# Smart Tactics to Maximize Charitable Giving Before Year-End

Year-end planning offers a narrow window to boost donations while capturing available tax benefits. The strategy works because donations made before December 31 count toward your 2024 tax return, potentially lowering your taxable income and increasing your refund or reducing what you owe.

Here are four concrete approaches that deliver real savings.

**Donate Appreciated Securities Instead of Cash**

If you own stocks, mutual funds, or bonds that have gained value, donating them directly to charity beats writing a check. You avoid capital gains tax on the appreciation while still claiming a charitable deduction for the full market value. For example, if you bought 100 shares at $20 each ($2,000) and they're now worth $5,000, donating those shares means you sidestep taxes on the $3,000 gain. You get a $5,000 deduction. Your broker or financial advisor can facilitate a direct transfer to the charity's account within days.

**Bundle Deductions Using a Donor-Advised Fund**

A donor-advised fund (DAF) lets you deposit cash or securities, receive an immediate tax deduction, then recommend grants to charities over time. This tactic works especially well if your donations fluctuate year to year. In a high-income year, fund the DAF and deduct the entire amount. In lower-income years, skip direct donations and let the DAF manage giving. Providers like Fidelity Charitable, Schwab Charitable, and Vanguard Charitable offer DAFs with low minimums (often $5,000 to $25,000) and minimal fees.

**Leverage Your Required Minimum Distribution**

If you're 73 or older and taking Required Minimum Distributions (RMDs) from traditional IRAs, you can direct up to $100,000 per person per year straight to charity tax-free. The distribution counts toward your RMD but doesn't show up as taxable income. This approach works best if you don't itemize deductions anyway, since you get the charitable benefit without having to exceed the standard deduction ($14,600 for single filers, $29,200 for married filing jointly in 2024).

**Donate Your Tax Refund**

Planning ahead to the spring means directing any 2024 tax refund to charity during your tax filing. Some tax software and filing platforms like TurboTax and TaxAct let you allocate your refund to nonprofits directly. While this doesn't create an additional deduction, it stretches your charitable budget without touching cash you'd otherwise spend elsewhere.

**The Deadline Reality**

The clock runs out December 31. Checks must be postmarked by year-end, but electronic transfers (wire, ACH) process in real-time, so digital donations are safer bets in the final week. For appreciated securities, initiate the transfer immediately since settlement takes several business days.

None of these strategies replaces basic tax-filing competence. If your total deductions don't exceed the standard deduction, itemizing may not help. Consult a CPA or tax advisor before executing large donations, especially involving securities or RMD redirects. The tax code evolves, and your personal situation shapes which approach makes sense.