Any time of the year is a good time to give to the non-profits you care about most, but the end of the year often sees the highest influx of donations. Why? The holiday season is near, and people take a closer look at their tax strategy and goals. As you donate to charities this year, consider the following year-end giving tips and key dates to ensure your charitable contributions count for the 2024 tax year.
3 Year-End Charitable Giving Tips
Evaluate the Impact
How can you maximize the impact of your gifts? First, consider giving to a qualified charity with 501(c)(3) nonprofit status. Also, Charity Navigator, Charity Watch, and Give Well have websites that offer information to help you evaluate a charity and learn about how effectively it utilizes donations. If you are considering a large donation, it is often wise to ask the charity involved how it will use your gift.
If you’re still working, you may want to check with your employer. Some companies match charitable contributions made by their employees, an often-overlooked opportunity to give back.
Itemize Deductions to Optimize
To deduct charitable donations, you must itemize them on IRS Schedule A. So, you’ll need to log each donation you make. Ideally, the charity will provide you with a form to document proof of your contribution. If the charity does not have such a form available (and some do not), a receipt, a credit or debit card statement, a bank statement, or a canceled check can work. The IRS may want to know three things: the name of the charity, the gifted amount, and the date of your gift.1
Remember, itemized deductions may only have tax benefits when they exceed the standard income tax deduction, so be sure to check on the standard deduction amount for your tax filing year.
Donate Appreciated Assets
Many charities welcome non-cash donations. In fact, donating an appreciated asset can be a tax-savvy move. You may wish to explore a gift of highly appreciated securities. Selling securities can lead to a taxable event. As an alternative, you or a financial professional can write a letter of instruction to a bank or brokerage, which can facilitate authorizing a transfer of shares to a charity.
This transfer can accomplish three things:
- You can manage paying the tax you would normally pay upon selling the shares.
- You may be able to take a current-year tax deduction for the full fair market value of the shares.
- The charity gets the full value of the shares, not their after-tax net value. This can be a winning strategy all around.1
Whatever your situation, seeking guidance from a tax or financial professional can help you give wisely as the year comes to a close.
What Charitable Giving Considerations Should You Keep in Mind?
Whether you donate regularly or only a couple of times a year, use these four tips to help make your charitable giving more efficient.
- If you plan to donate stock or mutual funds to a non-profit organization, plan ahead. With the influx of donations at the end of the year, processing time can be delayed. Non-profits must receive gifts by December 31st to issue a tax receipt for that year.
- Open a donor-advised fund to expedite the year-end giving process. It is one of the easiest ways to give and is especially beneficial for donating appreciated non-cash assets like stocks, bonds, ETFs and more. Learn more about the tax-saving power of donor-advised funds in our blog.
- Make charitable giving fun! Consider opportunities like supporting a local family for the holidays or volunteering together with family and friends.
- Work with a professional. Our team is here to answer your questions as you navigate charitable giving tax strategies this season and beyond.
Key Dates for 2025 Charitable Contributions
Are tax deductions a key component of your charitable giving strategy? If so, be sure to plan your donations in advance. Here are some key dates to consider for 2024 giving. Please note this is just a general guide.
- Credit card, bank account, and PayPal donations must be received by 11:59 pm EST December 31, 2025. Credit card and PayPal donations are typically received shortly after submission, while donations via your bank account can take multiple business days to settle.
- Checks must be postmarked by December 31, 2025.
- Wires or bank transfers must be received by 11:59 pm EST on December 31, 2025.
- Stocks/securities must be received by 11:59 pm EST on December 31, 2025.
Donating to non-profit organizations can be a win-win for many individuals – you get to support causes you deeply care about and may also be able to claim tax deductions for your contributions through itemization. By keeping these tips and deadlines in mind, you can make the most of your charitable giving strategy.
Sources:
1. IRS.gov, 2025
https://www.givewell.org/about/donate/tax-deadlines
https://spmcf.org/blog/year-end-planned-giving-tips-for-professional-advisors
