NEWS & RESOURCES

Authored by: Bradi Dahmen, Wealth Advisor

Giving Strategies Before Year-End

As October rolls in, pumpkins appear on porches, costumes fill the stores, and spooky season takes center stage. While Halloween is all about treats (and some tricks!), it’s also the perfect reminder that the end of the year isn’t far away. That means it’s time to start thinking about another end-of-year tradition: charitable giving.

Just like planning a costume or mapping out a trick-or-treat route, your charitable giving can be more impactful when you prepare ahead. With nearly 20 years in financial planning, I’ve seen how intentional giving benefits both communities and families. Here are a few strategies to consider before December 31:

1. Donate Appreciated Assets Skip the tax “trick” of capital gains by giving appreciated stocks, bonds, or mutual funds. You’ll support a cause you love and may qualify for a deduction on the full market value.
2. Use a Donor-Advised Fund (DAF)* Think of this as a giving “cauldron.” You can contribute now (and receive a deduction this year), then distribute gifts to charities over time.
3. Qualified Charitable Distributions (QCDs) For those age 70½ or older, giving directly from your IRA is a tax-friendly way to satisfy required minimum distributions while supporting nonprofits.
4. Bundle Contributions Sometimes giving is more effective in larger doses. By bundling multiple years of donations into one tax year, you may increase the likelihood of itemizing deductions.
5. Non-Cash Contributions Beyond money, consider donating vehicles, real estate, or other assets. These gifts can make a lasting difference, though they require extra planning.

The Bottom Line
Whether you’re giving from the heart, the balance sheet, or both, charitable contributions can be structured in ways that maximize their impact. As we near year-end, now is the time to coordinate with your financial team to ensure your giving aligns with both your values and your financial goals.

With a little forethought, your charitable contributions can make this season one of true treats for your community and your family’s financial wellbeing.

*Generally, a donor advised fund is a separately identified fund or account that is maintained and operated by a section 501(c)(3) organization, which is called a sponsoring organization. Each account is composed of contributions made by individual donors. Once the donor makes the contribution, the organization has legal control over it. However, the donor, or the donor’s representative, retains advisory privileges with respect to the distribution of funds and the investment of assets in the account. Donors take a tax deduction for all contributions at the time they are made, even though the money may not be dispersed to a charity until much later.