Remember the December 31, 2025, Deadline

As the year draws to a close, we often reflect on what we've accomplished and how we can make a difference in the world. Charitable giving is one way to turn those thoughts into meaningful change—but there's a deadline to keep in mind. To ensure your charitable contributions are eligible for the 2025 tax year, they must be made by December 31, 2025. This applies whether you are donating via check, credit card, or making online contributions that must be date-stamped by December 31.

Explore the Tax Benefits of Charitable Giving

Generating goodwill through donations not only supports the causes you care about but also offers considerable tax benefits. If you itemize deductions, you may be able to deduct up to 60% of your adjusted gross income for cash donations. For those exploring non-cash contributions, consider donating household goods or appreciated stocks. This can allow you to avoid capital gains taxes while still claiming the full donation value. Additionally, individuals aged 70½ or older can utilize Qualified Charitable Distributions (QCDs) to give up to $100,000 from an IRA tax-free, which can help satisfy Required Minimum Distributions (RMDs) starting at age 73.

Practical Steps to Maximize Your Benefits

To make the most of your charitable giving, here are some practical steps to consider. First, confirm your chosen charity is IRS-qualified, which you can do using the IRS Tax Exempt Organization Search tool. Also, remember to document your contributions—gifts of $250 or more require written acknowledgment, while smaller gifts need a bank record or receipt. Often, donating appreciated assets may yield larger tax breaks than cash. Consider the timing of your donation, especially if this year has been financially rewarding. Additionally, think about employing a "bunching" strategy where you consolidate donations into one year to exceed the standard deduction, thereby maximizing the impact of itemizing your deductions. Turning intentions into reality can not only reduce your tax bill but also support impactful causes. With the December 31 deadline looming, there's still time to plan and act. Make use of your charitable contributions to save on taxes while making a meaningful difference. And if you're unsure about the donation amount or how it may reflect on your tax return, consult with a financial professional for personalized advice.