As the days grow shorter and the year begins to wind down, fall offers a natural pause. It’s a chance to reflect on what matters to you most, and to think about the difference you want to make through your philanthropy before year-end and beyond.
Review Your Plans and Take Note of New Tax Changes
Before the holidays arrive in earnest, take a moment to review your financial picture with your adviser. Several tax updates took effect for the 2026 tax year, and a few of them may shape how and when you choose to give.
2026 Standard Deduction and Additional Deductions for Ages 65 and Older
For 2026, the standard deduction is $16,100 for single filers and $32,200 for married couples filing jointly. If you are 65 or older, you may claim an additional standard deduction of $2,050 for single or head-of-household filers, or $1,650 per eligible spouse for those married filing jointly.
In addition, through 2028, taxpayers 65 and older may qualify for a “bonus” deduction of $6,000 per individual ($12,000 for a married couple when both spouses qualify). This “bonus” phases out at higher income levels, so your tax adviser is the best person to confirm what applies to you.
Planning tip: If you take the standard deduction, a new universal charitable deduction beginning in the 2026 tax year lets you support the Lucile Packard Foundation for Children’s Health and still see a tax benefit. Non-itemizers may deduct up to $1,000 in cash donations to qualifying charities, or up to $2,000 on a joint return.
New Adjusted Gross Income Rules for Charitable Deductions
If you itemize your deductions, ask your adviser whether the new adjusted gross income (AGI) rules apply to you. Beginning with the 2026 tax year, only the portion of your charitable contributions that exceeds 0.5% of your AGI is deductible.
Planning tip: To clear the 0.5% AGI minimum, some donors are “bunching” their gifts: concentrating several years of planned giving into a single year rather than spreading smaller amounts across time. For example, a donor who intended to give $2,500 a year for four years might instead make one $10,000 gift this year.
There is a new upper limit to the deductibility of gifts as well. Beginning in 2026, taxpayers in the highest 37% tax bracket will see the value of their itemized deductions capped at 35%, meaning a charitable contribution saves $0.35 per dollar deducted rather than $0.37.
Planning tip: Ask your adviser whether this affects you. Donating appreciated assets such as securities may allow you to avoid capital gains tax while still claiming an income tax charitable deduction.
Make a Gift From Your IRA
If you are 70½ or older, you may give up to $111,000 this year directly from your individual retirement account (IRA) to a qualified charity such as the Lucile Packard Foundation for Children’s Health without paying income tax on the distribution. This is known as a qualified charitable distribution, or QCD. If you are required to take a minimum distribution (RMD) from your IRA, a QCD can count toward satisfying it. Read how one donor used her QCD gifts in a “win-win” way to make an impact without adding to her tax bill.
Planning tip: To learn more about giving from your IRA, review and share this resource page with your adviser. It is never too early to plan! Even if you are not yet taking RMDs, starting the conversation now means you will be ready when the time comes.
Review Your DAF Balance and Recommend a Grant
If you have a donor-advised fund (DAF), year-end is a good time to review your balance. Recommending a grant before December 31 helps ensure that children and expectant mothers in need have the care they deserve, right when they need it most. Our DAF resource page can help.
Planning tip: You can also leave your DAF balance to the charity of your choosing by updating the beneficiary designation on your DAF. Directing any funds that remain at the end of your life go to the Lucile Packard Foundation for Children’s Health will ensure that they are used exactly as you intended.
Already Included Packard Children’s in Your Estate Plans?
A bequest is one of the simplest and most popular ways to include philanthropy in your estate plan, and it provides enduring support for the families we will serve for years to come. Read about one donor who has done just that.
If you have already named Packard Children’s in your plans, please let us know! We would love to properly thank you and make sure we know exactly how you’d like us to use your gift! We also invite you to explore this unique opportunity to make an impact with your bequest gift now.
An Important Note on Gift Dates
Different gift types follow different timing rules, so a little planning goes a long way:
● Checks: Be sure to mail and postmark your check well before December 31.
● Securities: The gift date for donated securities is generally the date the securities arrive in the charity’s account, not when you initiate the transfer. Remember to start the process early with your broker.
● QCD transfers: Whether your distribution satisfies your required minimum distribution depends on who mails the check: your IRA custodian or you. Please give us a call and we will walk you through the details.
Questions?
To learn more about tax-smart giving strategies that make the most of your financial resources and support children and families at Lucile Packard Children’s Hospital Stanford, you can watch our recorded webinar, Charitable Giving 101: Exploring Tax-Smart Ways to Make Your Impact, from the comfort of home.
And for guidance on the best ways to leave a legacy at Lucile Packard Children’s Hospital Stanford, please reach out to the Gift Planning team at GiftPlanning@LPFCH.org. We would be honored to be part of your plans.
The Lucile Packard Foundation for Children’s Health is a tax-exempt organization and does not provide tax, legal, or financial advice. Any document or information provided to you by our staff is intended to be educational and informational. The Lucile Packard Foundation for Children’s Health strongly encourages all of our donors to seek counsel from their own legal and financial advisers.