Tax-smart charitable giving

Charitable giving is one of the only tax deductions that directly reflects your values. It's also one of the most misunderstood — most people give cash, which works but leaves real tax savings on the table. For donors who itemize, there are a handful of techniques that make every dollar of giving stretch further.

Donate appreciated stock instead of cash

If you own an investment that's appreciated, donating the shares directly to charity is almost always better than selling and donating the cash. You avoid capital gains tax on the appreciation AND deduct the full market value. The charity sells the shares tax-free. Everyone wins except the IRS. This alone can make your giving 15–25% more efficient.

Bunch donations every other year

The standard deduction is high enough (~$30k married filing jointly) that many donors don't itemize in any given year. Bunching means giving two years' worth of donations in a single tax year — letting you itemize that year — then giving nothing the next year and taking the standard deduction. A donor-advised fund makes this painless (you fund it in the bunch year, grant to charities over time).

Qualified Charitable Distribution (QCD) for retirees

If you're 70½ or older, you can direct up to $108,000 (2025) per year from a Traditional IRA directly to charity. It counts toward your Required Minimum Distribution (RMD) but isn't taxable income. For retirees who don't need their full RMD and want to donate, this is among the most tax-efficient giving moves available.