Charitable giving is becoming a more important part of financial planning for RIAs in 2026. Changes to tax rules, a higher standard deduction, and a new 0.5% AGI floor can affect how much clients actually benefit from their donations.

For some households, making the same charitable gift every year may no longer provide much of a tax benefit. Others may be able to get more from their giving by donating appreciated stock, using a donor-advised fund, or combining several years of donations into one tax year. The right approach depends on the client’s income, investments, tax situation, and estate plans.

Why Are Donor-Advised Funds Useful for RIAs and Their Clients?

A donor-advised fund, or DAF, lets a client contribute cash or investments, receive a charitable deduction in the year of the contribution, and recommend grants to charities later.

DAF assets reached about $328 billion in fiscal 2024. Contributions totaled $90.6 billion, while grants reached $64.6 billion. The gap between when a client makes a contribution and when the money is given to a charity is one of the main reasons DAFs can be useful for tax planning.

For example, a client who normally gives $15,000 a year could contribute several years of planned donations to a DAF during a high-income year. They can then continue supporting their preferred charities from the fund over time.

For contributions to a public-charity sponsor, the general deduction limits are 60% of AGI for cash and 30% for long-term appreciated property. Unused deductions can generally be carried forward for five years.

When Should Clients Donate Appreciated Securities?

For clients who hold stocks that have gained significantly in value, donating shares can be more tax-efficient than selling them first and donating the cash.

A qualifying gift of long-term appreciated securities can generally be deducted at fair market value, subject to the applicable AGI limits. The donor also generally avoids recognizing the capital gain on the donated shares.

By comparison, selling the stock first can result in federal long-term capital gains tax of up to 20%, plus the 3.8% net investment income tax and potentially state tax.

This can be especially useful when the client also has a concentrated stock position. Donating some of the appreciated shares can reduce the position while supporting a charity and potentially avoiding tax on the gain.

Clients should also start the transfer early. Stock donations can take time to process, especially near the end of the year.

Can Bunching Help Clients Get More From Charitable Giving?

Bunching means putting several years of planned charitable gifts into one tax year instead of making smaller donations every year.

For 2026, the standard deduction is $16,100 for single filers and $32,200 for married couples filing jointly. A household giving $15,000 a year may not have enough deductions to make itemizing worthwhile. Contributing $60,000 to a DAF in one year could change that calculation.

The new 0.5% AGI floor also needs to be included when estimating the tax benefit.

Bunching can be worth considering when a client is close to the standard-deduction threshold or expects a much higher income in a particular year, such as after selling a business or receiving a large bonus.

What Other Areas Can Help RIAs Deliver More Client Value?

Charitable planning is one way RIAs can help clients get more from their wealth beyond investment returns.

Securities class action recovery is another area that can be missed. Securities class action settlements totaled approximately $8 billion in 2025. Platforms such as 11th.com automate settlement monitoring, holdings matching, claim filing, and payout delivery. It is another part of the client relationship that can be included alongside tax and investment planning.

What Will Charitable Planning Look Like in 2026 and Beyond?

There is no single charitable strategy that works for every household. Some clients may benefit from bunching donations into a high-income year. Others may get more value from donating appreciated stock, using a DAF, making QCDs, or including charity in their estate plan. For RIAs, the goal is to make charitable giving part of the financial plan rather than something discussed only at the end of the year.

FAQ

Why are donor-advised funds useful in 2026?

They let clients take a deduction when they fund the DAF and recommend grants later.

Why donate appreciated stock instead of cash?

It can reduce a concentrated position while potentially avoiding capital gains tax on the donated shares.

What is deduction bunching?

It means combining several years of charitable gifts into one tax year to make itemizing more beneficial.

Can DAF contributions qualify for the non-itemizer deduction?

No. The limited deduction for certain standard-deduction filers does not apply to DAF contributions.

How does charitable giving fit into estate planning?

DAFs, charitable trusts, bequests, beneficiary designations, and QCDs can all be used depending on the client’s goals.