By Steven Jon Kaplan

Prior to 2026, if you made a charitable contribution, then it would go on your Schedule A along with all of your other itemized deductions. To get a tax break, your total itemized deductions on Schedule A would have to exceed your standard deduction. This prevented many people from saving on their taxes, other than reducing your long-term capital gains through direct share contributions which was explained earlier. However, the rules have been improved for 2026 and future years. Without having to itemize, you are now allowed to deduct up to $1,000 per tax return ($2,000 for a married couple filing jointly) in total charitable deductions paid in cash (includes credit card, check, electronic funds donation, but not stock). For a married couple, this means that you can donate a total of $2,000 per calendar year and deduct the whole $2,000 from your taxable income if you use the standard deduction. A deduction reduces taxable income, and is not a tax credit reducing tax dollar for dollar.

This is not personal tax or legal advice, which you should seek only from your own tax or legal advisor for your individual situation.

For questions about VRG programs, email [email protected] or call (410) 366-8343.