7 Critical Charitable Giving Tax Planning Strategies After OBBBA for Martin County Donors in 2026

Why Charitable Giving Tax Planning Demands a Fresh Approach in 2026

If you are a generous donor in Martin County — or anywhere in Florida — charitable giving tax planning just became significantly more complex. The One Big Beautiful Bill Act (OBBBA), signed into law in 2025, preserves and extends many provisions from the 2017 Tax Cuts and Jobs Act while introducing new wrinkles that directly affect how charitable gifts translate into tax benefits.

For high-net-worth individuals, business owners, and professional athletes who call the Treasure Coast home, understanding these changes is not optional. The difference between a well-structured giving plan and an ad-hoc approach can be tens of thousands of dollars in tax savings annually.

This guide walks through the seven most important strategies Martin County donors should consider in 2026, explains the key OBBBA provisions, and outlines a framework for aligning generosity with smart tax management. Consult a qualified tax professional for your specific situation before implementing any strategy discussed here.

Understanding the OBBBA Provisions That Affect Charitable Giving Tax Planning

The Extended Standard Deduction and Its Impact on Charitable Giving Tax Planning

One of the most consequential aspects of OBBBA for charitable donors is the continuation of the nearly doubled standard deduction. For 2026, the standard deduction is projected to remain approximately $30,000 for married filing jointly and $15,000 for single filers (indexed for inflation).

Why does this matter? Because the elevated standard deduction means fewer taxpayers itemize — and you must itemize to deduct charitable contributions. According to the IRS inflation adjustments, roughly 90 percent of filers now take the standard deduction. That is a dramatic shift from the pre-2018 era when about 30 percent itemized.

For many Martin County donors, this creates a planning gap: you may be giving generously, yet receiving zero additional tax benefit because your total itemized deductions do not exceed the standard deduction threshold.

Key OBBBA Changes That Reshape Deduction Strategies

Beyond the standard deduction extension, several OBBBA provisions influence charitable giving tax planning:

• State and Local Tax (SALT) Deduction Cap: The $10,000 SALT cap remains in place. While Florida has no state income tax, donors with property in other states or significant property taxes should account for this limit when calculating total itemized deductions.
• AGI Limitation Thresholds: Cash contributions to public charities continue to be deductible up to 60 percent of adjusted gross income (AGI). Contributions of appreciated assets remain limited to 30 percent of AGI.
• Estate and Gift Tax Exemption: OBBBA extends the elevated estate tax exemption, projected at approximately $14.2 million per individual for 2026. This affects how charitable giving interacts with estate planning, particularly for ultra-high-net-worth families.
• Qualified Charitable Distribution (QCD) Rules: The QCD limit, indexed for inflation, rises to approximately $105,000 per individual for 2026. A one-time QCD to a split-interest entity remains available at $53,000.

7 Critical Charitable Giving Tax Planning Strategies for 2026

With the OBBBA landscape in focus, here are seven strategies that Martin County donors should evaluate. Each addresses a specific challenge or opportunity created by the current tax framework.

Strategy 1: Bunching Charitable Contributions to Maximize the Itemized Deduction

Bunching is arguably the single most powerful charitable giving tax planning tactic in the post-OBBBA era. The concept is straightforward: instead of spreading charitable gifts evenly across multiple years, you concentrate two or more years of giving into a single tax year.

Here is how it works in practice:

1. Year 1 (bunching year): Make two to three years’ worth of charitable contributions. Combined with mortgage interest, SALT (up to $10,000), and other deductions, your total itemized deductions exceed the standard deduction — often significantly.
2. Year 2 (standard deduction year): Make minimal or no additional charitable gifts and claim the standard deduction.
3. Repeat the cycle.

Example: A married couple in Stuart who normally gives $20,000 per year to charity might instead give $60,000 in Year 1 and nothing in Years 2 and 3. In the bunching year, their itemized deductions could reach $75,000 or more, creating substantial tax savings compared to claiming the standard deduction three years in a row.

Strategy 2: Using a Donor-Advised Fund for Charitable Giving Tax Planning Flexibility

A donor-advised fund (DAF) is the ideal companion to a bunching strategy. When you contribute to a DAF, you receive the tax deduction in the year of the contribution — but you can recommend grants to your favorite charities over many years.

