It’s the season of giving, the time of year when do-gooders get generous and tax pros occasionally get creative. That’s because donations to charities and other types of nonprofit organizations are tax-deductible.
Historically, though, most taxpayers don’t receive a tax break for their charitable giving. Other than for a brief period under Covid-19 relief legislation, taxpayers have generally had to itemize to take advantage of the deduction, but about 9 in 10 people take the standard deduction instead, according to the Internal Revenue Service.
But the rules around charitable deductions are changing. A provision in President Donald Trump’s so-called “big beautiful” bill, which passed in July, allows taxpayers who don’t itemize to deduct up to $1,000 for single filers and up to $2,000 for married couples filing jointly for tax year 2026.
So, for people thinking about writing a check to their favorite charity, it may make more sense, tax-wise, to wait until January to send it in, says Miklos Ringbauer, a certified public accountant and founder of accounting firm MiklosCPA.
“First and foremost, if they love to give, please give,” he says. “But if they are making a strategic move, and they’re not going to itemize for sure for 2026 tax year purposes, doing the charitable donation in 2026 does give them a benefit.”
When it makes sense to wait to donate
To be clear, if you plan to give to your favorite charity this holiday season, no one is telling you not to do it. Indeed, many tax pros would advise against upending your financial plans in the name of optimizing your tax return.
“There’s certainly a tax calculation, but there’s also just the the charitable intent. You potentially need to get money to an organization and you want to do that now,” says Stephen Eckert, practice leader at Plante Moran’s National Tax Office. “That can override some of this, potentially.”
But if a donation in January would do just as much good as one in December, you may be able to have an equal charitable impact while saving a few bucks, he says.
To get the new deduction, you’ll have to make a cash donation to a qualifying charitable organization — donations to political campaigns, crowdfunding efforts, private foundations and donor-advised funds are excluded.
Make sure to get a receipt for your gift; the IRS generally requires written acknowledgement of any donation in excess of $250.
And before making any moves for tax year 2026, you’d be wise to consider whether major life changes on the horizon will drastically change your tax situation, says Ringbauer. The IRS’s rules around charitable giving are different and more complicated for those who itemize deductions.
“That’s where your trusted financial advisor, your accountant, comes in,” Ringbauer says. “Sit down with them before year-end, go through what your scenarios are, and you can come up with a really good solution as to whether [a charitable tax strategy] benefits you or not.”
Want to give your kids the ultimate advantage? Sign up for CNBC’s new online course, How to Raise Financially Smart Kids. Learn how to build healthy financial habits today to set your children up for greater success in the future. Use coupon code EARLYBIRD for 30% off. Offer valid from Dec. 8 to Dec. 22, 2025. Terms apply.
Plus, sign up for CNBC Make It’s newsletter to get tips and tricks for success at work, with money and in life, and request to join our exclusive community on LinkedIn to connect with experts and peers.
