Tax-smart strategies for year-end giving

September 29, 2025

By Megan Pierce, Donor Services Director

Charitable giving always starts with a generous heart. As the year winds down, many people consider where they want their generosity to make a difference. If you’re among them, there are tax-smart strategies that can help your gifts go further — for the causes you value and for your financial goals.

Why October is the right time to act

Too often, people wait until the last week of December to make giving decisions. By then, advisors and nonprofits are swamped, and it’s harder to be thoughtful. Starting in October gives you time to review your full financial picture, consider tax implications, and ensure your gifts benefit you financially while reflecting your values and goals.

Giving appreciated assets

Donating stocks, bonds, or mutual funds you’ve held for more than a year can be a very tax-efficient way to give. You avoid paying capital gains tax, and you may still deduct the full market value of the asset — up to certain IRS limits. For many donors, this means they can give more than they could with cash alone.

Making the most of your deduction

With today’s higher standard deduction — $15,750 for single filers and $31,500 for couples in 2025 — some families don’t see much tax benefit from their charitable gifts each year. A strategy called “bunching” can help. By combining two or more years of giving into one tax year, you can exceed the deduction threshold and itemize.

A donor-advised fund is a great tool here: you can claim the deduction now and then make grants to your favorite nonprofits over time. (Just remember that IRA charitable distributions can’t go into a donor-advised fund.)

Using your IRA for good

If you’re age 70½ or older, you can give directly from your IRA to charity through what’s called a qualified charitable distribution, or QCD. For 2025, you can direct up to $108,000 this way. A QCD can count toward your required minimum distribution, but it won’t show up in your taxable income. That can help lower your adjusted gross income, which affects Medicare premiums and Social Security taxation.

Work with your advisors

Everyone’s situation is different. Your tax bracket, the types of assets you own, and your long-term goals all factor in. That’s why it’s important to consult with your financial advisor, accountant, or estate planning attorney as you make year-end giving plans.

How we can help

At La Crosse Area Community Foundation, we’re here to support your generosity. Whether you’re considering opening a donor-advised fund, making a gift to an area you’re passionate about, or planning a future gift through your estate, we can guide you through the options.