Year-End Charitable Giving Strategies

Year-End Charitable Giving Strategies.

Smart Giving Before the Clock Runs Out

Year-end is a natural moment to revisit how your giving aligns with your financial goals. A few intentional moves—done before December 31—may influence your tax situation and strengthen your legacy.

Why Families Think About This Now

  • Charities rely on year-end momentum.
  • Tax rules are calendar-year driven.
  • Retirement, RMDs, and legacy goals often intersect here.
  • Gifts made now can simplify next year’s planning.

Here are a few strategies to consider:

  1. Donor-Advised Funds (DAFs): Flexible Tools for Structured Giving

A DAF may allow you to:

  • Make a single contribution, then recommend grants over time.
  • Potentially receive a deduction in the year you contribute, depending on IRS rules, your eligibility, and circumstances.
  • Consolidate your charitable giving into one strategy—which may be useful for retirees seeking a more streamlined giving approach.

Best for: Families who want to give now but pace the impact over many years.

  1. Appreciated Assets: Turning Growth Into Good

Instead of donating cash, many families gift:

  • Stocks
  • ETFs
  • Mutual funds

If held longer than one year, these gifts may:

  • Help reduce or eliminate capital-gains tax on appreciated assets, depending on IRS rules
  • Increase the amount the charity receives compared to selling first and gifting cash
  • Reduce reliance on cash to meet giving goals

Best for: Investors with legacy intentions and highly appreciated positions.

  1. Annual Gifting: Small Moves, Big Meaning

You can give up to the annual exclusion amount per person without using your lifetime exemption.
This approach may help you:

  • Provide support to family members during your lifetime
  • Reduce the size of your taxable estate over time
  • Combine giving with life milestones (education, housing, caregiving)

Best for: Grandparents and parents who want to make a practical, immediate difference.

  1. Why Timing Matters

To count for the current tax year, gifts generally need to be completed, processed, and cleared by December 31, subject to custodian timelines.

Market delays and custodian timelines can affect this — start early when possible.

  1. Putting It All Together

The right giving approach aligns with:

  • Your retirement income plan
  • Your RMD needs
  • Your long-term family goals
  • The causes you care about most

For many families, generosity becomes even more meaningful when it fits into their broader financial strategy.

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