Charitable Year-End Giving Strategies

As the year comes to a close, many individuals look for meaningful ways to give back. Strategic charitable giving not only benefits the organizations and causes you care about but can also provide financial advantages, such as tax savings. Here are some effective year-end giving strategies to consider.

Donate Appreciated Assets

Instead of cash donations, consider gifting appreciated stocks, mutual funds, or other investments held for more than a year. By donating directly to a qualified charity, you may avoid capital gains taxes while still receiving a charitable deduction for the fair market value of the asset. This approach allows your giving to go further.

Leverage a Donor-Advised Fund (DAF)

A donor-advised fund allows you to:

· Make a charitable contribution now

· Receive an immediate tax deduction

· Distribute grants to charities over time

This option is especially helpful if you’ve had a high-income year and want to capture deductions now while planning your giving for the future.

Consider Qualified Charitable Distributions (QCDs)

If you are 70½ or older, you may give directly from your IRA to a charity through a Qualified Charitable Distribution. QCDs can count toward your Required Minimum Distribution (RMD) and are excluded from taxable income—making them a highly tax-efficient giving method.

Bunch Contributions for Tax Efficiency

With higher standard deduction levels, you may not itemize deductions every year. By “bunching” charitable contributions into one tax year, you may exceed the standard deduction threshold and maximize your tax savings while maintaining your giving goals.

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