. Make your IRA part of your giving plan

If you are age 70½ or older, you may make a Qualified Charitable Distribution (QCD) directly from your IRA to an eligible charity.

A QCD is generally excluded from taxable income and can count toward your required minimum distribution (RMD), if one is due.

The 2026 QCD limit is $111,000 per individual. QCDs cannot be made to donor-advised funds but may be contributed to any of our other funds, such as scholarship funds, Greatest Needs, Friends of the Foundation, and can be used to create new grantmaking funds.

6. Turn IRA assets into lifetime income

IRA owners age 70½ or older also have a one-time opportunity to use a QCD to establish a new charitable gift annuity.

In 2026, up to $55,000 can be transferred from an IRA for this purpose. The transfer can count toward an RMD, if one is due, while creating lifetime payments for you and/or your spouse.

This can be an especially interesting option for donors who would like to use retirement assets to support their charitable goals while retaining an income stream.

7. Create an impact that lasts

Planning to sell appreciated real estate, a business, or another significant asset? Or thinking about the legacy you want to leave?

A charitable remainder trust (CRT) can turn highly appreciated assets into an income stream for you or others while ultimately creating a charitable gift. Gifts through your will, trust, or beneficiary designations can also support the organizations and community you love for generations to come.

Talk with us before you sell. Charitable planning involving appreciated assets generally needs to happen before entering into a binding agreement for sale.

What's New in 2026?

A new deduction for non-itemizers.
Taxpayers who take the standard deduction may deduct up to $1,000 in qualifying cash gifts, or $2,000 for married couples filing jointly, to qualifying charities. Certain gifts, including contributions to donor-advised funds, don't qualify for this deduction.

A new rule for top earners.
For taxpayers in the 37% federal income tax bracket, the tax benefit of itemized deductions is generally limited to 35%.

A new charitable deduction floor.
For taxpayers who itemize, charitable contributions generally become deductible only to the extent total contributions exceed 0.5% of AGI. Bunching multiple years of charitable giving into one year may help some donors receive a greater tax benefit.

The 2026 standard deduction.
The standard deduction is $16,100 for single filers and $32,200 for married couples filing jointly.

Could This Be You?

Are you…

• Holding stock that has increased significantly in value?
• Age 70½ or older with an IRA?
• Taking a required minimum distribution?
• Expecting an unusually high-income year?
• Planning to sell real estate, a business or another appreciated asset?
• Interested in creating additional lifetime income?
• Thinking about your legacy in Santa Cruz County?

Before you make your year-end gift, let's talk. A conversation with the Community Foundation and your professional advisors may uncover opportunities you haven't considered.

Your Year-End Giving Checklist

• Review your giving. Consider what you have given so far and what you still hope to accomplish in 2026.
• Choose the right asset. Cash may be easiest, but appreciated assets can sometimes provide greater tax advantages.
• Consider timing. Stock, real estate, trusts and other non-cash gifts can take additional time to complete.
• Talk with your advisors. Your tax, legal and financial advisors can help determine how charitable giving fits into your overall plans.
• Contact us early. We can answer questions, provide transfer instructions and work alongside you and your advisors to help complete your gift.

Your Trusted Partner in Local Philanthropy

At Community Foundation Santa Cruz County, we believe charitable planning begins with listening: What do you care about? What do you want your generosity to accomplish?

Our local knowledge and charitable expertise can help you find giving strategies that reflect your values and create meaningful impact here at home and beyond. We are happy to work alongside you and your professional advisors—you don't need to have all the answers before you call.

Together, we can turn your generosity into lasting impact.

This information is provided for educational purposes only and is not intended as legal, tax or financial advice. Please consult your professional advisors regarding your individual circumstances.