Key DAF benefits include:

• Immediate deduction: The full contribution is deductible in the year you fund the DAF.
• Tax-free growth: Assets inside the DAF can be invested and grow without triggering capital gains.
• Flexible grant-making: Distribute to qualified charities on your own timeline — monthly, quarterly, annually, or as needs arise.
• Low minimums: Many DAF sponsors, including major custodians like Fidelity Charitable and Schwab Charitable, allow initial contributions as low as $5,000.

For Martin County donors who support local organizations like the United Way of Martin County, Treasure Coast Food Bank, or the Elliott Museum, a DAF ensures your giving cadence stays consistent even when your tax deduction is concentrated into specific years.

Strategy 3: Donating Appreciated Securities Instead of Cash

This remains one of the most tax-efficient charitable giving tax planning moves available — and it is underutilized. When you donate publicly traded stock, mutual fund shares, or ETFs that have been held for more than one year, you:

• Avoid capital gains tax on the appreciation.
• Deduct the full fair market value of the asset (subject to the 30 percent AGI limit).

Consider this comparison:

Scenario	Donate Cash ($50,000)	Donate Appreciated Stock ($50,000 FMV, $20,000 basis)
Charitable Deduction	$50,000	$50,000
Capital Gains Tax Avoided	$0	Up to $7,140 (23.8% on $30,000 gain)*
Net Tax Benefit (37% bracket)	$18,500	$25,640
Effective Cost of $50K Gift	$31,500	$24,360

*Includes 20% long-term capital gains rate plus 3.8% net investment income tax for high earners. Actual rates depend on individual circumstances.

For executives and athletes with concentrated stock positions or significant portfolio gains, this strategy can be transformative. Work with your advisor to identify the most highly appreciated lots for donation. Our comprehensive wealth management services regularly help clients identify these opportunities.

Strategy 4: Qualified Charitable Distributions for Donors Over 70½

If you are 70½ or older and have an IRA, the qualified charitable distribution (QCD) is a powerful — and often overlooked — charitable giving tax planning tool. A QCD allows you to transfer up to approximately $105,000 directly from your IRA to a qualified charity in 2026.

The tax advantages are compelling:

• The distribution satisfies your required minimum distribution (RMD) for the year.
• The QCD amount is excluded from your taxable income — it never shows up as income on your return.
• You benefit even if you do not itemize deductions.

This last point is critical. Because QCDs reduce your adjusted gross income rather than adding an itemized deduction, they work perfectly alongside the standard deduction. For retirees in Martin County who take the standard deduction, this is often the single best way to give charitably with tax efficiency.

The IRS provides detailed QCD rules in their IRA FAQ section. Note that QCDs cannot be directed to donor-advised funds or private foundations.

Strategy 5: Charitable Remainder Trusts for Large, Concentrated Positions

For Martin County donors with substantial wealth — particularly those holding concentrated stock, real estate, or business interests — a charitable remainder trust (CRT) offers sophisticated charitable giving tax planning benefits:

1. Immediate partial tax deduction based on the present value of the charitable remainder interest.
2. No immediate capital gains tax when appreciated assets are contributed to and sold within the trust.
3. Income stream paid to you (or designated beneficiaries) for life or a term of years.
4. Remaining assets pass to charity at the end of the trust term.

CRTs come in two primary forms: charitable remainder annuity trusts (CRATs), which pay a fixed dollar amount, and charitable remainder unitrusts (CRUTs), which pay a fixed percentage of the trust’s annually revalued assets.

This strategy is particularly relevant for professional athletes who receive a large signing bonus or endorsement payment and want to diversify a concentrated position while supporting causes they care about. Consult a qualified tax and legal professional before establishing any trust structure.

Strategy 6: Strategic Use of the Universal Charitable Deduction (If Extended)

During the OBBBA legislative process, there was significant discussion about a universal charitable deduction — an above-the-line deduction available to non-itemizers. While the final bill did not include a permanent universal deduction, some provisions allow limited above-the-line deductions for specific types of giving.

Monitor this space closely. Legislative proposals continue to circulate that could reinstate or expand the universal deduction. If enacted, this would be a game-changer for charitable giving tax planning because it would decouple charitable deductions from the itemization decision entirely.

In the meantime, the QCD strategy (for those 70½ and older) serves a similar function by providing tax benefits without itemizing.

