Recent changes to tax laws may affect your support for the LA Regional Food Bank and other nonprofits. Understanding these updates can help you maximize your charitable giving.
Every donation to the Los Angeles Regional Food Bank supports over a million neighbors each month. While generosity is key, many donors wonder about the tax benefits of their contributions, especially if they take the standard deduction instead of itemizing their deductions.
Here are some important changes to keep in mind as you plan your donations this year.
A New Deduction For More Donors
You can now deduct cash donations even if you don’t itemize. Here’s how it works:
- Up to $1,000 for single filers.
- Up to $2,000 for married couples filing jointly.
This deduction adds to the standard deduction, which is $16,100 for singles and $32,200 for married couples in 2026. Note that gifts to donor-advised funds don’t qualify.
Benefits For Donors 65+
If you’re 65 or older, you could get a higher standard deduction along with an extra deduction. This can be up to $6,000 for individuals or $12,000 for married couples if both qualify. Keep in mind that income limits apply.
Smart Giving Options
- Donating appreciated stock or real estate can help you avoid capital gains tax.
- If you’re 70½ or older, you can transfer up to $111,000 from your IRA directly to the Food Bank in 2026 without tax penalties. This can help satisfy your required minimum distribution (RMD).
For Those Who Itemize
- Cash donations may be deducted up to 60% of your adjusted gross income (AGI).
- You need to give at least 0.5% of your AGI to claim this deduction.
- Top earners see a reduced tax benefit for each dollar deducted.
Understanding these tax changes is crucial for strategic giving. A recent survey indicates that 45% of donors are unaware of these new deductions, which suggests many are missing out on potential benefits.
For specific questions about gift options, you can reach out to Roger Castle, Chief Development Officer, at rcastle@lafoodbank.org or call 323-234-3030 x147.
Staying informed about tax laws can help you give more effectively while navigating your financial landscape. For more insights on recent tax changes, click here.
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