Year-end giving isn’t just about generosity. It’s also about using your wealth to reflect your values while making the most of potential tax benefits. As the calendar year comes to a close, it’s the perfect time to review your financial plan, support the causes you care about, and set the stage for a meaningful start to the new year.
Whether you’re planning for retirement, building family wealth, or simply wanting to give back to your community, intentional giving can make a powerful difference. Please give us a call or fill out our contact form if you would like to review your current strategy. Someone from our office will reach out to get the conversation started.
Five Tax-Smart Giving Strategies for Every Stage of Life
No matter where you are in your financial journey, there are smart ways to give that can help you do more good for others and for yourself. Here are five approaches to consider this year:
1. Gifting Appreciated Assets
While writing a check may feel like the easiest way to get your dollars directly to your chosen charity, it’s not always the most efficient way to give. Many people hold investments or property that have grown substantially in value, and those assets can be powerful charitable tools.
Donating appreciated assets allows you to support causes you care about and potentially avoid paying capital gains taxes on the appreciation. When given directly to a qualified charity, you can typically claim a deduction for the asset’s fair market value at the time of the gift, meaning more goes to charity, and less goes to taxes.
Examples of appreciated assets include:
- Publicly traded investments such as stocks, bonds, or mutual fund shares held for more than a year.
- Life insurance policies that are no longer needed for their original purpose.
- Privately held assets such as family business interests, restricted company stock, or real estate holdings.
https://kindnessfp.com/charitable-giving-statistics/#Charitable_Giving_Statistics_in_2025
2. Designating Retirement Accounts to Charity at Death
Traditional IRAs and 401(k)s can be surprisingly tax-inefficient assets to leave to heirs, since distributions are fully taxable to beneficiaries. However, these same accounts can be highly effective charitable vehicles when used thoughtfully.
By naming a charity as a full or partial beneficiary of your retirement account, you can eliminate future taxation on those funds and create a legacy that reflects your personal values. This approach can help make sure every dollar goes directly toward the organizations or missions you care about most.
3. Charitable Trusts, Donor-Advised Funds, and Foundations
For families who want to structure their giving with long-term purpose, charitable trusts, donor-advised funds (DAFs), and private foundations offer flexible ways to align philanthropy with financial planning. These vehicles allow you to contribute assets today, receive potential tax benefits, and create a legacy that supports the causes you care about most.
Charitable Remainder Trust (CRT):
A CRT allows you to donate assets and receive a steady income stream for life or a set number of years. At the end of that term, the remaining assets are directed to your chosen charity. This structure can be effective for individuals with highly appreciated assets, as it could help reduce capital gains taxes while providing ongoing income.
Charitable Lead Trust (CLT):
A CLT works in the opposite direction; the charity receives income from the trust for a specified period, and when that term ends, the remaining assets pass to your heirs. This approach can help reduce estate and gift taxes while ensuring your wealth benefits both your family and your philanthropic priorities.
Donor-Advised Funds (DAFs) and private foundations offer additional flexibility. With a DAF, you can make a tax-deductible contribution now and recommend grants to charities over time. Private foundations allow for more control and involvement, often supporting multigenerational giving and family governance around philanthropy.
4. Qualified Charitable Distributions (QCDs)
Again, for individuals age 70½ or older, QCDs can be one of the most efficient ways to give. A QCD allows you to transfer up to $100,000 per year directly from your IRA to a qualified charity. The transferred amount counts toward your RMD (if applicable), but is excluded from taxable income, lowering both your adjusted gross income and potential Medicare premiums. QCDs are particularly powerful because they blend philanthropy with practical tax management. Note: a QCD can only come from an IRA, not a 401(k).
Together, these options can help you give in ways that reflect your values and make a lasting difference.
5. Cash Donations
Sometimes, simplicity is the best starting point. Cash donations remain the most flexible and straightforward way to give. You can direct support to a favorite nonprofit, respond quickly to community needs, or make year-end gifts that reduce taxable income.
Depending on your filing status and whether you itemize deductions, cash gifts to qualified charities may be tax-deductible. For retirees, cash donations can offset income from Required Minimum Distributions (RMDs). For younger investors, they can help establish a habit of generosity early, and one that compounds in both personal and financial value over time.
What’s Changing in 2026
The recently passed One Big Beautiful Bill (OBBB) includes updates that may affect charitable giving in the future. Starting in 2026:
- New deduction for non-itemizers: Individuals can deduct up to $1,000 ($2,000 for joint filers) for cash gifts to qualifying charities, even if they don’t itemize.
- Itemizers keep the 60% AGI limit: Cash donations to public charities remain deductible up to 60% of your adjusted gross income, though new floors and caps may reduce benefits for some higher-income households.
- Corporate giving limits change: Businesses can only deduct charitable contributions that exceed 1% of taxable income.
With these changes on the horizon, this year is an ideal time to revisit your giving strategy and explore opportunities that can help maximize your tax advantages before new rules take effect.
Your Year-End Giving Checklist
Before December 31, take time to review your plan and ensure your giving reflects both your values and your financial goals:
- Review your income and potential tax exposure for the year.
- Decide which method of giving—cash, appreciated assets, or a DAF—fits your situation.
- Confirm that your chosen charities still align with your priorities.
- Work with your advisor or tax specialist to understand your potential deductions.
- Keep detailed records of all charitable contributions.
- Schedule an annual review to keep your strategy aligned as your life and the tax laws evolve.
Your Next Step
Whether you’re looking to make a difference in your community, support a meaningful cause, or plan a lasting impact for future generations, thoughtful year-end giving can help you do more. Let us help you create a plan that turns your generosity into long-term impact. Please give us a call or fill out our contact form, and someone from our office will reach out to help you get started.
Advisory products and services offered by Investment Adviser Representatives through Prime Capital Investment Advisors, LLC (“PCIA”), a federally registered investment adviser. PCIA: 6201 College Blvd., Suite#150, Overland Park, KS 66211. PCIA doing business as Prime Capital Financial | Wealth | Retirement | Wellness | Family Office | Tax Advisory. Securities offered by Registered Representatives through Private Client Services, Member FINRA/SIPC. PCIA and Private Client Services are separate entities and are not affiliated.