Strategy 7: Integrating Charitable Giving Tax Planning With Your Estate Plan

Under OBBBA, the elevated estate tax exemption of approximately $14.2 million per individual ($28.4 million for married couples) means fewer estates face federal estate tax. However, this does not eliminate the role of charitable giving in estate planning.

Consider these integrated approaches:

• Charitable lead trusts (CLTs): Pay income to charity for a term, then pass remaining assets to heirs — potentially at a reduced gift or estate tax value.
• Naming charities as IRA beneficiaries: IRAs are subject to both income tax and estate tax. By designating a charity as the IRA beneficiary, you eliminate the income tax burden and remove the asset from your taxable estate.
• Private foundations: For families with giving goals exceeding $1 million, a private foundation provides control, legacy, and ongoing deductions — though with more restrictive AGI limits (30 percent for cash, 20 percent for appreciated assets).
• Life insurance strategies: Transfer ownership of a life insurance policy to a charity or charitable trust, potentially generating current deductions and a future charitable impact.

According to Kiplinger’s analysis of charitable deduction rules, coordinating lifetime giving with testamentary charitable transfers can significantly reduce the overall tax burden on a family’s wealth transfer plan.

How Martin County’s Unique Profile Shapes Charitable Giving Tax Planning

Florida’s No-Income-Tax Advantage for Charitable Donors

Living in Florida already provides a significant tax advantage: no state income tax. This means every dollar of federal charitable deduction directly reduces your effective tax rate without the complication of state-level deduction rules that residents of New York, California, or New Jersey must navigate.

However, the absence of state income tax also means you cannot “double dip” on charitable deductions at both levels. Your entire charitable giving tax planning strategy revolves around federal rules — making the strategies above even more important to execute precisely.

Martin County’s Philanthropic Landscape

Martin County has a vibrant nonprofit ecosystem. From the Community Foundation for Palm Beach and Martin Counties to local organizations supporting environmental conservation along the Indian River Lagoon, education, and healthcare, donors have no shortage of worthy causes.

Many of our clients support multiple organizations simultaneously. A DAF simplifies the administrative burden of managing gifts to five, ten, or even twenty different nonprofits while consolidating the tax benefit into a single contribution event.

Seasonal Residents and Charitable Giving Tax Planning Complexities

Stuart and the broader Treasure Coast attract seasonal residents who may maintain domicile in another state. If you split time between Florida and a state with income tax, your charitable giving tax planning must account for state residency rules, sourcing of income, and state-level charitable deduction limitations.

This is an area where working with a qualified financial advisor and CPA who understand multi-state residency is essential. To explore how our team approaches these complexities, you can schedule a discovery conversation at any time.

Common Mistakes in Charitable Giving Tax Planning (And How to Avoid Them)

Mistake 1: Giving Cash When Appreciated Assets Are Available

As illustrated in the comparison table above, donating appreciated securities is almost always more tax-efficient than giving cash. Yet many donors default to writing checks. Review your portfolio before making any significant gift.

Mistake 2: Forgetting to Document Contributions Properly

The IRS requires specific documentation for charitable deductions:

• Under $250: Bank record or written receipt from the charity.
• $250 or more: Written acknowledgment from the charity stating the amount and whether goods or services were provided in return.
• Over $500 in non-cash contributions: Form 8283 must be filed.
• Over $5,000 in non-cash contributions (excluding publicly traded securities): A qualified appraisal is required.

Failure to maintain proper records is one of the most common reasons charitable deductions are disallowed on audit.

Mistake 3: Ignoring the AGI Limitation

Charitable deductions are not unlimited. Exceeding the AGI thresholds means excess contributions must be carried forward up to five years. While carryforwards are not lost, they add complexity and can create planning challenges — especially if your income fluctuates year to year, as is common for business owners and professional athletes.

Mistake 4: Not Coordinating Charitable Giving With Other Tax Strategies

Charitable giving tax planning does not exist in a vacuum. It should be coordinated with:

• Roth conversions: A large Roth conversion increases your AGI, which could increase the value of charitable deductions in the same year.
• Capital gains harvesting: Timing the sale of appreciated assets alongside charitable contributions can optimize your overall tax position.
• Business income planning: S-corp distributions, partnership K-1 income, and other pass-through income affect AGI and deduction limits.

Building a Year-Round Charitable Giving Tax Planning Calendar

Effective charitable giving tax planning is not a December activity. Here is a quarterly framework:

Q1 (January–March): Review and Reset

• Evaluate prior year’s giving and tax impact.
• Confirm RMD amounts and QCD eligibility.
• Set annual giving budget and identify target charities.

