Smart Year-End Charitable Giving: How to Give with Purpose and Tax Efficiency

December is the season of giving — and it’s also one of the best times to think about how generosity fits into your financial life. Whether you're still working or already retired, charitable giving can be meaningful, fulfilling, and tax-efficient when planned thoughtfully.

Before writing a check, take a moment to consider how you want giving to fit into your long-term plan. Do you want flexibility? A long-term legacy? A way to involve family?

Once intent is clear, the method matters.

Donating appreciated investments instead of cash can be a powerful strategy. When you give stock that has grown in value, you avoid capital gains taxes and may still receive a charitable deduction if you itemize. Many people find this is a way to give more — with fewer taxes.

Another option is a Donor-Advised Fund (DAF). This allows you to make a charitable gift now, receive the deduction in the current tax year, and spread the donations over time — even years. For busy professionals, this can simplify giving and create a structured rhythm. For retirees, it can support charitable goals while managing taxable income.

If you're already 70½ or older, you may also be eligible to make a Qualified Charitable Distribution (QCD) directly from an IRA. This type of giving doesn’t create a tax deduction — instead, it keeps the withdrawal from becoming taxable income, which can help with Medicare brackets and tax planning.

Charitable giving can be more than a tax strategy. It can reflect values, create connection, and support causes you care about. With a little planning, it can also create long-term financial benefits.

A thoughtful approach allows generosity and strategy to work together.

By James Blue, Fee-Only Advisor | Blue Advisors

James Blue is the founder of Blue Advisors, a fee-only financial planning and investment management firm based in Columbus, Ohio.

This content is provided for informational and educational purposes only and should not be construed as personalized investment, tax, or legal advice. The views expressed are those of the author as of the date published and are subject to change without notice. Blue Advisors is a fee-only registered investment advisory firm. Advisory services are offered only pursuant to a written advisory agreement and to clients in the State of Ohio, the Commonwealth of Pennsylvania, and other jurisdictions where Blue Advisors is properly registered or exempt from registration. Past performance is not indicative of future results. Readers should consult with their financial advisor, tax professional, or attorney before making financial decisions.