Smart Ways to Give Before the Year Ends

You could benefit from several tax law changes that took effect this year. Consider the possibilities below when making decisions about your year-end giving.

NEW: The universal charitable deduction

Starting with this year’s return, you can give up to $1,000 (single filers) or $2,000 (married couples filing jointly) in cash and still receive a federal income tax charitable deduction—even if you don’t itemize. This means smaller donations can still benefit you as they make an impact at CARE. Note: Gifts to donor advised funds are excluded.
A strategy to consider: Take a moment to review your year-to-date cash contributions. If you haven't yet reached the $1,000 or $2,000 thresholds, a year-end gift to CARE is an easy way to maximize this tax benefit while advancing our mission.

Important reminder: If you prefer to mail your cash gift, please send it well before Dec. 31. Because of U.S. Postal Service processing changes, postmarks may be applied days after mail leaves your local post office. Mailing early—or visiting a post office counter—can help ensure your gift counts for your 2026 tax return.

NEW: Another deduction if you’re 65 or older

The standard deduction for 2026 is $16,100 (single) or $32,200 (married filing jointly). If you are 65 or older, you may claim a standard deduction that’s even higher: $2,050 more if you are a single filer and head of a household, $1,650 more per qualifying individual if you are married filing jointly or separately, or a qualifying widow(er).
But seniors may claim a new, additional deduction of up to $6,000 for an individual or $12,000 if married and both spouses qualify. Two things to note: This extra deduction is temporary—it lasts through the 2028 tax year—and it phases out for taxpayers with higher incomes, so discuss this with your tax professional or accountant.
A strategy to consider: If you claim the standard deduction, you might find it advantageous to explore options that provide other tax benefits, such as a gift of appreciated stock or a tax-free gift from your IRA.

NEW: A floor for itemizers

Starting with this tax year, you will need to give at least 0.5% of your adjusted gross income (often referred to as AGI) to claim a charitable deduction.
A strategy to consider: To exceed both the standard deduction and this new 0.5% threshold, some donors choose to “bunch” their giving. This involves combining multiple years of charitable contributions into a single tax year.

NEW: Cap for top earners

Previously, top earners got a 37-cent tax benefit for every dollar deducted. Starting this year, however, that drops to 35 cents.
A strategy to consider: Consider donating appreciated stock. This allows you to potentially eliminate capital gains taxes while still qualifying for an income tax charitable deduction. If you are 70½ or older, consider giving directly from your IRA.

Enduring and Impactful: Smart Giving Ideas to End Any Year

Make a gift from your IRA

If you are 70½ or older, you can give any amount up to $111,000 from your IRA directly to CARE. You will not pay income taxes on the transfer. This gift can also count toward any required minimum distribution (RMD).
Important note: Your IRA administrator must transfer the funds by Dec. 31. If you have check-writing features on your IRA, your check must clear your account by Dec. 31 to count toward your RMD for the calendar year.

You Can End 2026 on a High Note

For guidance on the best ways to leave a legacy at CARE as we approach the end of the year, reach out to Planned Giving Office at 1-800-752-6004 or plannedgiving@care.org. We are happy to help ensure that you realize the greatest benefit from your kindness.