Donations from generous people like you fund over 170 programs and services that bring hope and healing to Phoenix Children’s patients and their families. With continued tax law changes, now is the perfect time to adopt a savvy giving strategy that maximizes your impact and your tax benefits. There are many ways you can potentially reduce your tax burden while giving the gift of hope to children in need of lifesaving care.
What’s New for 2026
This year offers unique opportunities to make your charitable gifts go further.
- If you take the standard deduction: With the above-the-line federal deduction, you may be able to deduct up to $1,000 (single filers) or $2,000 (married filing jointly) in cash gifts to nonprofits like Phoenix Children’s, even if you don’t itemize. Gifts to donor-advised funds do not qualify.
- If you itemize: Only charitable gifts above 0.5% of your adjusted gross income (AGI) are deductible. For example, with an AGI of $200,000, the first $1,000 you give in a year isn’t deductible. Donors in the top tax bracket also see a slightly smaller tax benefit per dollar given. Strategies like IRA gifts and donations of appreciated stock can help ease this burden.
- If you’re 70½ or older: IRA gifts are an even better fit. They aren’t affected by the new limits, and you don’t need to itemize.
To qualify for a 2026 federal tax deduction, gifts must be completed by December 31, 2026. If you’re sending a check via USPS, make sure to mail it early to avoid any delays. Credit card gifts must appear on your statement by December 31, 2026. Gifts of securities, QCDs and assets may require extra time—be sure to start the process early.
1. Give and get it back with the Arizona Charitable Tax Credit.
With this dollar-for-dollar credit—up to $506 for individual filers and $1,009 for joint filers—you can get the value of your gift back on your state income taxes. Any charitable donation made by April 15, 2027, can still be used toward your 2026 Arizona Charitable Tax Credit. When you file your state tax return, you will need to provide Phoenix Children’s qualifying charitable organization (QCO) code, 20551, on Form 321.
2. Bunch your gifts for maximum impact.
Consider “bunching” your charitable gifts in 2026. By concentrating several years’ worth of giving into this year, you can itemize and maximize your deductions. For example, if you typically give $10,000 annually, giving $40,000 this year could increase your tax deductions by $25,000 compared to spreading gifts over four years. You can bunch gifts by paying multiyear pledges in advance or moving assets into your donor-advised fund. To learn more about this strategy, please reach out to a member of our Gift Planning team at giftplanning@phoenixchildrens.com.
3. Give a gift of stock.
By donating long-term appreciated stock directly to Phoenix Children’s, you can bring hope to children and families while receiving an income tax deduction for the fair market value and avoiding capital gains tax at transfer.
If you want to maintain your portfolio, consider a “charitable swap” (donate appreciated stock, then repurchase the same stock with cash).
4. Make a QCD from your IRA.
IRA account owners age 70 1/2 and older can transfer up to $111,000 per year to charity through a qualified charitable distribution (QCD). If you’re married, you and your spouse can each give from your own IRA.
If applicable, this can satisfy your required minimum distribution (RMD) and exclude the amount donated from taxable income. You don’t pay any income tax on the transfer and don’t need to itemize deductions to take advantage of a QCD.
If you are required to take RMDs but don’t need or want the funds, this may be a good strategy for you. Your contribution can make a significant difference in the lives of children and their families. Simply contact your IRA custodian and direct them to make a transfer from your IRA directly to Phoenix Children’s.
5. Direct a grant from a DAF.
If you’ve previously funded a donor-advised fund (DAF), you can direct a grant to Phoenix this year to take advantage of higher deduction limits and bunching strategies. This is a wonderful opportunity to turn your previous contributions into a heartfelt gift that brings joy and hope to the lives of those who need it most.
6. Create a charitable gift annuity.
Are you searching for a reliable way to safeguard your financial stability amidst the unpredictable stock and real estate markets? A charitable gift annuity (CGA) is a unique opportunity to support Phoenix Children’s while ensuring your own financial security. By making a CGA, you can receive fixed payments for life, providing you with a stable and dependable source of income.
These fixed annuity payments remain unaffected by economic fluctuations, giving you peace of mind in uncertain times. If you itemize your deductions on your income tax return, a CGA may qualify for a deduction, potentially reducing your tax liability. It’s a win-win situation—you secure your financial future while contributing to the well-being of Arizona children and families.
You can also use IRA funds for a one-time CGA, combining lifetime income with tax benefits.
7. Give a gift in your will or trust.
Consider naming Phoenix Children’s as a beneficiary under your will or trust. Phoenix Children’s has partnered with Freewill to offer you a free online will-writing tool that will guide you through the process in just 20 minutes, no matter where you are in your life’s journey.
And this holiday season, you have a special opportunity to maximize your impact with the Phoenix Children’s Legacy Challenge. When you disclose that you’ve made an estate gift to Phoenix Children’s, 10% of the gift will be matched, up to $25,000.
By leaving a gift to Phoenix Children’s in your will or trust, you ensure that your values and philanthropic spirit will continue to thrive for generations to come. You can choose to support specific programs, establish an endowed fund, or provide unrestricted funds to give Phoenix Children’s the flexibility to address emerging needs. This level of personalization allows your philanthropy to remain true to your vision and create the greatest possible impact.
8. Take advantage of a zero-tax gift and sale.
If you’re looking for a way to access the equity in an appreciated asset, there are many ways we can work with you. Donating appreciated real estate, such as a home, vacation property, undeveloped land, or commercial property, can transform lives at Phoenix Children’s. Rather than losing capital to taxes, you can invest in children’s health while benefiting from advantageous tax savings and even creating a lifetime income. Before you sell your business, land or other items of value, consider exploring strategies to take one asset and create multiple outcomes.
9. Make a gift from a qualified retirement plan.
If you have a retirement plan such as an IRA or a 401(k), the individual beneficiaries of the plan will pay income tax when they eventually receive it. Instead, consider naming Phoenix Children’s as the beneficiary of some or all of it. Because charities don’t pay income tax, the full amount of the retirement account will directly benefit Phoenix Children’s. You can also create a charitable gift annuity from your testamentary IRA distribution. This will allow you to stretch your gift to your heirs longer than the law allows you to give directly to them. This strategy will reduce their tax burden while creating your charitable legacy.
10. Make a gift of life insurance.
As the year draws to a close, it’s an ideal time to assess your essential documents, including life insurance policies. Particularly, paid-up whole life policies often hold considerable value that can be transformed into a charitable gift, potentially offering you tax deductions. Consider the impact you can make by choosing to gift your life insurance policy to Phoenix Children’s. If you have a policy that has fulfilled its original purpose, such as providing for minor children who have now become financially independent adults, redirecting its value to support our mission is a beneficial way to leave a lasting legacy.
11. Donate a vehicle.
Do you have an old car, truck, boat, motorcycle or motor home taking up space and becoming a burden? Consider giving it new purpose by donating your vehicle to Phoenix Children’s. Phoenix Children’s has partnered with the Arizona Humane Society to make donating your vehicle easy, from pickup to tax receipt. This partnership allows you to support both Phoenix Children’s and the Arizona Humane Society while maximizing your tax deduction.
12. Donate cryptocurrency.
With crypto on the rise, now is the perfect time to make an impact. By donating to Phoenix Children’s, you can transform your digital gains into lifesaving care for kids, avoid capital gains taxes and enjoy a tax deduction—all while growing hope for the next generation
*This information is not intended as tax, legal or financial advice. Gift results may vary. Consult your personal financial advisor for information specific to your situation.
Learn more about these and other savvy giving strategies.
More Ways to Give
If you have a story about how your life has been touched by Phoenix Children’s, we want to hear from you.
