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Charitable giving is one of the most meaningful ways to align your financial plan with your values — but most people miss opportunities to give smarter. Simply writing a check is easy, but strategic givers focus on what they give, when they give it, and how it interacts with taxes.

When done intentionally, charitable planning can help preserve more of your wealth while increasing the dollars that reach the causes you care about.

Below are four commonly used strategies — each with a simple illustrative example.

1. Gifting Appreciated Securities

If you’re giving cash to charity while holding appreciated investments, you could be missing a tax-efficient alternative. When long-term appreciated securities (held more than one year) are donated directly to a qualified charity:

• A charitable deduction is generally available for the fair market value (subject to AGI limitations and itemization).
• Capital gains tax on the appreciation is typically avoided.
• The charity receives the full market value.

Illustrative Example

• You bought stock for $2,000. It is now worth $10,000.
• If sold, capital gains tax generally applies to the $8,000 gain.
• If donated directly, a $10,000 charitable deduction may be available (subject to limitations), the $8,000 gain is not recognized for tax purposes, and the charity receives $10,000.
• If you were already planning to give $10,000 in cash, that cash could be used to rebalance or repurchase investments in your portfolio. Cash flow stays similar, the charitable impact remains intact, and tax efficiency may improve.

2. Qualified Charitable Distributions (QCDs)

If you are age 70½ or older, a Qualified Charitable Distribution allows funds to move directly from your IRA to a qualified charity — avoiding inclusion in taxable income.

This is especially powerful once Required Minimum Distributions (RMDs) begin.

A Qualified Charitable Distribution:

• Satisfies RMD requirements.
• Is excluded from taxable income.
• Reduces adjusted gross income (AGI), which can influence Medicare premiums, Social Security taxation, and other income-based thresholds.

Illustrative Example

You have a $40,000 RMD and plan to give $10,000 to charity.

• $10,000 is sent directly from your IRA to charity as a QCD.
• $30,000 is included in taxable income.
• The $10,000 QCD is excluded from income.

For 2026, the QCD limit is $111,000 per person (indexed for inflation).

Key rule: Funds must transfer directly from the IRA custodian to a qualified charity.

3. Donor-Advised Funds & “Stacking” Deductions

With higher standard deduction levels, many households no longer itemize annually. That does not eliminate planning opportunities — it shifts the timing. A “stacking” strategy concentrates multiple years of charitable contributions into one tax year to potentially exceed the standard deduction threshold.

Illustrative Example

Instead of donating $10,000 per year for three years:

• Contribute $30,000 to a donor-advised fund in one year.
• Itemize deductions that year (if total deductions exceed the standard deduction).
• Take the standard deduction in the following years.
• Recommend $10,000 grants annually from the fund.

Your giving schedule remains consistent. Cash that would have been donated in future years could be used to rebalance or replenish investment accounts.

Important considerations:

• Contributions are irrevocable.
• Deduction limits depend on income and asset type.
• Investments in the fund fluctuate and are not guaranteed.

4. Charitable Remainder Trusts (CRTs)

CRTs are more advanced tools, typically used in higher-net-worth or concentrated asset situations.

A Charitable Remainder Trust:

Is an irrevocable trust that allows appreciated assets to be transferred and sold without immediate capital gains tax at the trust level. It can also:

• Provide an income stream to the donor or other beneficiaries.
• Generate a charitable deduction calculated under IRS rules.
• Transfer remaining assets to charity at the end of the trust term.

Illustrative Example

You own $1,000,000 of highly appreciated stock.

• The CRT sells the stock.
• You receive structured income payments.
• A partial charitable deduction may be available under IRS formulas.
• Remaining assets pass to charity at the end of the trust term.

CRTs require coordination with qualified legal and tax professionals.

Final Thoughts

Charitable giving works best when it’s coordinated with your broader financial plan — including income planning, RMDs, liquidity events, taxes, and long-term goals.

You don’t need to be a millionaire to benefit. Often, the biggest opportunities lie not in how much you give, but in how you give. Thoughtful planning can help you give more efficiently while keeping your financial goals on track.

Give smarter, keep more where it matters, and turn generosity into lasting impact.

If you would like to learn more about strategies to magnify your giving, click here to schedule a consultation.