What's New for 2026: Updates that May Shape Your Donor-Advised Fund Giving
Several IRS updates for 2026 could influence how you plan your giving, both through your donor advised fund and with other types of charitable gifts. Here’s a quick guide to the changes most relevant to charitable giving:
Higher Standard Deductions: The standard deduction for 2026 has increased to $16,100 for single filers and $32,200 for married couples filing jointly.
Why this matter for DAF holders: Contributions to your donor advised fund are eligible for an immediate charitable deduction in the year you make them. Because the standard deduction is higher in 2026, the choice between itemizing deductions or taking the standard deduction is especially important. Some fundholders choose to “bunch” several years of DAF contributions into one tax year to exceed the standard deduction and maximize their tax benefit – then recommend grants from their DAF over time.
Changes to Tax Brackets: Tax rates remain at 10%-37%, but changes taking effect in 2026 under the One Big Beautiful Bill Act introduce a 0.5% floor on itemized charitable deductions and a 35% cap for high-income itemizers.
Why this matter for DAF holders: If your income places you in a higher tax bracket or changes your expected liability, it can affect the value you receive from a charitable deduction. Because contributions to your donor advised fund are deductible in the year they’re made, some donors adjust the timing and size of their gifts to align with years when itemized deductions provide the greatest benefit - helping them make the most of today’s tax rules before any future changes.
Qualified Charitable Distributions (QCDs): The 2026 QCD limits are now $111,000 per taxpayer.
Why this matter for DAF holders: QCDs cannot be directed to a donor advised fund. However, they can support other types of funds at SCF – such as designated, field of interest, scholarship, or SCF’s special initiative funds. If you are age 70 ½ or older, QCDs offer a highly tax-efficient way to give, complementing your tax strategy.
New Deduction for Non-Itemizers: Starting in 2026, taxpayers who do not itemize may deduct up to $1,000 (single filers) or up to $2,000 (joint filers).
Why this matter for DAF holders: While these gifts cannot be made to donor advised funds, this new deduction may inspire younger family members, such as adult children, to begin their charitable journey. SCF offers several other fund types, outside of DAFs, including SCF’s Special Initiative Funds, that are eligible for these gifts as well as family learning opportunities to encourage next generation giving.
Social Security COLA increase: Beginning January 1, 2026, Social Security benefits increased to account for cost-of-living adjustments.
Why this matter for DAF holders: If you receive Social Security, the increase may offer more flexibility as you think about contributions to your DAF or grants you’d like to recommend this year. Many retired donors find that aligning their charitable planning with benefit changes helps them maintain a steady giving rhythm.
How SCF can support your giving in 2026: Whether you are considering a new contribution to your DAF, planning a multi-year giving strategy, or balancing your DAF with other charitable tools, we are here to help.
To learn more about tax-wise giving options and/or design a charitable giving plan, contact Melissa Van Diepen, Chief Philanthropy Officer at 209-576-1608 x104.