Effective Ways to Give
02/02/2026
Giving is one of the most meaningful financial decisions we make, and it’s important to consider not only how much to give, but how to give. With some planning, charitable gifts can have a greater impact for the organizations you care about while also creating tax efficiencies for you. Below are several effective ways to give worth considering.
1. Cash Gifts
Cash is still the most straightforward way to give. Writing a check, donating online, or giving directly to an organization provides immediate support and flexibility for the charity.
Tax benefit: Beginning in 2026, the first $1,000 in charitable donations ($2,000 for married couples filing jointly) may be deductible even when using the standard deduction. Beyond that, cash gifts to qualified charities are generally deductible if you itemize.
Annual gift tax exclusion: You can give up to the annual exclusion amount per person without filing a gift tax return.
Above the limit: If you give more than the annual exclusion to an individual, you’ll need to file a gift tax form (Form 709), though this usually does not mean you owe gift tax; it simply tracks lifetime exclusions.
2. Donor Advised Funds (DAFs)
Donor Advised Funds are one of the most flexible and tax-efficient tools for charitable giving.
You contribute cash or appreciated assets to a DAF.
You receive a tax deduction in the year the funds are gifted.
You can recommend grants from the DAF to charities at any time, now or years in the future.
DAFs are especially helpful in high-income years, after a business sale, or when “bunching” multiple years of giving into a single tax year.
3. Donating Appreciated Assets
Giving appreciated investments such as stocks or mutual funds held longer than one year can be extremely tax-efficient.
You avoid paying capital gains tax.
The charity receives the full market value.
You may deduct the full fair market value if you itemize.
This strategy is often more efficient than selling the asset and donating cash.
4. Qualified Charitable Distributions (QCDs)
For individuals age 73-75 or older (depending on birth year), QCDs allow you to donate directly from an IRA to a qualified charity.
Up to $111,000 per year (2026).
Counts toward required minimum distributions (RMDs).
Not included in taxable income.
This can be a powerful way to give while reducing taxable income in retirement.
5. Gifting Through Your Estate Plan
Charitable giving doesn’t have to happen during your lifetime:
Name charities as beneficiaries of retirement accounts.
Include charitable bequests in your will or trust.
Charitable giving is most effective when it’s aligned with both your values and your overall financial plan. If you’d like help thinking through the most efficient ways to give, whether now or as part of your long-term plan, let’s have a conversation to bring confidence to your decisions.
*Do not use this as advice about your specific situation. Please contact me to talk about your specific situation. You are never charged for meetings or advice.