A Note on Tax-Smart Giving in 2026
Recent changes under the One Big Beautiful Bill Act (OBBBA) may affect how charitable gifts are treated this year. For some donors, this creates new opportunities to give in ways that protect more of what you’ve worked so hard to build.
As you reflect on your year-end or long-term plans, here are a few options that may be worth exploring:
- Charitable Tax Deduction for Donors Taking the Standard Deduction
- Beginning this year, taxpayers who take the standard deduction may also be eligible for a charitable deduction.
- Qualified Charitable Distribution (QCD)
- If you are age 70½ or older, you ay give directly from your IRA, a simple and powerful way to support our mission. For those age 73+, a QCD can satisfy your Required Minimum Distribution (RMD) and prevent that distribution from being taxed as ordinary income.
- Donor-Advised Fund (DAF)
- With thoughtful planning, a DAF can help address deduction limitations (including the new $2,000 annual deduction reduction) while allowing you to recommend grants over time in a way that reflects your values.
- Other Planned or Legacy Gifts
- Gifts of appreciated assets, beneficiary designations, and other strategies may offer meaningful tax advantages while strengthening your long-term impact.
Every donor’s circumstances and goals are different. If you’d ever like to explore options that align with your values, family priorities, and financial plans, we would be honored to serve as a resource. Because every situation is unique, we always encourage you to consult with your trusted tax or financial advisor when considering any charitable gift.
Let’s talk. For a confidential conversation: development@catholiccharitieshawaii.org 808-527-4820
