What are some effective donation strategies? As the holidays approach, the desire to give back becomes powerful. You’re thinking about gratitude and want to help the people who need it. But wanting to give doesn’t mean you know the best way to do so. You might be asking yourself questions like:

• Am I giving effectively?
• Am I missing any tax-smart strategies?
• Will my gift actually make a difference?

If you find yourself feeling that tug-of-war between wanting to give but not knowing how to do it, you aren’t alone. The good news is that there are several innovative, intentional, and effective donation strategies, regardless of your financial goals or income level.

Let’s calm the “What If Monster” together and explore how you can give back using both heart and strategy.

Knowing Why You’re Giving

Before you start exploring effective donation strategies, it’s essential to understand why you want to give. Ask yourself these questions:

• What matters to me?
• Do I want to provide consistently or on a one-time basis?
• Do I want to make an immediate impact or one that lasts beyond my lifetime?

Once you have clarity on your ‘why,’ you can figure out your ‘how’ without feeling overwhelmed.

Charitable Giving Strategies to Consider

There are many ways to give. Let’s discuss some strategies to consider.

Qualified Charitable Distributions (QCDs)

If you are 70 and a half years or older, a QCD allows you to donate straight from your IRA to a qualified charity. Here’s some important info on that:

• You can donate up to $100,000 annually.
• It can help reduce your overall tax liability while supporting a cause that’s important to you.
• The donation counts toward your Required Minimum Distribution (RMD) but isn’t included in taxable income.
• They are ideal if you don’t need your RMD to meet living expenses and want to avoid upping your tax bracket.

Donor-Advised Funds (DAFs)

Do you want to give now and decide later? Then a DAF could be the right choice for you.

• You give cash or appreciated assets (like stock) into a fund.
• You get an immediate tax deduction.
• Then, you decide what to support over time.

It can be a helpful strategy in years when you have a higher-than-normal income and want to offset it by giving a charitable deduction.

Gifting Appreciated Assets

Another option is to donate stock or other appreciated investments. This can be more tax-efficient than giving cash. You avoid paying capital gains taxes and get a charitable deduction for the full fair market value. It benefits both you and the charity, helping to keep more dollars working for good.

Bunching Donations

If you find that the standard deduction is higher than your itemized deductions, consider “bunching” multiple years of charitable giving into one tax year to maximize your deduction. You can do this in tandem with a DAF.

Legacy Giving

Do you want your generosity to live on? Here are some options:

• Naming a charity as a beneficiary of your IRA, 401(k), or life insurance.
• Including charitable gifts in your will or trust.

These can create long-term impact while offering potential estate tax benefits.

You Don’t Have to Navigate Giving Alone

Giving should feel rewarding, not confusing. At CrossleyShear, we help our clients align their charitable giving with their financial goals, values, and tax strategy. Whether you’re considering a QCD, exploring a Donor-Advised Fund, or just want to know your options, we’re here to help.

The Bottom Line for Effective Donation Strategies

You don’t need to be a millionaire to make an impact. When you implement the proper strategies, your generosity can go further, benefit causes you care about, and potentially reduce your tax bill.

Let’s calm the “What If Monster” today. Contact us to get started.

Every investor’s situation is unique and you should consider your investment goals, risk tolerance and time horizon before making any investment. Prior to making an investment decision, please consult with your financial advisor about your individual situation. The foregoing information has been obtained from sources considered to be reliable, but we do not guarantee that it is accurate or complete, it is not a statement of all available data necessary for making an investment decision, and it does not constitute a recommendation. Any opinions are those of Dale Crossley and Evan Shear and not necessarily those of Raymond James.