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Supporting causes close to your heart and reducing your tax burden don’t have to be mutually exclusive. In fact, with the right strategy, you can maximize your philanthropic impact while also taking advantage of key tax-saving opportunities.

In this episode of Money Wisdom, Nicholas J. Colantuono, CFP® shares three year-end charitable giving strategies to consider.

1. Donate Stock or Other Non-Cash Assets

One of the most effective giving strategies is donating appreciated stock or other non-cash assets. Rather than writing a check or donating cash, you can transfer highly appreciated investments directly to a charitable organization. By doing so, you can generally deduct the current market value of the asset while avoiding capital gains taxes.

If you’ve owned a stock for many years and have accumulated significant gains, this strategy is worth considering. The charity also benefits from this scenario because it can typically sell the stock without paying taxes.

Want clarity about your tax situation? Get your free Taxes Simplified guide by texting “OFFER” to 800-757-0436.

2. Use Donor-Advised Funds (DAFs)

Another increasingly popular option is to use a donor-advised fund (DAF). A donor-advised fund allows you to make a charitable contribution today and receive an immediate tax deduction. This approach also offers considerable flexibility, as you can decide later which organizations will ultimately receive the funds.

Assets contributed to the DAF can remain invested and potentially grow over time. DAFs also simplify recordkeeping because all charitable distributions come from a single account.

3. Use Qualified Charitable Distributions (QCDs)

For many retirees, qualified charitable distributions (QCDs) can be an especially powerful tool. Beginning at age 70½, you can transfer money directly from an IRA to a qualified charitable organization. In 2026, you can contribute up to $111,000 through a QCD.

Unlike a normal IRA withdrawal, a QCD does not count as taxable income. This can create significant tax savings while still allowing you to support the causes you care about. A QCD can also satisfy all or part of your required minimum distribution (RMD).

If you’re charitably inclined, year-end planning can be an ideal time to evaluate these strategies. To make charitable gifts in the most tax-efficient manner, be sure to consult a financial professional for guidance.