What You Need to Know as 2026 Dawns

We are honored to kick off another year working with so many attorneys, financial advisors, and CPAs to help you serve your philanthropic clients.

Here’s what’s happening as the new year dawns:

• 2026 tax adjustments—including Social Security COLA increases, higher standard deductions, updated tax brackets, QCD limits, and new non-itemizer charitable deductions. Each of these changes can impact which charitable strategies you recommend to your clients. We are here to help translate technical tax changes into meaningful charitable outcomes for your clients.
• Donor Advised Funds remain a powerful planning tool despite the new charitable deduction floor and cap that took effect in 2026. Donor Advised Funds at Gulf Coast are especially valuable to your clients thanks to our team’s local expertise, the administrative simplicity we offer, and our ability to support a client’s evolving legacy and estate planning goals.
• Qualified Charitable Distributions will be even more advantageous with the new OBBBA taking effect in 2026. They can reduce a client’s taxable income while supporting meaningful philanthropy in retirement. Notably, our team is happy to provide examples of language you can use to explain to a client why QCDs cannot flow into Donor Advised Funds and how alternative Gulf Coast fund options can still meet the client's goals. Work with our team to turn complex tax rules into compliant, values-driven charitable strategies.  

In addition, endowing a QCD can help your client build a charitable legacy, providing ongoing support to the charities they care about for generations. For financial advisors managing clients’ charitable funds at Gulf Coast, this offers a unique opportunity: unlike most QCDs, which leave your book of business, this strategy allows you to continue managing these funds for the long term.

As always, the Gulf Coast team is here for you! We are honored to partner with you to support your clients’ efforts to achieve meaningful, well-informed, and enduring impact—separate and distinct from purely tax-driven outcomes.

WHAT’S NEW IN THE NUMBERS: Tax Rules in 2026

Well before 2025 made way for 2026, you were no doubt already tracking the various IRS thresholds that are subject to adjustment, as well as the new tax laws’ impact on planning techniques. But have you thought about how each of these thresholds might relate to your clients’ charitable giving? Here are pointers to keep handy as you inform your clients about changes in 2026 and help them tee up their charitable giving plans for the coming year.

Social Security COLA Increases 

The Social Security Administration announced a cost-of-living adjustment (COLA) increase effective January 1, 2026. This increase reflects inflation’s trajectory and affects many retirees who also engage in philanthropy.

Standard Deduction Increases

For tax year 2026, the standard deduction increased to $16,100 for single taxpayers, $24,150 for heads of households, and $32,200 for married couples filing jointly.

Tax Brackets

Though the tax rates remain at a range from 10% to 37%, the income levels that define each bracket for 2026 have shifted.

Qualified Charitable Distributions (QCDs)

For tax year 2026, the per-taxpayer limit for Qualified Charitable Distributions (QCDs) has been increased for inflation to $111,000, up from $108,000 in 2025. And, the limit for a one-time QCD from an IRA to a split-interest vehicle, like a Charitable Gift Annuity, has been adjusted for inflation to $55,000, up from $54,000.

Non-Itemizer Charitable Deductions

Beginning with tax year 2026, a single-filer taxpayer who does not itemize deductions will be allowed to deduct up to $1,000 in cash donations to qualified charities (excluding Donor Advised Funds and private foundations). Non-itemizing joint filers may deduct up to $2,000.

As 2026 gets into full swing, please reach out to the Gulf Coast team! We are honored to be your first call on all matters related to charitable giving. Thank you for the opportunity to help you serve your clients!

Why Donor Advised Funds are Still Essential

For many CPAs, estate planning attorneys, and financial advisors, the end of 2025 brought a whirlwind of charitable planning activity among high-earner clients. That’s because many taxpayers wanted to maximize the tax benefits of their charitable donations before the 0.5% “floor” and 35% “cap” on charitable deductions kicked in on January 1, 2026 under new tax laws. Donor Advised Funds (DAF) in particular played a big role in many late-2025 planning strategies because affected taxpayers could transfer assets to a DAF in 2025, achieve optimal tax results, and then thoughtfully recommend grants to favorite charities from the fund in 2026 and beyond.

Should you still recommend that your clients establish and use Donor Advised Funds at Gulf Coast to organize their charitable giving?

Absolutely yes! DAFs remain a highly relevant and strategic tool for your clients. The IRS’s new deductibility limits may reduce the marginal tax benefit of giving for some of your clients, but nothing has changed about the DAF’s broader planning advantages for all of your charitable clients. Here’s why:

• Fundamentally, regardless of tax benefits, your clients’ charitable intent is driven by values, legacy, and a desire for community impact. (No one gives away a dollar to save 35 cents!) That’s why you want to offer your clients the most effective charitable planning vehicles available to achieve charitable goals. A DAF at Gulf Coast often plays a crucial role in a client’s overall philanthropy structure. Here’s how:
  • A DAF still allows clients to separate the timing of their charitable deduction from the timing of their actual grants to favorite charities, thereby preserving flexibility in years when income is unusually high or coming in handy when planning around liquidity events, even if the deduction is partially constrained under new laws. This also allows clients to be more strategic with their giving. Giving them the benefit of adjusting their giving as their interests and goals evolve.
  • Gulf Coast DAFs, in particular, provide benefits that extend well beyond the tax code. That’s because of our team’s local expertise, deep knowledge of regional nonprofits, and ability to help your clients align their giving with real community needs.
  • When you work with Gulf Coast, you can confidently recommend a DAF because you know the client will receive administrative simplicity, top-notch service, and plenty of opportunities for deep community connections and multigenerational philanthropy.

