In our family, the holiday season is a time to reflect on what we’re grateful for and carry on a tradition of giving. Supporting causes that we care about is one way to share that gratitude and bring a little more meaning to the season. As the holidays approach, many families begin thinking about supporting the causes they care about. A little planning can help you give in a way that benefits organizations close to your heart while keeping your own financial goals on track.

That is part of the value of financial planning: bringing your investments, income needs, taxes, and personal priorities together so individual decisions always support the bigger picture. Here are some common ways to leverage your year-end generosity in efficient ways.

Give directly from your IRA

If you are age 70½ or older, you may be able to give directly from your IRA through a qualified charitable distribution, often called a QCD.

A qualifying gift stays out of your taxable income. If you are required to take an annual minimum withdrawal from your IRA, it can also count toward that requirement. This benefit is available even if you do not itemize deductions on your tax return.

The important detail is how the gift is made: the money must go directly from your IRA to an eligible charity. Taking a withdrawal yourself and then donating it does not provide the same treatment. We often complete QCDs using checkbooks issued from a client’s retirement account. Donor-advised funds are not eligible recipients, and you cannot claim a separate charitable deduction for a QCD excluded from income.

Annual limits and other eligibility rules apply. Contact us before taking your remaining required withdrawal so we can help coordinate the gift with your retirement income plan.[1]

Consider donating investments instead of cash

Writing a check is familiar, but investments you already own may offer another way to give.

If stocks or funds in your taxable investment account have increased in value and you have held them longer than one year, donating shares directly to an eligible charity can avoid realizing the taxable gain from selling them. If you itemize, you may also qualify for a deduction based on their current market value, subject to applicable limits.

The order matters: donating the shares directly is different from selling them and donating the proceeds.

If an investment has lost value, selling it first and then donating cash may be more useful. The sale may provide a tax loss, subject to the rules that apply to investment losses.

Reviewing potential gifts alongside your portfolio allows us to consider both the tax implications and how the remaining investments support your goals.[2][3]

Be thoughtful about timing

You do not necessarily have to make the same size donation every year.

For some families, combining several years of planned gifts into one year can make itemizing deductions more worthwhile. This deserves a closer look when income is unusually high or other deductible expenses are larger than normal.

A donor-advised fund may help with this approach. You contribute cash or investments, potentially receive a deduction in that year, and recommend gifts to eligible charities over time.

The contribution is permanent: those assets are committed to charity and cannot be reclaimed for personal use. The sponsoring organization retains legal control, and fees may apply. Later grants do not create another deduction.[2][4]

Keep the new giving rules in mind

Starting in 2026, eligible cash donations may provide a federal deduction even for people who take the standard deduction—up to $1,000, or $2,000 for married couples filing jointly. Gifts to donor-advised funds do not qualify for this particular benefit.

For people who itemize, a new income-based threshold means a portion of their charitable giving generally will not be deductible. Other limits may also affect the tax savings.

You do not need to navigate these calculations alone. Reviewing your giving plan with us and your tax professional can help you understand your options before making a gift.[5][6]

Start with the purpose, then choose the method

The organizations you support and the reasons you support them come first. Financial planning helps connect those intentions with an affordable amount, an appropriate giving method, and your longer-term needs.

Keep donation receipts and allow time for transfers to be completed before year-end. For individual gifts of $250 or more, the IRS generally requires a written acknowledgment from the charity; investment gifts may require additional reporting.[2]

If you are considering a year-end gift, please reach out before initiating a withdrawal, sale, or transfer. As your advisors, we can help you evaluate how the gift fits your financial plan and coordinate with your tax professional. A timely conversation can make the process easier and help you give with greater confidence.

Best,

Chad

This article provides general education about federal tax rules and does not constitute individual tax or legal advice. State tax treatment may differ. Eligibility, limits, and documentation requirements apply. Consult your tax professional about your circumstances.

IRS References

[1] Publication 590-B: Distributions from Individual Retirement Arrangements—Qualified Charitable Distributions[2] Publication 526: Charitable Contributions[3] Topic No. 409: Capital Gains and Losses[4] Donor-Advised Funds[5] Publication 6196: Charitable Contribution Deduction Tips for Non-Itemizers[6] Publication 505: Tax Withholding and Estimated Tax—What’s New for 2026