Beginning January 1, 2026, several significant federal tax law changes will reshape how individuals and families support the causes they care about. These updates create new opportunities for many donors—especially retirees and non‑itemizers—while also reinforcing the importance of thoughtful planning. As always, the Community Foundation of Howard County is here to help you navigate these changes with clarity and confidence.
🌱 Expanded Opportunities for IRA Qualified Charitable Distributions (QCDs)
Beginning in 2026, retirees will see a major expansion in the use of Qualified Charitable Distributions:
- Up to $111,000 may be directed as an outright QCD to qualified charities.
- Up to $55,000 may be used for a one‑time QCD election to fund a Charitable Gift Annuity (CGA) or Charitable Remainder Trust (CRT).
These expanded limits give donors age 70½ and older more flexibility to make meaningful gifts while reducing taxable income. For many, QCDs remain one of the most tax‑efficient ways to support the community.
💵 A New Deduction for Non‑Itemizers
For the first time in years, taxpayers who do not itemize will be able to claim a limited charitable deduction. Beginning in 2026:
- Single filers may deduct up to $1,000 in charitable cash gifts.
- Married couples filing jointly may deduct up to $2,000.
Gifts must be made in cash directly to public charities. Contributions to donor‑advised funds (DAFs) are excluded.
This new deduction is confirmed in multiple sources that outline the 2026 charitable giving changes.
This is welcome news for the many Howard County households who give generously but typically take the standard deduction.
📉 Additional 2026 Changes Affecting Itemizers
Several broader tax law changes also take effect in 2026:
- Itemizers may deduct charitable gifts only to the extent they exceed 0.5% of Adjusted Gross Income (AGI).
- High‑income taxpayers will see the value of their charitable deductions capped at 35%.
These changes may influence the timing and structure of larger gifts, especially for donors who give consistently or at higher levels.
🎁 CGA Rates Remain Steady
The American Council on Gift Annuities (ACGA) has announced that its suggested maximum annuity rates published January 1, 2024 will remain active.
This stability provides donors with continued predictability when considering a charitable gift annuity—especially in light of the new QCD‑to‑CGA option beginning in 2026.
🕊️ What This Means for Howard County Donors
These updates create both opportunities and considerations:
More donors will benefit from giving.
The new non‑itemizer deduction opens the door for thousands of local residents to receive a tax benefit for charitable giving—many for the first time.
Retirees gain powerful new tools.
The expanded QCD limits and the ability to fund a CGA or CRT directly from an IRA offer new ways to support the community while generating income or reducing taxable income.
Strategic planning matters more than ever.
Itemizers and high‑income donors may want to consider:
- Accelerating multi‑year gifts into 2025
- Bundling contributions into a single tax year
- Evaluating whether a DAF, CGA, or CRT best aligns with their goals
🤝 We’re Here to Help
Whether you’re exploring QCDs, planning a legacy gift, or simply trying to understand how these new rules affect you, the Community Foundation of Howard County is here to support you. Our team can help you make the most of your generosity—today and in the years ahead.
Together, we can ensure that philanthropy continues to thrive in Howard County.