The Giving Season is Here! 5 Ways to Maximize Your Charitable Impact

It’s that time of year again! For many of us, the holiday season is about giving. Whether you donate year-round or focus on the end of the year, maximizing your charitable impact can make the season even more meaningful. Smart planning can help you stretch your giving dollars, reduce stress, and achieve greater satisfaction, both personally and financially.

If you’re wondering how to align your finances with your giving goals, now’s the time to plan. Organization and strategy are key. Follow these five tips to maximize your charitable giving strategy this holiday season.

1. Do Your Research

By using sites such as Guidestar or the Better Business Bureau’s Wise Giving Alliance, you can learn more about the groups you’re interested in offering donations.

The organization you’re involved with should also be able to provide registration information including 501(c)(3) - this means an organization is characterized by the IRS as a "Non-Profit". You may also use the tax-exempt organization search tool available on the IRS website to obtain specific information as well.

2. Bundle Your Donations

The Tax Cuts and Jobs Act of 2017 raised the standard deduction ($14,600 for single filers and $29,200 for married couples filing jointly in 2024). As a result, fewer people are itemizing their deductions. But there’s a workaround: bundling your donations.

Instead of donating smaller amounts annually, save and make a larger donation every few years to surpass the standard deduction threshold. This strategy allows you to itemize in high-donation years and take the standard deduction in others.

To make bundling easier, consider setting up a donor-advised fund (DAF). A DAF lets you:

• Make a charitable donation and claim the tax deduction immediately.
• Decide when and where to distribute the funds over time.
• Adjust your giving strategy as your life changes.

A DAF creates flexibility so you can give thoughtfully while maximizing tax benefits

3. Donate Appreciated Stock

Gifting appreciated stocks or other valuable assets, such as artwork or antiques, can provide significant tax advantages. When you donate these assets, you may avoid paying capital gains tax on their appreciation. Instead, the full market value of the asset may be eligible for a tax deduction.

This strategy is particularly valuable for high-income earners, but even smaller portfolios can benefit from it. Donating appreciated investments is a powerful way to support causes you care about while minimizing tax liability

4. Utilize Your IRA

If you’re over 70?, your IRA can be a tax-efficient tool for charitable giving. A Qualified Charitable Distribution (QCD) allows you to transfer funds directly from your IRA to a qualifying charity. Here’s why this is a smart move:

• Reduce Taxable Income: QCDs lower your adjusted gross income (AGI), potentially reducing Medicare premiums and other income-related taxes.
• Satisfy RMDs: QCDs count toward your required minimum distributions (RMDs) without increasing taxable income.

You can transfer up to $100,000 per year per individual ($200,000 for married couples with separate IRAs). This strategy provides a win-win: satisfy your RMDs while supporting your favorite causes.?

5. Reassess Your Portfolio and Priorities

The end of the year is a perfect time to reflect on your financial goals and philanthropic priorities. Your interests and circumstances may evolve over time, so it’s essential to ensure your giving strategy aligns with your current values.

Regularly monitoring your portfolio ensures your assets are working toward your goals, whether that’s optimizing tax efficiency or supporting new causes. You should review your financial plan at least every year, this includes your giving plan as well.

Why Now Is the Best Time to Give

Giving feels especially meaningful during the holidays, but it’s also a strategic time of year to maximize tax benefits. Thoughtful planning not only amplifies the impact of your donations but will also bring you joy and purpose through the season.

By following these strategies, you can create a charitable giving plan that works for you — financially and emotionally. Whether it’s through careful research, bundling donations, leveraging appreciated assets, or using an IRA for QCDs, there are countless ways to give back while securing your financial future

HAPPY GIVING!