Shortly following the ratification of the United States Constitution and the establishment of a new government, Benjamin Franklin was credited with coining the phrase “nothing is certain except death and taxes.”While that April 15 tax deadline looms over many each year, for others, tax season may bring the unexpected gift of a refund. If you are one of those lucky recipients, that refund represents a meaningful opportunity to make an impact. While the personal rewards of investing in your community may be felt rather than seen – in terms of a tug at your heartstrings or a rising sense of pride, there are some more tangible ways to reap the benefits of this year’s donations on next year’s taxes.
Giving to Charity is Wonderful, but Giving to a Qualified 501(c)(3) Nonprofit Organization is Wise…
You can visit IRS.gov and check its database to verify whether a charity is eligible to receive tax-deductible donations. Rainbow Village is proud of our 501(c)(3) status, so every donation you make to our organization is tax-deductible.
Stay Up to Date on Contribution Limits
Tax laws are constantly changing, so it’s important to check the standard deduction each year to learn whether or not you can comfortably rise above that level. If so, be sure to itemize any monetary contributions you make. For 2026, itemized deductions will only apply if they exceed 0.5% of your Annual Gross Income (AGI).
Keep Record of Your Contributions and the Organizations You Aid
Be sure to document the organizations you donate to, along with the date, amount, and address, to substantiate future deductions.
You Can STILL Deduct Charitable Contributions Even if You Don’t Itemize
According to new tax guidelines for 2026, non-itemizers can deduct up to $1,000 or $2,000 for married filing jointly in charitable contributions, even if they take the standard deduction.
Consider “Bunching” Your Contributions
If you give to charity regularly but aren’t hitting the threshold for itemizing taxes due to a higher standard deduction, you’re not alone. A tax strategy called ‘bunching’ involves grouping multiple years of charitable donations into one year and taking the standard deduction in the other years.
Don’t Forget About Qualified Charitable Distributions if You’re 70 ½ or Older
A required minimum distribution (RMD) is the minimum amount you must withdraw from your retirement accounts each year, such as traditional IRAs and 401(k) plans, traditionally beginning at age 73. Those withdrawals represent taxable income. To offset those taxes, you can make a qualified charitable distribution (QCD), which is a direct transfer of funds from your IRA to a qualifying charity that can be counted toward satisfying your required minimum distributions. You must be at least 70½ to make this type of distribution. For 2026, the annual limit is $111,000 per individual. A married couple filing jointly can transfer $111,000 from each of their IRAs in the same year.
We applaud you for donating to any charity. By choosing to give a portion of your return to Rainbow Village, you are investing in families working toward stability, independence, and long-term success. Your support does more than meet immediate needs. It strengthens our community by empowering families with the tools, resources, and support systems they need to thrive. Ready to donate a portion of your tax return to Rainbow Village online? Visit https://rainbowvillage.org/get-involved/donate/. Thank you for your support!
Source: https://www.irs.gov/charities-non-profits/charitable-contributions