In short, DAFs at Gulf Coast support your clients’ holistic wealth and legacy planning goals. We make it easy for you, as the advisor, to integrate a DAF into a client’s estate plan, use a the fund to smooth charitable giving over time as a client’s income ebbs and flows, and lean on the fund as a platform for strategic philanthropy that can evolve alongside a client’s unique life and financial circumstances.

CASE STUDY: A QCD Conversion in Action

If you know the basics of Qualified Charitable Distributions (QCDs) but have a hard time envisioning exactly what to say and do when they come up in a client conversation, you are not alone! Whether you are an attorney, CPA, or financial advisor, at some point you will find yourself in the middle of a QCD conversation. Here’s a case study to help you be prepared.

MEET MARGARET: Margaret, a 74-year-old widow and longtime client of your practice, scheduled a meeting early in the year to discuss her charitable giving plans. In the email Margaret sent to set up the meeting, she mentioned that she was now taking required minimum distributions from her IRA and her taxable income was higher than she expected or needed.

As you reviewed Margaret’s file prior to the meeting, you were reminded that Margaret had established a Donor Advised Fund (DAF) at Gulf Coast several years ago. You recall from prior conversations that Margaret not only has enjoyed using the DAF to organize her charitable giving to dozens of favorite charities, but she’s also appreciated the many opportunities to tap into the foundation’s events and educational opportunities.

THE MEETING: Margaret arrived at your office, and after catching up on each other’s lives lately, Margaret said, “I’ve read about this thing called a Qualified Charitable Distribution. If I’m going to give to charity anyway, I want to understand whether doing a QCD in 2026 makes sense, especially if I want the gift to go through Gulf Coast where I already do all of my giving.”

You nod and explain that a QCD does indeed allow individuals like her who are age 70 ½ or older to transfer funds directly from an IRA to a qualified charity without including that amount in taxable income. You mention that this can be especially powerful after age 73, when required minimum distributions begin, because the QCD can satisfy all or part of the RMD while keeping adjusted gross income lower. “This can help address Medicare premiums, taxation of Social Security, and overall tax efficiency,” you continue. “With the annual QCD limit increasing through inflation adjustments to $111,000 in 2026, it’s a timely strategy to consider.”

Margaret was glad to hear all of this. Then she asked, “I already have a DAF, so can I simply direct my QCD straight into that fund?” You are prepared for this question! It is a common point of confusion. “That’s a great question, and you’re not alone in asking it,” you reply. “Under current IRS rules, unfortunately, QCDs can’t be made to DAFs, even if they’re housed at a community foundation.”

THE ISSUE: Seeing her puzzled expression, you continue with a broader explanation. “QCDs are limited to certain types of charitable recipients,” you say. “They can go directly to public charities that are ‘operating’ nonprofits, and in limited cases to certain split-interest arrangements like a charitable gift annuity or a charitable remainder trust, subject to specific rules. DAFs are excluded, evidently because the IRS does not want the money to flow into account where the taxpayer retains advisory privileges. DAFs are of course entirely dedicated to charity, so the rule does not make a lot of sense. Yet here we are.”

Margaret frowned slightly. “That feels frustrating,” she said. “I love the DAF because it gives me flexibility and lets me support multiple causes over time.” You acknowledged her concern. “I understand. The good news, though,” you say, “is that Gulf Coast offers other types of funds that do qualify for QCDs and can still accomplish many of the same goals.”

THE SOLUTION: You go on to explain that instead of directing the QCD to her DAF, Margaret could direct the QCD to a designated fund that supports specific charities she already knows she wants to help, or to a Field of Interest Fund focused on causes she cares about deeply, such as education or the arts, or to an unrestricted fund to support the community as a whole. “Those types of funds are fully managed by Gulf Coast, without your advisory role after setup,” you say, “which makes them eligible recipients of a QCD while still aligning with your charitable intentions.”

Margaret paused, considering the options. “I don’t want to make the wrong choice,” she said. “I also want to be sure the fund is set up properly and really reflects what I care about.” You agree that is exactly the point where collaboration matters most. “This is where I’d recommend looping in Gulf Coast,” you say. “They can help us think through which type of fund fits best, provide a fund agreement document, and enable me to fulfill my professional duty to ensure that the structure complies with QCD rules.”

THE CONCLUSION: By the end of the meeting, you and Margaret have agreed on next steps: you said you would review Margaret’s IRA custodian requirements for executing a QCD, and Gulf Coast will set up a fund to receive the distribution. The plan will allow Margaret to use her required minimum distribution to support the community she loves, reduce her taxable income, and create a charitable structure she feels confident about.

If Margaret’s situation sounds familiar, or if you anticipate any type of charitable giving conversation with a client, Gulf Coast is here for you! We are always happy to collaborate as you explore solutions to achieve your clients’ charitable goals. In nearly every situation, we can help. At the very least, we will point you in the right direction.