Three Ways to Make the Most of Your Year-End Giving
Understanding how to maximize your charitable donations can help you stay on budget and help the causes you are passionate about.


The season of giving is here, and it can go beyond just gifts. This is the perfect time to give back and consider a charitable donation.
But, with many Americans struggling with their finances in the midst of lingering inflation, how can we stay on budget and still give back? After two record-setting years, charitable giving decreased in 2022, so nonprofits need help now more than ever.
Before you give to charity, find a cause that is important to you. You shouldn't donate simply because you want a tax write-off. Instead, find a charity that means something to you or your loved ones. Whether it’s a local animal shelter or the American Red Cross, there are many organizations that could use your help.
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.

Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
There are a number of ways to give, some of which can be more effective than others. By understanding how to maximize your charitable donations, you can make the most out of your gifts while staying on budget and helping the causes you are passionate about.
1. Take advantage of tax benefits
If you have a good strategy for your donations, you can save more on your taxes, which will give you the ability to donate even more to charity. To encourage charitable giving, the IRS offers many tax deductions for donations made throughout the year. However, to claim these deductions you need to have the right paperwork and have it filed correctly.
If you are seeking a tax deduction, you need to make sure your donation falls under the IRS’s definition of a charitable donation. You can donate to organizations that are registered as tax-exempt, including places like churches and religious operations or museums and educational organizations. Be careful. Not all nonprofits are tax-exempt, so make sure you do your homework before you choose.
Different regulations apply to different types of donations, including money or other assets. For example, if you donate clothes to a local Goodwill, you can deduct only the value that Goodwill can get from selling those items. You cannot deduct what you originally paid for them.
In most cases, you can donate up to 50% of your adjusted gross income, but 20% or 30% limitations may apply in different scenarios.
2. Bunch your contributions
Once you choose your charity, decide how often you are going to donate. While you may want to donate every holiday season, it might make more sense financially to give twice as much every other year. This strategy is commonly referred to as “bunching.” Rather than making yearly donations, combine two or more years of contributions into one tax year to increase your itemized deductions for that year so you can surpass the itemization threshold. Then, on your off years, take the standard deduction.
If you use the bunching strategy and want the tax benefit of itemizing, the amount you donate, along with your other tax deductions, must be greater than the standard deduction for 2023, which is $13,850 for single people and $27,700 for married couples. With this higher standard deduction, I recommend everyone consider bunching donations to take advantage of itemizing.
3. Use qualified charitable distributions
If you turned 73 this year, you have until next April to begin taking your required minimum distribution (RMDs). A way to meet your annual RMD is by using a qualified charitable distribution (QCD). This allows those age 70 ½ and older to make donations of up to $100,000 from their IRA. When you make a distribution from your IRA, those are pre-taxed dollars and can be used to meet your annual RMD. This will reduce your adjusted gross income and can go directly to charity without being taxed when you withdraw.
If you don’t have it in your budget to donate this year, that’s OK! There are still other ways you can give back, like volunteering at your favorite organization. If you are worried about how your donation could affect your finances, I recommend working with a financial professional. They can help you determine the best ways to maximize your donation while still staying within your budget.
Drake & Associates is an independent investment advisory firm registered with the U.S. Securities & Exchange Commission. This is prepared for informational purposes only. It does not address specific investment objectives, or the financial situation and the particular needs of any person who may view this report. Neither the information nor any opinion expressed it so be construed as solicitation to buy or sell a security of personalized investment, tax, or legal advice. The information cited is believed to be from reliable sources, Drake & Associates assumes no obligation to update this information, or to advise on further development relating to it. Past performance is not indicative of future results.
Related Content
- 'Tis the Season for Charitable Giving's Many Benefits
- Six Charitable Giving Strategies: Feel Good and Cut Your Taxes
- Give Your Charitable Giving a Boost With These Strategies
- Tips on How and When to Donate During a Humanitarian Crisis
- What to Do if Your Passion for Charitable Giving Has Flagged
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

Tony Drake is a CERTIFIED FINANCIAL PLANNER™ and the founder and CEO of Drake & Associates in Waukesha, Wis. Tony is an Investment Adviser Representative and has helped clients prepare for retirement for more than a decade. He hosts The Retirement Ready Radio Show on WTMJ Radio each week and is featured regularly on TV stations in Milwaukee. Tony is passionate about building strong relationships with his clients so he can help them build a strong plan for their retirement.
-
4 Career Moves to Make Now if You're Worried About a Recession
Worried about a recession? These steps to protect your job prospects will help you professionally whether a downturn develops or not.
-
How StoryCorps Works and How You Can Tell Your Story
StoryCorps has recorded conversations between thousands of people, and anyone can participate. National facilitator Alan Jinich explains how to share your story.
-
I'm a Retirement Psychologist: Here's Why Doing What You 'Ought' in Retirement Beats Doing Whatever You Want
True retirement freedom isn't about simply doing whatever you want, but about finding purpose and direction through commitments that align with your deepest values and allow you to contribute meaningfully.
-
Tactical Roth Conversions: Why 2025-2028 Is a Critical Window for Retirees
The One Big Beautiful Bill (OBBB) extended today's low tax brackets, but they may not last. Here's how smart planning now can prevent costly tax surprises later.
-
Ready to Retire? It's Not Too Late to Convert to a Roth IRA
Millions of Americans are turning 65 this year. If you're retiring soon, don't dismiss the idea of a Roth conversion — it could still be a smart move even now.
-
I'm a Financial Adviser: Three Things You Will Wish You Did Before the Fed Cuts Interest Rates
With potential interest rate cuts on the horizon, you might want to lock in today's higher yields and consider adjusting your asset allocation.
-
Simple Ways to Save on Back-to-School Shopping This Year
Set a budget and stick to it, scour the house for what you already have, decorate backpacks and lunch boxes with your kids and consider buying some items during holiday sales.
-
The Seven-Day Financial Reset: A Simple Plan to Get Control of Your Money, From an Expert
Sometimes, getting unstuck requires a reset. These practical steps can help you tackle your money issues and feel less overwhelmed by it all.
-
Three Pros (and Four Cons) of Hiring Multiple Financial Advisers: The View From a Financial Adviser
There's nothing to stop you from working with several financial advisers instead of just one. But take a balanced view of the risks and rewards first.
-
Here's Why Munis Aren't Just for Wealthy Investors Now
Buyers of all levels should be intrigued by municipal bonds' steep yield curve, strong credit fundamentals and yield levels offering an income buffer.