As the year winds down, many people feel inspired to give back and support the causes that matter most to them. If you are hoping to make a meaningful impact while also taking advantage of potential tax benefits, there is still time—just be mindful of the fast-approaching December 31, 2025, deadline.
Know the December 31 Deadline
To qualify for the 2025 tax year, donations must be completed by December 31, 2025. This includes checks mailed by December 31, credit card gifts (even if the payment posts later), and online contributions as long as they are date-stamped by the deadline.
Understand the Tax Benefits of Giving
If you itemize deductions, you may be able to deduct up to 60% of your adjusted gross income for qualifying cash donations. You can also give non-cash assets—such as household goods or appreciated stocks—to avoid capital gains taxes while still deducting the full value. For individuals aged 70½ or older, Qualified Charitable Distributions (QCDs) allow you to donate up to $108,000 from an IRA tax-free. A QCD can also help satisfy required minimum distributions starting at age 73.
Take Practical Steps to Maximize Your Gift
Before donating, confirm that the organization is IRS‑qualified by using the IRS Tax Exempt Organization Search tool. Keep proper documentation: gifts of $250 or more require written acknowledgment, and smaller donations need a bank record or receipt. Donating appreciated assets instead of cash may offer greater tax advantages. Timing also matters—if your income is higher this year, making your contribution now could reduce your overall tax burden. You may also consider a “bunching” strategy by combining multiple years of donations into one to exceed the standard deduction and benefit from itemizing.
There is still time to give thoughtfully and make a meaningful impact before the year ends. Year‑end charitable giving not only supports the causes you care about but may also provide valuable tax savings. If you are unsure how much to contribute or how your donations may affect your tax return, consider speaking with a financial professional.
