Plan Your Year-End Giving Early
By Michael Sicuranza, CFP®,CPA, AEP®
A charitable gift often begins with a person, an experience, or a cause you care about. The paperwork comes later. If you hope to complete a gift before the end of the year, October is a useful time to bring the two together.
Starting early gives you room to decide what you can comfortably give, compare the assets you might use, and coordinate with the organization receiving the gift. It also leaves time to ask how the current tax rules apply to your situation. Giving in October does not automatically produce a larger deduction than giving in December. The benefit of planning now is having time to make an informed choice.
Begin with the purpose and the amount
Before choosing an account or filling out a transfer form, name the organizations you want to support and the amount that fits your finances. Consider upcoming spending, family commitments, and the cash you want to keep available. A gift should reflect your intentions without leaving another important need unfunded.
If giving is a family activity, invite a conversation before making the final selection. You may discover a shared interest, or a reason to divide your support among several causes. Agreeing on the purpose can make the administrative decisions easier.
Compare what you might give
Cash may be straightforward, but it is worth asking whether another asset belongs in the discussion. With appreciated publicly traded securities held more than one year, a direct gift to an eligible charity may avoid realizing a capital gain on a sale. Deductibility still depends on the asset, the recipient, applicable limits, and your circumstances. Selling first and donating the proceeds can produce a different tax result.
For an IRA owner age 70½ or older, a qualified charitable distribution (QCD) may be another possibility. A QCD moves directly from the IRA custodian to a qualifying charity, and it may count toward a required minimum distribution. The amount excluded from income cannot also be claimed as a charitable deduction. Donor-advised funds and private foundations cannot receive a QCD, and an annual limit applies, which is $111,000 per person for 2026.
These are options to compare with your advisors, not a reason to choose a gift solely for its tax treatment.
Use the rules for 2026
New rules take effect this year. If you itemize, only the portion of your charitable gifts above 0.5% of your adjusted gross income is deductible, and other limits can also apply. If you take the standard deduction, you may be able to deduct up to $1,000 of cash gifts, or $2,000 on a joint return, when the gifts go directly to qualifying charities. Gifts to donor-advised funds do not count toward that deduction. Ask your tax professional to apply the current rules to your planned gift rather than relying on last year’s result.
Work backward from completion
Contact the charity and the financial institution before starting a transfer. Ask what instructions they need, how they acknowledge receipt, and what processing cutoff applies to the asset you plan to give. A requested transfer and a completed gift are not always the same thing.
Write down the person responsible for each step. If a stock transfer requires the charity’s receiving information, get it before sending the instruction. If you are considering a QCD, talk through the payment process with the IRA custodian and your tax professional before taking a distribution yourself.
Keep the charity’s acknowledgment and the records your tax preparer will need. Documentation requirements vary with the type and amount of the gift.
Bring a short list to your next conversation
You do not need to arrive with the entire plan solved. Bring the causes you want to support, an approximate giving amount, and questions about the accounts or assets you might use. Your advisor and tax professional can help connect those intentions to the practical details.
If you work with us, or would like to, we can help fit charitable giving into your broader financial priorities.
Educational information only. Tax treatment depends on individual circumstances and current law. Consult your tax and legal professionals before acting.
Affinity Wealth Management is an independent wealth management firm in Wilmington, Delaware, serving families across Delaware and Pennsylvania since 1974. Financial planning, investment management, and tax strategy under one roof.