Giving Thanks and Giving Smart: How to Make Charitable Gifts That Also Save on Taxes

As the season of gratitude approaches, many of us look for ways to give back to the causes we care about. At Lucrum Legal Accounting, we know that charitable giving is not just about generosity—it can also be part of a smart tax strategy. With a little planning, you can support the organizations you love while also reducing your tax bill.

The Power of Charitable Giving

Donations to qualified charities can lower your taxable income, reduce your overall tax liability, and in some cases, even help you avoid higher tax brackets. But not all gifts are created equal. How you give, when you give, and what you give can make a significant difference in the tax benefits you receive.

Smart Ways to Give

Here are a few strategies to make your giving go further:

1. Donate Appreciated Assets

Instead of writing a check, consider donating stocks, mutual funds, or other appreciated assets you’ve held for more than a year. You avoid paying capital gains tax and still get a charitable deduction for the fair market value.

2. Bunch Your Donations

With the higher standard deduction, some taxpayers no longer itemize every year. By “bunching” several years’ worth of charitable contributions into one tax year, you may surpass the threshold and maximize your deductions.

3. Qualified Charitable Distributions (QCDs)

If you’re over age 70½, you can make donations directly from your IRA. These distributions count toward your Required Minimum Distribution (RMD) but are not included in your taxable income.

4. Donor-Advised Funds (DAFs)

DAFs allow you to make a charitable contribution, receive an immediate tax deduction, and then recommend grants to charities over time. It’s a flexible way to plan your giving for both now and the future.

5. Cash vs. Non-Cash Gifts

Both cash and non-cash gifts can provide tax benefits, but non-cash contributions (such as property or securities) often unlock additional savings. Just make sure you document the fair market value and obtain receipts.

Timing Is Key

Charitable contributions must be made by December 31 to qualify for the current tax year. Planning ahead ensures your generosity works double-time—supporting good causes while reducing your tax bill.

The Lucrum Difference

At Lucrum Legal Accounting, we believe in stabilizing cash, positioning tax, and growing wealth—and that applies to your personal finances as much as your business. Our team helps attorneys and entrepreneurs create charitable giving strategies that align with both their values and financial goals.

This holiday season, give thanks, give generously—and give smart.