Since 1977, Austin Community Foundation (ACF) has helped donors make the most of their generosity. As the year comes to a close, you may be thinking about how to maximize the impact of your charitable giving while taking advantage of available tax benefits. These eight tips from can help you make informed, tax-smart decisions and make your year-end giving count:
1. Open a donor-advised fund (DAF).
A DAF can be a smart year-end giving strategy, allowing you to receive a potential tax deduction when you contribute to the fund while deciding which nonprofits to support over time. You can recommend grants to the causes you care about throughout the year or over several years. Opening a DAF with ACF is easy, and you can contribute a variety of assets, including complex gifts. Learn more about donor-advised funds at ACF.
2. Donate appreciated stock.
If you own stocks or other publicly traded securities that have increased in value, donating them directly to your DAF at ACF may help you avoid capital gains taxes while supporting the causes you care about. Year-end transfers can take time to process, so start early to ensure your gift is received by December 31. For help with a stock gift, contact our team or view transfer instructions here.
“For a long time, I preferred writing checks when making charitable gifts. But our financial advisor suggested we give stock to our DAF directly instead. He explained that we could get the full benefit of the gift by transferring the stock rather than selling it first.
Once we understood how much of a difference that could make, we thought, ‘Wow, we should have been doing this from the beginning!’” – Cano Family Fund
3. Consider bunching your charitable gifts.
If you typically give to your favorite nonprofits each year, bunching may help you maximize your charitable tax benefits. Instead of making similar-sized gifts every year, you can combine several years of charitable contributions into a single tax year to potentially exceed the standard deduction and itemize. You can then take the standard deduction in other years.
A donor-advised fund at ACF can make this strategy easier. Contribute a larger amount in one year, then recommend grants to the nonprofits you care about over time.
4. Give directly from your IRA.
If you’re 70½ or older, you may be able to support your favorite charities directly from your IRA through a qualified charitable distribution (QCD). This can be a tax-smart way to give, and your gift may count toward your required minimum distribution.
While QCDs can’t be contributed to a donor-advised fund, there may be other ways to incorporate charitable giving into your year-end plans. More about this strategy here.
5. Revisit your long-term giving plans.
As you make year-end charitable gifts, take a moment to consider how you want your generosity to make a difference in the future. Reviewing your estate plans and beneficiary designations can help ensure your charitable intentions are reflected in your plans. Contact Arthur Brewer, ACF’s senior gift planning officer, at abrewer@austincf.org to start the conversation.
6. Make more possible with a gift to ACF.
Your gift to Austin Community Foundation helps make more possible across Central Texas by supporting solutions that meet our region’s evolving needs. With deep community knowledge and trusted relationships, ACF connects generosity with the people and organizations working to create opportunity and lasting change. Your gift ensures that our community has the resources to meet immediate needs and build a stronger future.
7. Start a family tradition of giving.
The end of the year is a great opportunity to talk with your family about the causes you care about and the difference you want to make in your community. Share what inspires your generosity, explore local nonprofits together, and invite younger family members to help decide where to give. Read our tips for family philanthropy.
8. Utilize ACF’s expertise for your philanthropy.
Your giving can make an even greater difference with the right local knowledge and resources. ACF helps you connect your charitable goals with the people, organizations, and solutions making a difference across Central Texas. Whether you’re planning a year-end gift or thinking about your long-term giving, we’re here to help you explore your options. Connect with our team to get started by emailing heretohelp@austincf.org.
We’re proud to be your trusted partner in philanthropy. Thank you for looking to ACF to make your charitable giving easy, personal, and meaningful.
Rebekah Anthony is Senior Director of Donor Engagement at Austin Community Foundation. If you have any questions, please reach out to our team at heretohelp@austincf.org.
