Giving Thanks and Giving Well: A Year-End Guide to Charitable Giving Beyond QCDs

Thanksgiving is a natural moment to think about charitable giving, and year-end tax planning arrives at the same time. If you are younger than 70½, do not have an IRA, or would rather give in a different way, several other approaches are available before December 31.

Each strategy below works differently, and each fits a different situation. Here is how a donor-advised fund, a gift of appreciated stock, and bunching donations into a single year function, so you can see which one, if any, matches your own giving plans.

Donor-Advised Funds

A donor-advised fund lets you make a charitable contribution now, take the tax deduction in the year you contribute if you itemize, and decide which charities receive grants from the fund over time, on whatever schedule you choose. Once the money is in the fund, it belongs to the sponsoring organization, and you keep advisory privileges over how it is eventually distributed.

This separates the timing of the tax deduction from the timing of the gift to charity, which can be useful in a year with unusually high income because the deduction lands in that year while the giving spreads across future years.

Giving Appreciated Stock Instead of Cash

Donating stock or other securities that have gained value, and that you’ve held for more than a year, can avoid the capital gains tax you’d owe if you sold the shares first and donated the cash. If you itemize, the deduction is generally based on the stock’s current fair market value rather than what you originally paid for it.

This approach can be most useful for stock that has appreciated significantly since purchase, because the avoided capital gains tax is largest there. Before starting the transfer, confirm with the charity that it accepts stock donations directly.

Bunching Donations into a Single Year

Bunching means combining several years of planned giving into a single tax year so you can itemize that year and take the standard deduction in the years in between. Charitable deduction rules changed beginning in 2026, so check with your CPA how they apply to your situation.

A donor-advised fund can pair with this strategy. The bunched contribution goes into the fund in one year, generating the itemized deduction for that year, while the grants to charities continue on whatever annual schedule you choose.

Where a Qualified Charitable Distribution Fits In

Another path for IRA owners who are 70½ or older is a qualified charitable distribution, which differs from the three approaches above. It moves money from an IRA to a charity rather than from a brokerage or bank account, and it can count toward a required minimum distribution. We cover how that strategy works, including the age and account rules, in a separate piece on the blog.

Which of these fits your household depends on your income for the year, whether you hold appreciated stock, whether you itemize deductions at all, and how you’d like to structure your giving over time. If you’d like to talk through your options before year end, schedule a call with our team.

This content is for informational purposes only and is not individualized advice. Tax outcomes depend on an individual’s circumstances. MPM does not provide tax or legal advice. Consult your tax professional before implementing any strategy.