Giving Thanks Through Giving Back: A Thanksgiving Guide to Charitable Giving

Thanksgiving is often a time for reflection and gratitude—an opportunity to create cherished traditions and warm memories with family and friends, and to appreciate all the good things in our lives. For many, this season brings a sense of abundance, inspiring us to find meaningful ways to give back to our communities and make a positive impact.

Charitable giving can also provide an opportunity to be strategic, allowing us to maximize the impact of contributions while potentially taking advantage of tax benefits. Here are some intentional ways to give back this Thanksgiving, blending the spirit of gratitude with smart financial planning:

Gift Appreciated Assets

If you have stocks, mutual funds, or other investments that have significantly appreciated, consider donating those assets directly to a charity. Gifting appreciated assets can allow you to avoid capital gains taxes, while still providing a significant benefit to the organizations you care about. It’s a tax-efficient way to make a difference.

Set Up a Donor-Advised Fund (DAF)

A Donor-Advised Fund is an excellent vehicle for charitable giving, allowing you to make a contribution, receive an immediate tax deduction, and decide later which charities will benefit. Additionally, you can consider 'bunching' tax deductions by making several years' worth of charitable contributions at once to maximize tax benefits. Donating to a DAF allows you to maximize tax benefits in one year, while deciding over time which causes to support.

Make a Qualified Charitable Distribution (QCD)

For those who must take Required Minimum Distributions (RMDs) from retirement accounts, a Qualified Charitable Distribution (QCD) can be a great way to give back. A QCD allows you to donate up to $105,000 directly from your IRA to a qualified charity, which can count toward your RMD and help reduce your taxable income. This strategy can be an effective way to fulfill charitable intentions while gaining a tax benefit.

Establish a Tradition of Family Giving

Thanksgiving can be a chance to teach children about generosity. You might establish a "Family Thanksgiving Fund," where each member chooses a charity to support with a portion of the fund. This simple tradition encourages children to think about others, learn the value of giving, and support causes that matter to them.

Make Charitable Contributions Part of Your Year-End Planning

The end of the year is a critical time for tax planning, and charitable contributions can play an important role. Thanksgiving is a timely reminder to evaluate your financial situation and consider how charitable donations can help reduce your tax liability while benefiting causes you care about.

If you’d like to explore which of these charitable giving strategies might work best for you, feel free to reach out. We’re here to help you make the most of your generosity this holiday season.

This content is developed from sources believed to be providing accurate information as of the date of publication, and is intended for informational purposes only. No content should  be construed as legal or tax advice. Please consult your financial professionals for specific information regarding your individual situation. Past performance does not guarantee future results. All investing involves risk, including risk of loss.