Three years ago, Chariot, the payment and processing company for donor advised funds, declared the second Thursday of October National Donor Advised Funds Day. A few reminders about substantiation of charitable contributions to donor advised funds and deductibility of charitable contributions in 2026:
- Substantiation Statement About Exclusive Legal Control. In addition to the generally applicable requirement under IRC § 170(f)(8) to obtain a contemporaneous written acknowledgment (also called a gift letter) from the donor advised fund, the gift letter obtained from the fund by donors must also state that the donor advised fund has exclusive legal control over the assets contributed. IRC § 170(f)(18) (added by PPA 2006, Pub. L. 109-280 § 1234).
- Itemizers: 0.5% Floor. Individuals who itemize can deduct only the portion of charitable contributions that exceed 0.5% of the donor’s adjusted gross income. IRC § 170(b)(1)(I) (added by OBBBA Pub. L. 119-21 § 70425(a)).
- 35% Maximum Percentage Limitation. If an individual’s tax bracket exceeds 35%, the amount of itemized deductions allowable is generally reduced so that the maximum tax benefit does not exceed 35%. IRC § 68(a) (added by OBBBA Pub. L. 119-21 § 70111(a)).
# # #
If you need help resolving a tax dispute with the IRS, please reach out to our team at K. Tyson Law. This article does not establish an attorney-client relationship and should not be construed as applying to a particular tax situation.
October 8, 2026. Written by Kim Tyson, J.D., LL.M.. and Karin Gross, J.D., LL.M.