Whether you take the standard deduction, itemize your deductions, or simply want to be more intentional with your giving, there are several ways to support the causes you care about while being thoughtful about your broader tax strategy.
For Those Taking the Standard Deduction
Bunch Charitable Contributions
In 2025, the standard deduction is $15,000 for single filers and $30,000 for married couples filing jointly. By combining several years’ worth of charitable donations into a single year, you may be able to exceed this threshold, itemize deductions, and increase your overall tax benefit.
Use a Donor Advised Fund (DAF)
A DAF allows you to make a charitable contribution, receive an immediate tax deduction, and recommend grants to charities of your choice over time. Once the contribution is made, the assets can be invested and potentially grow tax-free. DAFs are especially useful for bunching donations in a high-income year and managing long-term giving.
Leverage Qualified Charitable Distributions (QCDs)
If you’re age 70 ½ or older, you can donate up to $108,000 directly from your IRA to a qualified charity in 2025. QCDs count toward your required minimum distribution (RMD) and are excluded from taxable income. This amount is per individual, so married couples may be able to contribute up to $216,000 from their respective IRAs.
For Those Who Itemize Tax Deductions
Pair Charitable Giving with Tax-Loss Harvesting
If you own investments that have declined in value, consider selling them to realize a capital loss as part of your tax-loss harvesting strategy. You can then donate the cash proceeds, which may qualify for a charitable deduction. Meanwhile, the realized loss can offset capital gains or up to $3,000 of ordinary income. Any unused losses can be carried forward to future tax years.
Donate Appreciated Assets Instead of Cash
Donating long-term appreciated assets, such as stocks or real estate, allows you to deduct the fair market value while avoiding capital gains tax. The charity receives the full value tax-free, maximizing the impact of your gift.
Use Charitable Contributions to Offset Retirement Account Withdrawals
If you’re taking sizable distributions from qualified retirement accounts (e.g., IRAs, 401(k)s, 403(b)s), making charitable contributions in the same year can help offset the resulting taxable income and reduce your overall tax liability.
Legacy Oriented Giving Strategies
Name a Charity as Your Retirement Account Beneficiary
Retirement accounts like IRAs and 401(k)s are fully taxable to heirs but tax-free if left to qualified charities. Naming a charity as a beneficiary can remove the asset from your taxable estate and potentially reduce estate taxes.
Establish a Charitable Remainder Trust (CRT)
A CRT allows you to donate assets to an irrevocable trust that provides income to you or another beneficiary for a set number of years. After the trust term ends, the remaining assets are distributed to a charity of your choice. You may also receive an immediate tax deduction based on the present value of the charitable gift.
This strategy can be particularly effective for appreciated assets, such as stock or real estate, as it may help defer capital gains taxes, provide steady income, and reduce your taxable estate —all while supporting the causes you care about.
Next Steps
Thoughtfully incorporating these strategies into your financial plan can enhance your charitable giving while providing meaningful tax benefits. Your advisor can help determine which strategies best align with your goals, tax situation, and legacy wishes.
Disclosure: This content is for informational purposes only and not investment advice.
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