Q2 (April–June): Tax Return Insights and Mid-Year Adjustments

• Review filed tax return for carryforward amounts.
• Identify highly appreciated assets for potential donation.
• Fund DAF if using a bunching strategy.

Q3 (July–September): Strategic Positioning

• Estimate year-end AGI and project itemized vs. standard deduction outcome.
• Evaluate CRT or CLT opportunities for large liquidity events.
• Coordinate with estate planning attorney on testamentary charitable provisions.

Q4 (October–December): Execute and Document

• Complete all planned contributions by December 31.
• Ensure all stock transfers settle before year-end (allow 5–7 business days).
• Collect and organize all acknowledgment letters and receipts.
• Process QCDs before the RMD deadline.

Frequently Asked Questions About Charitable Giving Tax Planning After OBBBA

Can I still deduct charitable contributions if I take the standard deduction in 2026?

Generally, no. Charitable contribution deductions require itemizing on Schedule A. However, if you are 70½ or older, a qualified charitable distribution (QCD) from your IRA provides a tax benefit without itemizing by excluding the amount from taxable income entirely. This is why bunching strategies and DAFs are so important for non-itemizers who want to give charitably.

How does OBBBA change the charitable deduction limits for 2026?

OBBBA largely preserves the existing AGI-based limits: 60 percent of AGI for cash contributions to public charities and 30 percent of AGI for appreciated property. These limits were established under the Tax Cuts and Jobs Act and continue under OBBBA’s extensions. Excess contributions can be carried forward for up to five years.

What is the best charitable giving tax planning strategy for professional athletes with variable income?

Athletes with fluctuating income benefit most from a combination of donor-advised funds and appreciated asset donations. In high-earning years, large contributions to a DAF maximize the deduction value. In lower-income years, grants from the DAF continue supporting charities without requiring additional contributions. Consult a qualified financial professional who understands the unique income patterns of professional athletes.

Are donations to my donor-advised fund deductible under current charitable giving tax planning rules?

Yes. Contributions to a DAF sponsored by a 501(c)(3) public charity are deductible in the year of the contribution, subject to standard AGI limits. Cash contributions are deductible up to 60 percent of AGI, and appreciated securities held over one year are deductible at fair market value up to 30 percent of AGI. The IRS treats DAF contributions the same as direct gifts to public charities for deduction purposes.

How do I choose between a charitable remainder trust and a donor-advised fund for charitable giving tax planning?

The choice depends on your goals. A DAF is simpler, less expensive, and ideal for donors who want flexibility and immediate deductions. A CRT is better suited for donors with large concentrated positions who want an income stream, capital gains deferral, and a partial charitable deduction. CRTs involve legal fees, annual administration, and irrevocable commitments, so they typically make sense for contributions of $500,000 or more. Your wealth management team can model both scenarios to determine which creates the greater after-tax benefit.

Taking Action: Your Charitable Giving Tax Planning Next Steps

The intersection of generosity and tax efficiency has never been more nuanced. With OBBBA extending the elevated standard deduction, maintaining AGI-based limits, and preserving QCD opportunities, charitable giving tax planning requires intentional strategy — not last-minute decisions.

Whether you are a retiree in Palm City looking to maximize QCDs, a business owner in Stuart exploring donor-advised funds, or a professional athlete structuring a multi-year giving plan, the strategies outlined above provide a roadmap. The key is coordination: aligning your charitable intent with your income, investments, estate plan, and tax situation.

In my experience working with clients across the Treasure Coast, the donors who achieve the greatest tax efficiency — and the greatest philanthropic impact — are those who plan proactively and review their charitable giving tax planning strategy at least annually.

📋 Ready to organize your charitable giving strategy? Take our 2-minute Financial Wellness Assessment to identify opportunities in your current plan and see where charitable giving fits into your overall financial picture.

💬 Want personalized guidance on your charitable giving tax planning? Ready for personalized guidance? Schedule a complimentary review with our team to discuss how these strategies apply to your specific situation.

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This content is for educational purposes only and does not constitute investment advice. Past performance is not indicative of future results. Advisory services offered through Davies Wealth Management, a Registered Investment Adviser. Please consult a qualified financial, tax, or legal professional regarding your specific situation.