Year-End Charitable Giving Strategies
the strategies that save you money
and align with your values.
Charitable giving is one of the few areas of the tax code where strategic timing and structure can significantly improve outcomes for both the donor and the recipient organization. Most people give the way they always have, by check or credit card, in December, to the organizations they care about. That approach works. But it often leaves meaningful tax efficiency on the table.
Here are the strategies worth understanding before year-end.
Donating appreciated securities is almost always better than cash
If you hold appreciated stock, mutual funds, or ETFs in a taxable brokerage account, donating the securities directly to a qualified charity is almost always more tax-efficient than selling the securities, paying capital gains tax, and donating the after-tax proceeds.
When you donate appreciated securities directly, you receive a charitable deduction for the full fair market value of the securities on the date of the gift, and you pay no capital gains tax on the appreciation. The charity, as a tax-exempt organization, also pays no capital gains tax when it sells the securities.
This strategy works best for securities held longer than one year with significant appreciation. It requires initiating a securities transfer to the charity, a process that can take several weeks, which is why starting in September or October matters.
Donor-Advised Funds
give now, distribute later
A Donor-Advised Fund allows you to make a charitable contribution today, receive the tax deduction today, and recommend grants to specific charities over time, including future years. This is particularly useful in years when your income is unusually high, when you want to front-load giving for estate planning purposes, or when you want to donate appreciated securities but haven't decided which organizations to support.
The contribution to the DAF is irrevocable as the money is legally committed to charity, but you retain advisory privileges over which organizations receive grants and on what timeline. Contributions of cash, securities, and certain other assets are eligible.
Qualified Charitable Distributions for IRA owners 70½ and older
If you are 70½ or older and hold a traditional IRA, a Qualified Charitable Distribution allows you to direct up to $111,000 (as of 2026) per person, per year directly from your IRA to a qualified charity. The distribution is excluded from your taxable income, which is more tax-efficient than taking the distribution as income and then donating it, even if you itemize deductions.
The QCD also satisfies your Required Minimum Distribution obligation for the year, up to the amount distributed. For charitably inclined IRA owners who would otherwise take RMDs and donate them, the QCD is almost always the better approach. The transfer must be made directly from the IRA custodian to the charity — personal checks do not qualify.
Bunching contributions
making the standard deduction work harder
The 2026 standard deduction is $32,200 for married filing jointly and $16,100 for single filers. Many taxpayers have total itemized deductions (mortgage interest, state taxes, charitable contributions) that are close to but below the standard deduction. In those cases, itemizing produces no additional benefit over the standard deduction.
Bunching solves this by concentrating two years of charitable contributions into a single tax year, pushing itemized deductions above the standard deduction threshold, then taking the standard deduction in the alternate year. A Donor-Advised Fund makes bunching practical. You contribute two years of giving to the DAF in year one, take the larger itemized deduction, and distribute to your chosen charities at your normal pace.
Values-aligned giving
what it means in practice
For families whose faith shapes their financial decisions, charitable giving is often the most direct expression of that alignment. The strategies above apply equally regardless of which organizations you support. What values-aligned giving adds is the intentionality of treating generosity as a line item in your financial plan. Not an afterthought from December's remaining budget, but a deliberate allocation that reflects what you actually believe about money and its purpose.
What is the most tax-efficient way to give to charity?
For most taxpayers with appreciated securities, donating the securities directly is more efficient than donating cash. You avoid capital gains tax on the appreciation and receive a deduction for the full fair market value. For IRA owners 70½ and older, Qualified Charitable Distributions are typically the most efficient approach. For those whose annual giving doesn't exceed the standard deduction, a Donor-Advised Fund with bunched contributions can unlock itemized deduction benefits.
What is a Qualified Charitable Distribution?
A QCD is a direct transfer of up to $111,000 (2026) per year from a traditional IRA to a qualified charity, available to IRA owners age 70½ and older. The distribution is excluded from taxable income and counts toward the owner's Required Minimum Distribution. It must be transferred directly from the IRA custodian to the charity, personal checks do not qualify.
What is a Donor-Advised Fund and how does it work?
A Donor-Advised Fund is a charitable giving account sponsored by a public charity. You contribute assets to the DAF (cash, securities, or other eligible assets) and receive an immediate tax deduction. The assets grow tax-free in the fund, and you recommend grants to qualified charities over time. The contribution is irrevocable but you retain advisory privileges over distributions.
This content is for educational purposes only and does not constitute personalized tax, legal, or financial advice. Charitable giving strategies depend on individual income, tax situation, asset type, and giving goals. Consult a qualified tax professional or financial advisor before implementing charitable giving strategies. Integritas Wealth Strategies, LLC is a state-registered investment adviser in South Carolina.