Why 2026 Is Different: A Few Tax-Time Reminders

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As we move through tax season here on the Outer Banks, it’s a good time to take a fresh look at your charitable giving plans. With new tax rules taking effect in 2026, a quick conversation with your CPA—and with us—can help make sure your generosity is working as hard as it can for both you and our community.

Here are a few key updates to keep in mind:

1. Itemizing matters more—and works a little differently
Charitable deductions still require itemizing, but starting in 2026, only contributions above 0.5% of your adjusted gross income are deductible. For some donors, this makes it more effective to “bundle” gifts into a single year—often using a donor-advised fund—to maximize tax benefits.

2. A new option for non-itemizers
Even if you don’t itemize, you may now deduct up to $1,000 (or $2,000 for couples) in cash gifts to qualifying charities. This opens the door for more households—including younger donors—to see a tax benefit from giving.

3. Keep good records
Documentation rules remain the same: gifts over $250 need written acknowledgment, and larger non-cash gifts may require additional forms or appraisals. Many donors find it helpful to simplify this by making one annual contribution to a fund at the Community Foundation and receiving a single receipt.

4. IRA giving remains a powerful tool
If you’re age 70½ or older, Qualified Charitable Distributions (QCDs) are still one of the most tax-efficient ways to give. They can count toward required minimum distributions and are not impacted by the new deduction limits.

Tax rules may change, but the spirit of giving on the Outer Banks does not. Thoughtful planning simply helps ensure your generosity goes further—supporting the people and places that make this community so special.

As always, the Outer Banks Community Foundation is here to help. We’re glad to work alongside you and your advisors to make your giving as meaningful and effective as possible.

For more information about the Community Foundation, visit OBCF.org or call 252-423-3003. 

About the Outer Banks Community Foundation: The Outer Banks Community Foundation is a 501(c)3 nonprofit organization committed to fostering philanthropy and supporting local causes. Through its charitable funds and grant programs, the Foundation strives to enrich the quality of life for residents of the Outer Banks.