New rules for the 2026 tax year may reduce the tax savings from charitable giving for high net worth clients. Clients who itemize can deduct only the portion of their charitable gifts above 0.5% of adjusted gross income (AGI). Those in the highest tax bracket also face a new limit on the tax savings from their deductions.
To examine how advisors can help clients adjust their charitable giving strategies, Wealth Solutions Report spoke with James Kaufman, Managing Partner and Senior Wealth Management Advisor at OpenArc Corporate Advisory; Haley Schaffer, Founder and Managing Partner at Waypoint West; and Kristin Larson, Founder and Wealth Advisor at NewSpring Wealth Partners.
We asked each of them: With the new charitable deduction rules taking effect in 2026, how should advisors help high net worth clients adjust their year-end charitable giving strategies to maximize tax benefits?
Their responses follow.
James Kaufman, Managing Partner And Senior Wealth Management Advisor, OpenArc Corporate Advisory
For high net worth clients, charitable giving should be part of the year-end tax and investment conversation, not an afterthought. The new rules make the timing and structure of those gifts more important, so advisors should look at the client’s full financial picture and consider how different strategies might work together.
That could mean bunching several years of contributions into a single year, funding a donor-advised fund or donating highly appreciated securities rather than cash. For someone with a concentrated stock position, for example, donating shares directly to charity may help support the causes they care about while also addressing broader portfolio and tax-planning considerations. The important thing is to start the conversation early enough to look at income, investment gains, charitable goals and other year-end planning decisions together.
But don’t let the tax tail wag the philanthropic dog. The charitable goal should still come first. From there, advisors can work with the client’s tax and legal professionals to determine the assets, timing and giving strategies that may help them accomplish that goal in a tax-efficient way.
Haley Schaffer, Founder And Managing Partner, Waypoint West
Most of our clients will barely feel the new floor. Losing the first 0.5% of AGI in deductions is an annoyance, but at $1 million of income it’s a few thousand dollars of tax. The cap is similar. Income in the top bracket now gets 35 cents back per deducted dollar instead of 37. So I’m not telling clients to panic — I’m telling them to be more deliberate.
The biggest lever is still giving appreciated stock instead of cash. If you’ve held shares for over a year, you skip the capital gains on what you give away, and the new law didn’t change that. Just know stock gifts are capped at 30% of AGI, and private company shares need an appraisal.
If you give every year, think about putting a few years into a donor-advised fund at once. You clear the floor one time, and your charities still hear from you every year. Start now. Stock transfers take longer than people expect in December.
Expecting a big liquidity year? Plan the gift alongside the sale. A charitable remainder trust has to be in place before a deal is final.
Clients over 70½ can give straight from their IRA and avoid both rules entirely.
Kristin Larson, Founder And Wealth Advisor, NewSpring Wealth Partners
One of the biggest missed opportunities I see is treating charitable giving as a one-year tax decision. Viewing charitable planning over multiple years can create meaningful financial benefits, particularly under the new 2026 rules.
The new 0.5% AGI floor for itemized charitable deductions and reduced tax benefits for taxpayers in the highest bracket make timing and gift selection especially important. Advisors should help high net worth clients coordinate charitable goals with anticipated income, retirement transitions, business sales, Roth conversions and other significant financial events.
For example, concentrating several years of contributions into the most advantageous tax year may offer benefits. Donor-advised funds can help families take a deduction when they contribute while recommending grants to their preferred charities in subsequent years.
Advisors should also consider which assets clients contribute. Donating appreciated securities held for more than a year, rather than cash, may help avoid capital gains taxes while providing a charitable deduction, subject to applicable limits.
By looking beyond year-end decisions and considering when to give, which assets to contribute and how those choices fit into longer-term financial plans, advisors can help families make the most of available tax benefits while continuing to support the causes that matter to them.
Jeff Berman, Contributing Editor and Reporter at Wealth Solutions Report, can be reached at jeff.berman@wealthsolutionsreport.com.
