Did you Know: Charitable Deduction Update

We’re not typically ones to post about tax code. Our world is composed more of youth mental health and connection, tasty snacks and exciting field trips. But when

there is an update to the tax code that encourages charitable giving,

now that’s our style!

*Also, please note, we are not tax experts! We are simply sharing an update that could positively impact nonprofits throughout our area, so please consult a tax professional to verify how this could impact you and your giving. 

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In past years, itemizing your deductions was required in order to claim a charitable contribution deduction. Starting in tax year 2026, taxpayers who do not itemize might still be able

to deduct charitable contributions!

Individuals may be able to claim up to $1,000 in cash donations, and married couples filing jointly could claim up to $2,000. 

In the simplest of terms, this means that all contributions can now be claimed on your taxes, encouraging giving at any level to the causes you hold dear. 

You can maximize your charitable tax breaks in a variety of other ways as well:

• Qualified charitable distributions: If you’re age 70 ½ or older, you can transfer up to $100,000 (or a total of $200,000 for joint filers) directly from your IRA to a qualified charitable organization without paying any tax! Because distributions done this way are not subject to federal tax, it’s like contributing with pre-tax dollars. Plus, your contribution counts as a required minimum distribution for tax purposes. 

• Appreciated securities: Donate appreciated property (like securities) to a qualified charity and you can deduct the current fair market value of the property if you’ve owned them longer than a year. This is a great strategy if you are close to or over the itemized deduction threshold in a given year. 

• Bunching donations: Under current tax law, the standard deduction is more than double the historic rates. As a result, it now makes sense to “bunch” large gifts of property in a tax year in which you expect to itemize. Conversely, if you don’t anticipate itemizing in the current tax year, you may consider postponing donations into the next year. This idea aims to maximize tax deductions over a multiyear period. 

• Consider a donor advised fund: Use this idea in conjunction with tips 2 and 3. With this, you create a Donor Advised Fund. You then donate appreciated assets (stocks) into the fund. You donate enough in one year to exceed the standard deduction for that year. You then donate your funds out of the DAF over the years. While the money is no longer yours, you still control which qualified charities receive it. 

This feels like an appropriate time to remind you that at the beginning of 2026, LIFT became its own 501(c)(3) nonprofit organization!

From 2017 to 2025, LIFT operated as a program of the Friendship Community Center in Suttons Bay, and in that time, grew to have a home in all four public school districts within Leelanau County. 

Our afterschool and out-of-schootime programs now serve more than 765 Leelanau County middle and high school students at no-cost, all year round. The support of individual donors has always made this impact possible. In addition to district partnerships, individual contributions are key in allowing us to scale county-wide and to keep our programs no-cost and barrier-free for all Leelanau County families. 

With these updates and tips in mind, we hope you feel inspired and more confident to help us support the next generation of Leelanau County youth. Give today!