Planful Acts of Kindness: Share the Love with Smart Tax Planning

The love you show for your community through supporting Homeless Solutions doesn’t change—but this Valentine’s – and tax – season, the One Big Beautiful Bill act may influence the timing and tools you use to express this generosity.

If charitable giving is part of your heartfelt plans, we’ve outlined key considerations to help maximize your impact, thanks to Sarah G. Townsend, Esq., an Associate in Schenck Price Smith & King, LLP’s Estate, Gift & Charitable Planning and Elder and Special Needs Practice Groups, and Chair of HSI’s Young Professionals Ambassador Council.

For contributors who “do not” itemize:

Great News!  The 2026 charitable giving landscape provides a new income tax deduction for non-itemizers up to $1,000 for single filers (or $2,000 for married couples filing jointly) if individuals make cash gifts. Consider becoming a monthly donor to your favorite charity and maximize this tax benefit today. Gifts to donor-advised funds (DAF’s) do not count for this deduction.

For contributors who itemize their deductions:

Individuals will now need to donate at least 0.5% of such taxpayer’s adjusted gross income (AGI) to claim the donations as itemized deductions, but after satisfying this “floor,” donors who itemize will have the ability to deduct cash contributions up to 60% of the taxpayer’s AGI to public charities (including DAFs). 

For the highest-income filers:

It is important to note that income taxpayers in the 37% federal income tax bracket will face a limit on the tax benefit of a charitable deduction (now capped at 35% of the contribution).           

Qualified Charitable Deduction – Donors age 70 ½+:

IRA owners (age 70 ½ or older) can make a qualified charitable distribution (QCD) directly from an IRA to a qualified charity, like Homeless Solutions, whereby they can exclude up to $111,000 (the 2026 annual limit) from their individual gross income. The contribution can even count toward the individual’s required minimum distribution if they are age 73 or older.

In addition, the Federal estate and gift tax exemption increased to $15 million per person in 2026.

If you are looking for a way to make a bigger impact at the charities you care about, consider refreshing your affairs today through estate, gift and tax planning. This a great opportunity for you to revisit your estate planning and prepare a strategy to maximize the current tax environment while supporting your favorite organizations. 

Let your heart guide your generosity—and let smart planning amplify it, ensuring every dollar of your love for our community reaches those who need it most.