As tax regulations evolve, the One Big Beautiful Bill Act (OBBBA) and the IRS’s 2026 inflation adjustments introduce notable changes to charitable giving. These updates emphasize the importance of how individuals time and structure their donations, whether they choose to itemize or opt for the standard deduction. Two specific rules align particularly well with contributions made through Delco Gives.
Important Changes in Charitable Deduction Rules
Similar to previous years, only itemizing taxpayers can deduct charitable contributions. If itemized deductions do not surpass the standard deduction, no additional tax advantages from charitable gifts are realized.
However, starting in 2026, taxpayers who do not itemize can claim an above-the-line charitable deduction of up to $1,000 for individuals and $2,000 for married couples filing jointly for cash donations to eligible charities. This deduction reduces income before the adjusted gross income (AGI) is calculated, offering a significant benefit. Note that this provision excludes non-cash gifts and certain vehicles, such as donor-advised funds (DAF), from eligibility. Nonetheless, this rule opens new planning possibilities for households traditionally seeing no tax impact from their donations.
This is where Delco Gives becomes particularly advantageous. Since the new deduction is applicable to cash donations to operating charities — not DAF contributions — a direct gift through delcogives.org qualifies. For those using the standard deduction, contributing via delcogives.org is a straightforward method to support local causes while gaining the new tax benefit.
Consider IRA Contributions if Over 70½
Under the new rules, Qualified Charitable Distributions (QCD) might become even more valuable. Individuals aged 70½ or older can use QCDs to channel funds from their IRA to specific charitable funds at the Foundation or to any participating nonprofits under Delco Gives. The 2026 annual limit for QCDs is set at $111,000 per taxpayer, permitting substantial transfers to charity without the distributions being counted as taxable income. Additionally, QCDs can satisfy required minimum distributions for eligible individuals.
QCDs are not impacted by the new itemized deduction floor or the cap on itemized deductions, making them an efficient strategy for many retirees. Since QCDs must be directed to operating charities and not a DAF, Delco Gives is once again a suitable option — allowing IRA funds to be directed towards any of the numerous participating nonprofits.
For those considering these strategies for their charitable endeavors, consultation with tax and financial advisors is recommended to tailor the approach to specific circumstances.
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