Reminder: Charitable Giving Deadline Approaches

As the year winds down, many of us are inspired to support the causes we care about while also considering tax benefits. The clock is ticking with a December 31, 2025 deadline fast approaching for charitable contributions to count towards your 2025 tax deductions.

Emphasize the December 31, 2025 Deadline

Remember, donations must be made by December 31 to qualify for this tax year. This includes checks (mailed by December 31), credit card donations (processed by year-end), and online contributions (date-stamped by December 31).

Discuss the Tax Benefits of Charitable Giving

If you itemize deductions, you may be able to deduct up to 60% of your adjusted gross income for cash donations. Donating appreciated stocks or household goods can help avoid capital gains taxes while still claiming the full value. Additionally, individuals 70½ or older can use Qualified Charitable Distributions (QCDs) to donate up to $108,000 from an IRA tax-free, which can satisfy RMDs starting at age 73.

Offer Practical Steps to Maximize Benefits

Ensure your charity is IRS-qualified by checking the IRS Tax Exempt Organization Search tool. Documentation is crucial: obtain a written acknowledgment for gifts $250 or more; keep a bank record or receipt for smaller gifts. Consider donating appreciated assets instead of cash for potentially bigger tax breaks. Timing matters—if your income is high this year, giving could be particularly advantageous. Consider “bunching” donations into one year to exceed the standard deduction and leverage itemizing.

Year-end giving offers a chance for personal tax savings and making a significant difference. Don’t worry, there’s still time to make an impact! If you're uncertain about giving amounts or tax implications, consulting a financial professional can provide clarity.