Spotlight on Giving

Your Meaningful Gift,
Your Tax Savings

When we help others, we feel good. Our brains actually release endorphins! But the benefits of charitable giving can go even further. If you are motivated to make a difference, consider ways to give this year and reduce your tax bill next April. You may find gifts and strategies that provide tax and planning benefits that can enhance your overall financial picture.

Qualify for a charitable income tax deduction

If you itemize your taxes, you can make use of a charitable income tax deduction. The following gifts are among the most common types that provide a deduction:

• Cash or securities
• Real estate
• Tangible personal property
• A charitable gift annuity

If you have been making use of the high standard deduction instead of itemizing, you may want to consider “bunching” your donations. This means making two or more years’ worth of charitable gifts in one year to make itemizing worthwhile. Your advisors can help you determine if this is a good approach for you.

Bypass the capital gains tax

A gift of appreciated stock or real estate held for longer than one year provides a tax deduction, but it comes with an extra benefit—no capital gains tax is due on the appreciation. This is a powerful tax advantage! If you are rebalancing your portfolio and planning to sell appreciated stocks, first consider whether that stock, donated directly to us, could be a smart way to meet your charitable goals. 

Avoid taking a taxable required minimum distribution from your IRA

If you are an IRA owner age 70½ or older, you may want to give directly from your IRA using a qualified charitable distribution. While the gift does not qualify for an income tax deduction, you will owe no tax on the distribution (up to $108,000 in 2025) and it counts toward your RMD if one is due.