The holiday season is a time for generosity. Whether you’re supporting a local nonprofit, donating to a favorite charity, or passing down a tradition of giving, every contribution can make a difference.
With a little planning, you may also be able to make your charitable dollars go further. New tax rules taking effect in 2026 change how some donations affect your taxes, making it a good time to revisit your giving strategy.
At Anchor Wealth Management, we believe your financial plan should reflect what matters most to you. Here are a few ways to support the causes you care about while keeping your financial goals in mind.
- Understand Your Charitable Giving Options
Not every charitable gift receives the same tax treatment. Your options may depend on how you file your taxes, your income and the type of contribution you make.
For 2026, some taxpayers who take the standard deduction may qualify for a new deduction for cash gifts made directly to eligible public charities. Those who itemize may need to adjust their giving strategy to account for new deduction rules.
If you’re retired and have an IRA, you may also be able to donate directly from your account to an eligible charity through a qualified charitable distribution (QCD).
The takeaway? Before making your year-end gifts, talk with your financial advisor and CPA about which options make the most sense for your situation.
- Plan Your Giving Ahead of Time
It’s easy to make charitable donations as opportunities arise, especially during the holidays. But taking time to plan can help you give more intentionally.
Start by identifying the organizations and causes that matter most to you. Then consider how much you’d like to give and whether spreading contributions throughout the year or making a larger gift at once better fits your financial plan.
For some taxpayers, grouping several years of charitable contributions into one tax year may offer tax advantages. A donor-advised fund can make this approach easier by allowing you to contribute money or eligible assets now and recommend grants to charities over time.
Just remember that contributions to a donor-advised fund are irrevocable. Once donated, those assets can’t be returned for personal use.
- Consider Donating Investments Instead of Cash
Cash isn’t the only way to make a meaningful contribution. If you own investments that have increased in value, donating eligible appreciated stock may offer additional tax benefits.
You may be able to deduct the investment’s fair market value while avoiding capital gains tax on its appreciation. That could allow you to support a charity without selling the investment first.
The rules depend on the investment, how long you’ve owned it, and your tax situation. If you’re interested in this approach, talk with your financial advisor and CPA before making a transfer.
- Retirees: Look into Qualified Charitable Distributions
If you’re 70½ or older and have a traditional IRA, a qualified charitable distribution may be another way to support the causes you care about.
A QCD allows you to transfer money directly from your IRA to an eligible charity. The donation can count toward your required minimum distribution, and a qualifying gift is excluded from taxable income.
You don’t need to itemize deductions to benefit from this strategy, which can make it especially useful for retirees who give regularly.
There are specific rules to follow, including how the money is transferred and which organizations qualify. Your financial advisor can help you determine whether a QCD fits your retirement and charitable giving plans.
- Make Your Year-End Giving Checklist
Before December 31, take a few minutes to make sure your charitable plans are on track.
- Review your budget. Decide how much you can comfortably give without compromising other financial goals.
- Confirm your charities. Make sure the organizations you support qualify to receive tax-deductible contributions.
- Start early. Stock transfers and IRA requests may take time to process.
- Keep your records. Save receipts and written acknowledgments for your donations.
- Talk with your advisor and CPA. Review your giving strategy and understand any potential tax benefits before year-end.
A little preparation can help you avoid last-minute stress and make more informed decisions about your gifts.
Give With Purpose
Charitable giving should start with the causes that matter to you. Tax planning can help you decide how and when to give, but it shouldn’t dictate your generosity.
The holidays are also a great time to involve your family in conversations about giving. Share why certain organizations matter to you, explore causes together, and consider how generosity can become a tradition that lasts for generations.
At Anchor Wealth Management, we believe your financial plan should reflect your values, priorities, and the legacy you want to build. Charitable giving can be an important part of that picture.
If you’d like to explore how your giving strategy fits into your broader financial goals, connect with the Anchor Wealth Management team. Together, you can create a plan that supports both your financial future and the causes you care about.