2026 Year-End Tax Planning Guide

November 2, 2026

Dear Community Members:

As the year-end approaches, now is a good time to review your charitable giving plans with your tax, legal, and financial advisors. Several federal tax provisions affecting charitable giving are newly effective in 2026 and may affect the timing and form of your charitable gifts.

All of us at the Oregon Jewish Community Foundation and the Jewish Federation of Greater Portland are grateful for your continued generosity and commitment to each of our missions of building and sustaining our vibrant community. Every contribution and grant recommendation makes a meaningful difference. Thank you.

Charitable Giving and Tax Planning Considerations for 2026

New Limitations on Charitable Deductions for Itemizers. Beginning in 2026, individuals who itemize deductions generally may deduct charitable contributions only to the extent those contributions exceed 0.5% of adjusted gross income. Because this threshold applies each year, donors may wish to consider whether combining several years of planned charitable contributions into a single year could increase the amount eligible for a charitable deduction. A donor advised fund can facilitate this strategy by allowing a donor to make a larger contribution in one year while recommending grants to charitable organizations over time.

Limitation for Taxpayers in the Highest Tax Bracket. For taxpayers in the 37% federal income-tax bracket, the value of itemized deductions, including charitable deductions, is generally limited to approximately 35 cents per deductible dollar. Donors who may be affected should discuss the timing and structure of their gifts with their tax advisors.

New Charitable Deduction for Non-Itemizers. Beginning in 2026, taxpayers who do not itemize deductions may deduct up to $1,000 of qualifying cash charitable contributions, or $2,000 for married couples filing jointly. Contributions to donor advised funds do not qualify for this particular deduction. This new provision allows some donors who take the standard deduction to receive a federal income tax benefit from qualifying charitable gifts.

Standard Deduction, SALT Deduction, and Deduction for Older Taxpayers. For 2026, the standard deduction is $32,200 for married couples filing jointly and $16,100 for single taxpayers. The state and local tax, or SALT, deduction limit is $40,400 for 2026 ($20,200 for married taxpayers filing separately). The SALT cap begins to phasedown when modified adjusted gross income exceeds $505,000 ($252,500 for married taxpayers filing separately), but not below $10,000 ($5,000 for married taxpayers filing separately), so that the cap is $10,000 for taxpayers with modified adjusted gross income at or above $606,333 ($5,000 for married taxpayers filing separately with modified adjustment gross income at or above $303,167.) Taxpayers age 65 and older may also be eligible for a new deduction of up to $6,000 per eligible individual through2028, subject to an income phaseout. Because taxpayers generally choose between the standard deduction and itemizing deductions, donors should consider their charitable gifts together with deductible state and local taxes and other itemized deductions. In some circumstances, charitable contributions may help increase total itemized deductions above the standard deduction, making the timing or bunching of charitable gifts more important.

Consider Gifts of Appreciated Assets. Donors who own appreciated securities, real estate, or other appreciated property, particularly assets held for more than one year, may wish to consider contributing the asset rather than selling it and donating the proceeds. Donating appreciated property may provide charitable and capital-gains tax advantages, depending on the asset and the donor's circumstances. Federal tax rules generally permit deductions for donated property based on fair market value, subject to applicable limitations and substantiation requirements.

Consider a Qualified Charitable Distribution. Donors age 70½ or older may be able to make a qualified charitable distribution, or QCD, directly from an IRA to an eligible charity. A QCD is excluded from gross income rather than claimed as an itemized charitable deduction and therefore may be particularly attractive under the new charitable deduction rules.

The QCD limit for 2026 is $111,000 per eligible IRA owner, increased from $108,000 in 2025. QCDs can also count toward an individual's required minimum distribution when applicable. Donor advised funds and supporting organizations generally cannot receive QCDs.

Split-Interest QCD Option. Under the SECURE 2.0 Act, an eligible IRA owner may also make a once-in-a-lifetime QCD of up to $55,000 in 2026 to fund a qualifying charitable gift annuity or charitable remainder trust that pays income for life. This amount counts toward the $111,000 annual QCD limit. OJCF is prepared to discuss or facilitate these options with donors and their professional advisors.

This 2026 Year-End Tax Planning Letter is based in part on information provided by the Jewish Federations of North America. If you have questions or would like to discuss your charitable plans, please contact OJCF or JFGP.

The Oregon Jewish Community Foundation and the Jewish Federation of Greater Portland do not provide investment, legal, accounting, or tax advice. Nothing in this letter is intended, or shall be construed, as such advice. Please consult with your professional advisors regarding the matters described in this letter before making any tax planning, charitable, or investment decisions.

Enjoy your holiday season,

OREGON JEWISH COMMUNITY FOUNDATION

JEWISH FEDERATION OF GREATER PORTLAND