Charitable giving is about generosity, purpose, and supporting the causes you care about. But with a thoughtful approach, it can also be an effective tool for tax planning and long-term financial strategy. If you’re planning to give before year-end, here are smart ways to make the most impact.
Donate appreciated securities
Giving long-term appreciated stock directly to a nonprofit allows you to avoid capital gains tax while still deducting the full value of the donation. This can be far more efficient than donating cash.
Use a donor-advised fund (DAF)
A DAF lets you make a charitable contribution today, receive an immediate tax deduction, and distribute the funds to charities over time. It’s an excellent strategy if you’re having a high-income year or want to plan your giving more intentionally.
Make qualified charitable distributions (QCDs)
If you’re age 70½ or older, you can donate up to $100,000 directly from your IRA to qualified charities. This counts toward your RMD and reduces your taxable income. It’s a popular strategy for clients who want to give and also manage their tax picture.
Bunch your donations
If you’re close to the standard deduction threshold, bunching several years’ worth of charitable gifts into one tax year may allow you to itemize deductions and receive greater tax benefits.
Give with purpose
Financial planning and philanthropy pair well together, in our opinion. Whether you’re supporting a cause that has personal meaning or building a family giving tradition, the most impactful giving is intentional and aligned with your values.
If you want to explore the best strategy for your situation, we’re happy to help you evaluate your options before the year ends.
Disclosures
Content in this material is for general information only and not intended to provide specific advice or recommendations for any individual.
This material was created using Artificial Intelligence (AI) tools.
