Tax planning tips from the Carbon County Community Foundation
New federal tax rules taking effect in 2026 mean that making a charitable gift could be more beneficial than ever, even if you’ve never thought of yourself as someone who itemizes deductions or gives strategically.
The One Big Beautiful Bill Act, signed into law in 2025, is the legislation behind these changes.
Here’s what changed, and how the Carbon County Community Foundation can help you make the most of it.
What’s New for 2026?
The One Big Beautiful Bill Act affects nearly every type of charitable donor:
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- Non-itemizers can now claim a charitable deduction of up to $1,000 (single) or $2,000 (married filing jointly), even if you take the standard deduction
- Itemizers face a new rule: only donations exceeding 0.5% of your adjusted gross income are deductible
- High earners in the 37% tax bracket have a new cap limiting the benefit of charitable deductions
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How the Carbon County Community Foundation Can Help:
If you take the standard deduction, donate to an existing fund at the Community Foundation
The new above-the-line deduction is a win for most taxpayers. A cash gift to any of our 60+ funds qualifies for the deduction, up to $1,000 for single filers or $2,000 for married couples filing jointly.
Not sure where to give? Our 20/20 Circle is an easy starting point: membership is a one-time $1,000 contribution, which lines up perfectly with the new deduction limit for single filers. And since membership is for life, you’ll still be part of the 20/20 Circle even if tax laws change down the road.
If you itemize, consider a Donor Advised Fund
A Donor Advised Fund (DAF) lets you “bunch” several years of donations into one year to maximize your itemized deduction. The best part: you don’t have to give it all away at once. You can recommend grants from your donor-advised fund at the Community Foundation to your favorite charities on your own schedule, whether that’s monthly, annually, or whenever feels right. One smart tax move, with all the flexibility you want.
If you’re 70½ or older, ask about Qualified Charitable Distributions
A Qualified Charitable Distribution (QCD) lets you transfer funds directly from your traditional IRA to a fund at the Carbon County Community Foundation, counting toward your Required Minimum Distribution (RMD) and excluded from your taxable income entirely. This can be a smart option even if you’re still working but want to avoid taking IRA income you don’t need yet. Each person can contribute up to $111,000 per year, so a married couple could direct up to $222,000.
You can give to an existing fund or establish your own, such as a named scholarship fund. This is a great option if your RMD is a larger amount and you want your gift to have a lasting, personal legacy.
Note that donor-advised funds do not qualify for QCDs, but most other fund types do.
Let’s Talk!
Not sure which approach is right for you? We’re happy to help you find a giving strategy that fits your financial picture. Reach out to us at director@cccfoundpa.org or 610-730-2526 or schedule an appointment online to discuss your options.
The Carbon County Community Foundation is not a tax or legal advisor. The information in this post is for general informational purposes only. Tax laws are complex and your situation is unique. Please consult a qualified tax professional, financial advisor, or attorney before making charitable giving decisions based on the new rules.