The Holiday Season is the Season of Giving, but often the logistics behind our philanthropic intent can be complicated and time-consuming. And with so many worthy recipients, even deciding where to give our resources can be a daunting task. But we don’t let that stop us. Americans’ charitable giving totaled $617.2 billion in 2025 according to the Giving USA Foundation™ 2026 Annual Report, with 64% of those contributions coming from individuals just like you and me. Giving from the heart and to causes you feel personally called to support is a worthy endeavor. This year, new federal tax rules also make planning ahead more important than usual. Here are a few helpful tips to make your charitable giving more impactful:
Pro Tip No. 1: Understand the tax rules.
Federal charitable giving rules changed on January 1, 2026. Here is what to know:
- If you itemize: Only charitable gifts above 0.5% of your adjusted gross income (AGI) are deductible. For example, with an AGI of $300,000, the first $1,500 of gifts would not produce a deduction.
- If you take the standard deduction: You may now deduct up to $1,000 in cash gifts ($2,000 if married filing jointly). The deduction applies to gifts made directly to qualifying charities, not to gifts to a donor advised fund (DAF).
- If you are in the top tax bracket: The tax value of your charitable deductions may be limited to 35 cents on the dollar.
- Bunching: Because of the 0.5% floor, some donors combine several years of giving into a single year, often through a DAF, to clear the floor and maximize the deduction.
Everyone’s tax situation is different, so please talk with your Willow Creek advisor or CPA before making year-end gifts.
Pro Tip No. 2: Choose the right giving vehicle.
Writing a check isn’t the only way to give. Several giving vehicles can offer more flexibility and tax benefits, depending on your situation. One easy way is to set up a Donor Advised Fund (DAF). If you itemize, DAFs allow you to reap the tax benefits in the year of your gift while passing the cash to the charity based on your own schedule in future years. You can use appreciated assets (stocks, mutual funds, etc.) and avoid paying tax on those gains. (Consult with your financial advisor or CPA for specifics).
If you are 70½ or older, a qualified charitable distribution (QCD) from an IRA sends money directly to charity and is excluded from your income. The 2026 limit is $111,000 per person. A charitable remainder trust (CRT), which pays you income for a period before the remainder goes to charity, is another option to explore with your advisor for larger or highly appreciated gifts.
Pro Tip No. 3: Do a little research.
There are many resources offering valuable insight into the way charitable organizations spend their donated dollars—some are much better than others in terms of how effectively they put donations to work. Administrative costs are only one part of the picture, so look at results and transparency, too. If you want to know more about how your donation is being used, you can dig a little deeper using a site such as Charity Navigator, Candid (formerly GuideStar), or Wise Giving Alliance to see how a nonprofit is rated and how it uses its funding.
Pro Tip No. 4: What impact will your donation make?
Will it be a drop of water in the ocean, or will it make a significant difference where you want it to? Consider giving to smaller or underfunded charities working on causes you care about. Well-known organizations tend to attract more attention and donations, so your gift can make an outsized difference where resources are scarce. Ask a charity how it is funded and where its biggest gaps are.
Pro Tip No. 5: Don’t micromanage.
Telling a charitable organization that you want your gift to go to a specific area can handcuff the nonprofit. If you’ve chosen a great charity to share your resources with, trust them to solve the problem.
Pro Tip No. 6: Help the charity help themselves.
Ask the organization how they prefer their donation to be given. Challenge grants, where the charity can leverage your donation with matching grants, can sometimes multiply the impact of a straight donation.
Pro Tip No. 7: Develop a personal giving plan.
Many people give a percentage of their earned income each year to charity. Whether it is a percentage or a flat dollar amount, making a commitment at the beginning of the year can help you with your decisions. Start with the causes you want to support (arts, education, etc.), then narrow it down by location (community, national, international, etc.) and finally find the best charity whose mission meets those goals.
Pro Tip No. 8: Family philanthropy.
Share the joy of giving with your children, and even your grandchildren! Whether you volunteer at the Food Bank or donate money to the United Way, explain why you do these things. You can build a “team spirit” by choosing a charity together, as well as learn financial accountability by budgeting for donations. Be a role model for your entire family and show why these values are so important in your lives.
If you would like to talk through how the new rules apply to your giving, please reach out to your Willow Creek advisor.
Happy Holidays and Happy Giving!
This article is for general informational purposes only and is not tax or legal advice. Please consult your tax professional about your specific situation.