Make Your Charitable Giving Go Further: What to Consider Before Year-End

For many individuals and families, charitable giving is about more than writing a check. It is an opportunity to support organizations they believe in, invest in their communities and make a meaningful difference in the lives of others. 

But while the decision to give is often personal, how a donation is made can have important financial implications.

Whether it is an annual contribution to a favorite nonprofit, donations to multiple organizations or a larger charitable gift, a little planning can help make the most of that generosity. 

And with new federal charitable deduction rules in effect for 2026, understanding the available options is especially important. 

For an overview of the changes, read Part 1: [Charitable Giving in 2026: What the New Tax Rules Mean]

1. Is There a More Tax-Efficient Way to Give?

For many people, making a charitable donation means writing a check or entering a credit card number. But cash isn’t the only way to give. 

Individuals who own investments that have increased significantly in value may benefit from donating those assets directly to charity rather than selling them first and donating the proceeds. 

Depending on the circumstances, this approach may help avoid capital gains taxes while providing a potential charitable deduction. 

The asset being donated can be just as important as the amount of the contribution.

2. Does the Timing of a Donation Matter?

For those who regularly support charitable organizations, the timing of contributions may not be a major consideration. 

However, when donations are made can affect the tax benefits available. 

For some taxpayers, coordinating charitable contributions across multiple years may be more advantageous than making the same amount of donations annually. Others may benefit from making a larger contribution in a year when their income is unusually high. 

With the new 0.5% income threshold for itemized charitable deductions beginning in 2026, the timing and amount of contributions may be particularly relevant. 

3. Are There Charitable Giving Opportunities Through Retirement Accounts?

For retirees, charitable giving may also present an opportunity to manage taxable income. 

Individuals age 70½ or older may be eligible to make charitable contributions directly from their IRAs through qualified charitable distributions (QCDs). 

These contributions can potentially satisfy all or part of a required minimum distribution while excluding the qualifying amount from taxable income. 

Because eligible distributions are excluded from income rather than claimed as itemized deductions, they may provide a different tax benefit than traditional charitable donations. 

QCDs must be made to eligible charitable organizations; contributions to donor-advised funds do not qualify.

4. Is There a Longer-Term Charitable Giving Plan?

Charitable giving doesn’t have to be limited to individual donations throughout the year. 

For individuals and families who support multiple causes or anticipate making significant contributions over time, establishing a more structured giving plan may provide additional flexibility. 

For example, donor-advised funds allow individuals to make a charitable contribution in one year while recommending grants to eligible charitable organizations over time. 

This approach may offer flexibility, particularly for those who want to coordinate their giving with broader financial, tax or estate planning goals. 

Make Your Generosity Go Further 

With year-end approaching, it is worth reviewing charitable giving plans and considering how the amount, timing and type of contributions may affect the available tax benefits. 

FGMK’s tax professionals work with individuals and families to evaluate charitable giving strategies as part of their broader financial and tax plans. 

Contact our team to discuss charitable giving goals before year-end.