Vanguard says writing a check isn't the best way to donate to charity — these 3 strategies can save you thousands in taxes

It used to be that as you got older, you were more likely to give to charity. But age has become "less predictive of charitable giving over time," according to Giving USA, which used data from TrueSense Marketing's DonorGraphics 2023 study. These days, household income is most predictive of charitable giving (2).

But whether you give regularly or want to make a one-time gift, "writing a check usually isn't the most tax‑efficient way to support a favorite charity," according to Vanguard (3) — especially if you are over 70½. Instead, you may want to consider other ways to reduce your tax burden — while still making a philanthropic difference.

Tax changes for 2026

The One Big Beautiful Bill Act has changed federal rules for charitable deductions in 2026 (4).

Single filers can now take a standard charitable deduction of up to $1,000, while married couples filing jointly can take one of up to $2,000.

If you itemize your deductions, in 2026, your qualified deductions must now exceed 0.5% of your adjusted gross income. "The change essentially raises the threshold for when charitable giving produces a tax benefit," according to Charity Watch (5).

The changes also affect high-income itemizers. If you're in the 37% federal income tax bracket, charitable deductions are now capped at 35%. So, under the new cap, if you donate $10,000, you get a tax break of only $3,500 instead of $3,700.

But there are alternatives to simply writing a check directly to a charity that may get you better benefits, along with the great feeling you get from donating to a worthy cause.

Benefit as you give

1. Qualified charitable distributions

For those 70½ and older, a qualified charitable distribution (QCD) allows you to make a donation directly to a qualified charity from an individual retirement account (IRA), up to a maximum of $111,000, instead of taking your required minimum distributions (6). The age at which you must take RMDs depends on your birth year. In 2026, RMD requirements will kick in if you are turning 73.

You can make a QCD through a traditional IRA, inherited IRA or inactive SEP-IRA / SIMPLE IRA. Technically, you could also do this through a Roth IRA, but you won't get any tax benefit — your Roth withdrawals are already tax-free (so long as they're for qualified withdrawals). Roth IRAs are also not subject to RMDs.

The amount you donate will count toward the IRA's RMDs, but it won't increase your taxable income.

Since you don't have to report that income, "QCDs can help reduce the taxation of Social Security benefits, limit exposure to income‑based Medicare surcharges and avoid other tax‑related costs," according to Vanguard (3).

You can't make a QCD through workplace retirement accounts such as a 401(k) or 304(b). But to get around this, you can roll over assets from a workplace account into an IRA.

Come tax time, QCDs "can be more effective than charitable deductions," points out Vanguard.

To check if the charity of your choice qualifies, you'll need to verify that it's a 501(c)(3) organization. You can do this via the IRS Tax Exempt Organization Search Tool (7).

2. Donor-advised funds

If you're planning to donate a large amount to charity or to multiple charities, you might want to consider a donor-advised fund (DAF), which is an account dedicated specifically to charitable giving. You can contribute cash or assets, and you get an immediate deduction.