Tax Benefits of GIVING

Every dollar you give to Easterseals Wisconsin makes an impact, offering support to children and adults with disabilities and their families. While your gift most definitely changes lives, it also brings you joy knowing you’ve made a real difference, right here in Wisconsin! The following information is provided to help you navigate the best way to maximize your donation and benefit from tax deductions.

Strategies for Charitable Contributions

With recent tax law changes, some people may no longer benefit from itemizing deductions due to state and local tax deduction limits ($15,750 for single filers and $31,500 for married filing jointly).

Below are several tax-efficient ways to continue supporting nonprofits:

1. Donate Directly From Your Retirement Account:
If you are 70.5 or older, you can make a Qualified Charitable Distribution (QCD) from your IRA directly to a charity.

QCDs count toward your Required Minimum Distribution (RMD).
They do not count as taxable income.
The distribution must go directly from the IRA to the charity — it cannot pass through you first.

2. Bunching Donations

If your itemized deductions are close to the standard deduction, bunching may help.

This means making larger charitable gifts in one year and smaller or no gifts the next year, while still giving the same total amount overall.

This can increase your tax deductions over a two-year period.

3. Donor-Advised Funds (DAFs)

A donor-advised fund works like a simplified, lower-cost version of a private foundation.

You receive an immediate tax deduction when you contribute cash or investments.
The funds can grow tax-free.
You choose when and how much to distribute to IRS-qualified charities in future years.

4. Above-the-Line Deduction (Starting in 2026)

Beginning with the 2026 tax year, taxpayers who take the standard deduction can also deduct:

Up to $1,000 in charitable gifts (single filers)
Up to $2,000 (married filing jointly)

5. Donating Appreciated Securities

Gifts of long-term appreciated stocks or mutual funds allow you to:

Give the full market value to a charity
Avoid capital gains tax on the appreciation (if held for at least one year)