Gift Planning Strategies | Meaden & Moore

As the year draws to a close, many individuals begin evaluating charitable giving opportunities—not only to support the causes they care about but also to plan ahead for potential tax savings.

Charitable giving can be more than an act of goodwill; it can be a powerful component of a broader financial strategy. While the tax landscape may evolve, several well-established planning techniques remain effective year after year.

For insights on how recent legislation may influence charitable giving, read The OBBBA’s Impact on Charitable Giving.

Whether you’re considering year-end donations, planning for a significant income event, or revisiting your estate plan, now is the ideal time to put smart gift strategies in motion.

Key Planning Considerations:

To maximize the impact of your charitable giving, it is important to consider the following strategies that align with your overall tax and financial goals:

• Optimize the timing of charitable contributions to align with tax planning goals
• Bunch donations to exceed the standard deduction
• Utilize appreciated assets or IRA distributions for greater tax efficiency
• Coordinate giving with estate, retirement, and investment planning

Make the Most of Year-End Timing

The final weeks of the year provide a critical window for charitable giving—especially for those expecting a higher-than-usual income year, realizing capital gains, or preparing to meet required minimum distributions (RMDs).

Contributions made by December 31 are typically deductible on your current-year federal return, assuming you itemize deductions (see IRS Publication 526, Charitable Contributions). With increased standard deduction thresholds in place for 2025 ($15,750 for single filers, $31,500 for married filing jointly), evaluating whether your total itemized deductions exceed this limit is essential for effective tax planning.

Quick Tip: If you plan to donate appreciated securities, allow extra time in December to ensure the transaction is completed by year-end and meets IRS substantiation requirements.

Consider Bunching Gifts for Greater Tax Impact

For many taxpayers, charitable donations alone may not justify itemizing every year. That’s where bunching comes in.

By grouping multiple years’ worth of planned gifts into a single tax year, you may exceed the standard deduction and benefit from itemizing. To maintain flexibility, many donors use a Donor Advised Fund (DAF)—which allows for an immediate deduction and staggered grantmaking over time.

IRS Reference: See Notice 2017-73 and IRS FAQs on Donor Advised Funds for further details on qualification and rules.

Leverage Appreciated Assets and IRA Distributions

Donating long-term appreciated securities—such as publicly traded stocks or mutual funds—offers two major tax advantages:

• Avoidance of capital gains tax on the appreciated amount
• Deduction of the asset’s fair market value (if held for more than one year)

Alternatively, individuals aged 70½ and older can make Qualified Charitable Distributions (QCDs) from their IRAs—up to $108,000 per person in 2025. QCDs:

• Count toward your RMD
• Are excluded from gross income (even if you don’t itemize)
• Must be transferred directly from the IRA custodian to the qualified charity

Align Giving with Broader Financial and Estate Planning

Strategic charitable giving is most effective when integrated into your long-term financial plan. Consider aligning your philanthropic goals with:

• Income and capital gains management
• Estate planning and wealth transfer strategies
• Business succession or liquidity events
• Retirement income needs and RMD strategies

Sophisticated giving tools like Charitable Remainder Trusts (CRTs), Charitable Lead Trusts (CLTs), and testamentary bequests can support legacy goals while creating meaningful tax advantages. These strategies often require coordination with your tax, legal, and financial advisors to ensure compliance and effectiveness.

Final Thoughts: Act Before Year-End

Charitable giving is most impactful when it’s strategic and timely. As you prepare for year-end, consider:

• Reviewing your income and tax position
• Identifying appreciated assets for donation
• Evaluating bunching or DAF strategies
• Exploring QCDs if you’re over 70½
• Confirming all gifts are completed before December 31

At Meaden & Moore, we partner with clients and their advisors to create personalized giving plans that maximize impact and optimize tax results. We’re here to help you give intentionally—and make every dollar count.

Let’s build a smarter giving strategy together. To discuss charitable giving options for 2025 and beyond, contact Meaden & Moore today.