As the year winds down, many of us start thinking about giving back. But with a few smart moves before December 31, your generosity can go even further—creating greater community impact while giving you a tax advantage.
At the Community Foundation, we help donors give meaningfully and maximize every gift. And with several tax law changes taking effect in 2026, this is the year to plan ahead.
1. Bunch Your Gifts and Give with Intention
One of the most effective strategies is “bunching”—combining two or more years of charitable gifts into one tax year. Doing so may push your total giving above the standard deduction threshold, allowing you to itemize and claim a larger deduction.
You can then place the full gift in a Donor-Advised Fund (DAF) at the Community Foundation and recommend grants over time. This gives you immediate tax benefits and the flexibility to support nonprofits over time—whether next month, next year or beyond.
Example: You’re expecting a particularly high-income year — for example, due to a business sale, large bonus, or capital gains. Bunching allows for one tax record, maximizing a tax deduction, while maintaining consistent annual giving.
Tip from the experts: Planning by Thanksgiving or early December gives you time to transfer stock or open a DAF well before year-end and ensure your gift counts for 2025.
2. Use Appreciated Stock for Bigger Impact
Donating long-term appreciated stock or mutual funds is one of the most tax-efficient ways to give. By contributing these assets directly to the Community Foundation, you avoid capital gains tax and can deduct the full fair-market value.
It’s a simple way to realign your portfolio while increasing your giving power.
Example: A donor who typically gives cash but has holdings with high capital gains in their portfolio. Instead, the donor donates shares of the stock directly to the Community Foundation, avoids paying capital gains tax entirely, and could deduct the fair market value of the stock (if itemizing).
3. Consider a Qualified Charitable Distribution (QCD)
If you’re 70½ or older, you can give directly from your IRA through a Qualified Charitable Distribution. QCDs can count toward your Required Minimum Distribution (RMD), reduce taxable income, and create meaningful impact—up to $108,000 per person annually.
These gifts are especially powerful for those who no longer itemize but still want their giving to make a difference locally.
Example: A donor is at the age of a required minimum distribution, but does not want to take the money. So the donor asks their financial advisor to support charitable causes important to them instead. The RMD can be met and the amount is excluded from taxable income.
Tip from the experts: Use the Foundation as your giving hub, request one distribution from your IRA through QCD to the Community Foundation. Then work with the Foundation to direct where you want those funds to go. They can support any of the charitable funds at the Community Foundation and can be passed through to other charitable organizations as well. We can help you plan.
4. Don’t Wait—Timing Is Everything
To receive 2025 tax credit, all gifts must be completed by December 31.
- Stock gifts: Begin transfers by mid December to avoid year-end delays.
- QCDs: Submit requests to your IRA custodian as soon as possible to ensure processing.
- Checks or online gifts: Must be postmarked or completed online by midnight, December 31.
Let’s Plan Together
Whether you’re exploring a new giving strategy, establishing a DAF, or transferring appreciated stock, we’re here to help.
If need be, our team can coordinate with your financial or tax advisors to make sure your giving plan aligns with what you want to accomplish to maximize your impact this year—and for years to come.
Give smarter. Give boldly. Give before December 31.
Thank you for your year-end generosity today that will help strengthen our community for tomorrow.
The Community Foundation does not provide tax or legal advice. Donors should consult their professional advisors to ensure charitable plans are tax-smart and aligned with personal financial goals.