As taxes may already be on your mind, it might be a good time to consider how tax rule changes for 2026 can affect your giving this year (and your filing next year). Due to one change, in particular, some donors may be eligible for a charitable deduction even if they choose to take the standard deduction.
According to the IRS, 87% of tax filers take the standard deduction. Starting in 2026, a new federal tax rule will allow taxpayers who take that standard deduction to also claim a separate deduction for their charitable giving. This strategy is known as taking an “above-the-line” deduction, meaning this deduction is in addition to (or “above the line” of) the standard deduction. It will provide a great number of tax filers an extra reason to support their favored nonprofits.
With this new rule, even if you don’t itemize on your taxes, you’ll be able to deduct up to:
- $1,000 in cash donations (for individuals) *
- $2,000 in cash donations (for married couples filing jointly) *
This policy is similar to the temporary allowance provided during the pandemic. The recent tax code changes brought it back and bigger than ever!
* Donors should consult their tax advisor to review their own financial situation and to go over any applicable IRS rules and restrictions.
Need to take an RMD? Consider a QCD!
If you need to take a Required Minimum Distribution (RMD) from your retirement account, making a Qualified Charitable Distribution (QCD) may be a great call!
If 2025 was the first tax year you were required to take an RMD, you still have time to do it, and you may find a Qualified Charitable Distribution (QCD) to be a great option. With a QCD. you can have a distribution sent directly from your retirement custodian to NSRWA as a donation, and that distribution amount does not count as income to you.
Generally, if you turned 73 in 2025, your first RMD (for 2025) would be due no later than April 1, 2026. A second distribution (for 2026) would be due by December 31, 2026. Subsequent RMDs would be due by December 31st each year. Find out more about QCDs here.
Plan to talk to your tax advisor about how you might maximize the impact of your charitable giving while potentially benefitting from QCDs, above the line deductions, and other favorable tax strategies!