Make an Impact: Year-End Charitable Giving Tips
David Todd

As the year comes to a close, many of us are thinking about how we can make a difference before the New Year's celebrations begin. Charitable giving is not only a wonderful way to support the causes you care about, but it also offers an opportunity to reduce your tax bill. With the December 31, 2025, deadline looming, now is the perfect time to consider your year-end contributions.

Emphasize the December 31, 2025, Deadline

To qualify for tax deductions in the 2025 tax year, all charitable contributions must be made by December 31. This includes checks (if mailed by December 31), credit card donations (even if paid later), and online contributions that are date-stamped by the deadline.

Discuss the Tax Benefits of Charitable Giving

For those who itemize deductions, you may be able to deduct up to 60% of your adjusted gross income for cash donations. Donating non-cash assets such as household goods or appreciated stocks is also beneficial, enabling you to avoid capital gains taxes while claiming the full value of the donation. Additionally, individuals 70½ or older can use Qualified Charitable Distributions (QCDs) to give up to $108,000 from an IRA tax-free, helping to satisfy Required Minimum Distributions (RMDs) for those aged 73 or older.

Offer Practical Steps to Maximize Benefits

Take these steps to make the most of your charitable contributions:

  • Ensure the charity is IRS-qualified (use the IRS Tax Exempt Organization Search tool).
  • Documentation is crucial: obtain a written acknowledgment for gifts of $250 or more and keep a bank record or receipt for smaller gifts.
  • Consider donating appreciated assets rather than cash for potentially bigger tax breaks.
  • Think about timing—if your income is higher this year, giving now might be more beneficial.
  • Explore the “bunching” strategy: combining donations into one year to exceed the standard deduction and take advantage of itemizing.

Year-end charitable giving is a powerful tool for personal tax savings and making a difference. With the deadline approaching, there’s still time to act. Consider consulting with a financial professional if you’re unsure how much to give or how your donations might impact your tax return. Together, we can make a meaningful impact before the year ends.