Aligning Generosity with Strategic Financial Stewardship
Philanthropy is more than a charitable act; it’s a lasting reflection of your family’s values and legacy. In today’s evolving tax and regulatory environment, impactful giving demands more than generosity alone. It calls for a thoughtful strategy to amplify your contribution’s reach while optimizing tax outcomes.
At Armbruster Capital Management, we guide high-net-worth individuals and families through many aspects of philanthropy, helping ensure your generosity is both meaningful and efficient.
Navigating the 2026 Charitable Landscape
The One Big Beautiful Bill Act (OBBBA) introduces several new rules to charitable giving that require proactive management. Our team of CPAs and CFAs is committed to helping you adapt and preserve the effectiveness of your strategy.
Managing the 0.5% AGI Floor
Starting in 2026, itemized charitable deductions must exceed 0.5% of your Adjusted Gross Income (AGI). We help you strategically model and time your gifts to surpass this threshold and capture optimal tax benefits.
The 35% Deduction Cap
For those in top tax brackets, the federal benefit for charitable giving is now limited to 35 cents per dollar contributed. We help you identify the most efficient giving vehicles under this new ceiling by analyzing your complete tax picture.
Strategic "Bunching" Techniques
To counteract the new deduction floor, we implement “bunching” strategies — grouping several years’ gifts into one tax year—to maximize deductions and overcome standard deduction limits.
Sophisticated Giving Vehicles
We go beyond simple cash gifts, helping you determine the most effective charitable vehicles to match your goals:
Donor-Advised Funds (DAFs)
DAFs provide immediate tax deductions and enable long-term, tax-free charitable growth. We leverage this tool for strategic, flexible grantmaking that may increase your gift’s impact over time.
Qualified Charitable Distributions (QCDs)
For clients over 70½, we facilitate direct IRA transfers to qualified charities—an efficient way to satisfy required minimum distributions (RMDs) without increasing taxable income.
Private Foundations vs. Public Charities
We help you evaluate whether the control and legacy of a private foundation outweigh the simplicity and higher deduction limits of a DAF.
Gifting Appreciated Securities
We facilitate direct transfers of appreciated assets to charities, allowing you to deduct their full market value and avoid capital gains taxes.
Multi-Generational Impact
Philanthropy is often a family tradition. We help families define a charitable mission and foster thoughtful conversations across generations about wealth and stewardship. By integrating your giving with estate and trust planning, we help you preserve your philanthropic legacy for generations to come.
Frequently Asked Questions
How does the new 0.5% AGI floor affect my giving?
Starting in 2026, your itemized charitable deductions must exceed 0.5% of your adjusted gross income (AGI) before they count. We help model and time your gifts to help you get the tax benefit.
What is "bunching" charitable gifts?
Instead of making smaller donations and missing out on deductions every year, you can group or “bunch” several years’ worth of contributions into one year; it’s a way to clear deduction floors and capture the benefit.
What is the difference between a DAF and a private foundation?
A Donor Advised Fund (DAF) is a tax-advantaged account for charitable giving. You receive immediate tax deductions for contributions and they require minimal administration. A private foundation is a separate nonprofit that you can establish and control, but is associated with higher costs, more compliance requirements and public reporting. In general, DAFs are simpler and more tax-efficient, while private foundations provide greater control and legacy-building opportunities.
Can I give appreciated stock instead of cash?
Yes. You deduct the full market value and skip the capital gains tax you’d owe if you sold it first.
How do QCDs fit into a giving strategy?
If you’re over 70½, a Qualified Charitable Distribution (QCD) sends money from your IRA straight to the charity. If you are of RMD age, these QCD’s will deduct from your RMD amount without adding to your taxable income. It is one of the most efficient ways retirees can give.