Year End Charitable Giving Strategies to Maximize Your Impact (and Tax Savings)

As the holidays approach, many people look for meaningful ways to give back — and smart ways to finish the year on a strong financial note.The good news? With the right year end charitable giving strategies, you can do both.

Whether you’re donating cash, appreciated assets, or through a donor-advised fund, thoughtful planning before December 31 can make your generosity go further — for both your favorite causes and your financial goals.

Donate Appreciated Assets Instead of Cash

One of the most tax-efficient ways to give is by donating investments that have gone up in value — like stocks, ETFs, or mutual funds you’ve held for more than a year.

When you donate appreciated assets directly to a qualified charity:

• You avoid paying capital gains taxes on the appreciation.

• You can deduct the fair market value of the gift if you itemize deductions.

It’s a powerful way to give more without spending more — and your charity receives the full value of your contribution.

Use a Donor-Advised Fund (DAF)

If you want to make a large charitable contribution this year but need more time to decide which organizations to support, a donor-advised fund can be a great option.

Here’s how it works:

1. You contribute cash or assets to the fund now and get an immediate tax deduction.

2. You can invest the funds and recommend grants to charities later, even in future years.

This flexibility makes DAFs one of the most versatile year end charitable giving strategies available.

Take Advantage of Qualified Charitable Distributions (QCDs)

If you’re 70½ or older, you can make a Qualified Charitable Distribution (QCD) directly from your IRA to a qualified charity — up to $100,000 per year.

Why it’s beneficial:

• The amount you give counts toward your Required Minimum Distribution (RMD).

• The donation is excluded from your taxable income, even if you don’t itemize deductions.

This strategy can be especially useful for retirees who want to reduce taxable income while supporting causes they care about.

Bunch Your Donations for a Bigger Deduction

Because of the higher standard deduction, many people no longer itemize every year.A creative workaround is to “bunch” several years of donations into one tax year.

By combining multiple years’ worth of giving into a single large contribution, you may exceed the standard deduction threshold and benefit from itemizing — then take the standard deduction in the following year.

This approach works especially well when paired with a donor-advised fund, giving you flexibility on timing and distribution.

Keep Records and Verify Charities

To ensure your charitable giving brings both emotional and financial rewards:

• Confirm your charity’s status using the IRS Tax-Exempt Organization Search.

• Keep written receipts or acknowledgment letters for every donation.

• Remember that only donations to qualified 501(c)(3) organizations are tax-deductible.

  
  

Good recordkeeping helps you avoid headaches later — and keeps your tax filing smooth.

Give with Purpose and Plan Ahead

Year-end giving isn’t just about writing a check — it’s about aligning your generosity with your financial goals.A little planning can help you:

• Support the causes you love.

• Reduce your tax burden.

• Step into the new year feeling financially confident and fulfilled.

We can help you explore your charitable options and work directly with your tax professional to make sure your giving fits seamlessly into your overall financial plan.Together, we’ll make sure your generosity has the greatest possible impact — for both your community and your financial future.

Thoughtful giving today can lead to greater impact tomorrow — and we’re here to help you make that happen.