Giving to charity feels good.

But the way you give can make a big difference, for both the causes you support and your own financial picture.

With the right approach, you can reduce taxes, stretch your dollars further, and increase the impact of your generosity.

In today's email, I’m sharing three strategies that can help you give more effectively while keeping your retirement plan on track.

To help you navigate the charitable giving strategies, grab these two (free) guides:

• ​Summary of Deductible Charitable Gifts (PDF)​
• ​Charitable Giving Vehicles for 2025 (PDF)​

Before we dive in, did you catch this week's podcast? 👇

RMDs Unpacked: The Math Behind Your Required Distributions Do RMDs really put you at risk of outliving your money? Why does the IRS expect you to live so much longer than the Social Security Administration does? And what tax planning steps can you take now? 🎙️ Listen now on ​Apple​, ​Spotify​, or ​YouTube​.

3 Tax-Smart Ways to Give to Charity

1. Donate Appreciated Investments (Instead of Cash)

If you own investments in a taxable account that have grown in value and you’ve held them for more than a year, consider donating those shares directly to charity.

Why this strategy works so well:

• No capital gains tax: You avoid paying tax on the appreciation.
• Bigger deduction: You still receive a full deduction for the fair market value.
• Maximum impact: The charity receives the entire value, tax-free.

And if a charity can’t accept appreciated securities directly, a Donor-Advised Fund (DAF) is a great solution.

A DAF allows you to contribute investments (or cash if desired), take the deduction in the current year, and then recommend grants to your charities on your own timeline.

Meanwhile, any funds left inside the DAF can be invested and continue growing tax-free until you are ready to make a donation.

2. “Bunch” Multiple Years of Giving

Because the standard deduction is much higher today, fewer people itemize, and many miss out on the tax benefits of their giving.

A smart workaround is “bunching” several years of charitable donations into a single tax year.

By doing so, your deductions can exceed the standard threshold, allowing you to itemize and capture bigger tax savings.

Often, this is done by contributing to a Donor-Advised Fund (DAF): you get the full deduction upfront, but can spread out grants to charities over time.

Bunching is especially powerful in high-income years (like after a business sale, bonus, or stock option exercise) when deductions offset income taxed at the highest rates.

3. Use Your IRA for Tax-Free Giving (QCDs)

If you’re age 70½ or older, you can donate directly from your IRA to charity using a Qualified Charitable Distribution (QCD).

Here’s why it’s so effective:

• Donate up to $108,000 per year (in 2025): Transferred directly from your IRA, tax-free.
• No income impact: The donation never hits your taxable income.
• Counts toward RMDs: If you’re 73 or older, QCDs can satisfy Required Minimum Distributions.

That last point is key. By using QCDs to meet your RMD, you avoid extra taxable income that could otherwise push you into a higher bracket.

In short, QCDs let you give generously, reduce your tax bill, and meet IRS requirements all at once.

Bottom Line

Smart giving isn’t just about supporting causes you care about—it’s also about using the right strategy.

Donating appreciated investments, bunching multiple years of gifts, or making QCDs from your IRA can all help you give more effectively while reducing your tax bill.

The best option will depend on your income, assets, and stage of retirement.

Taking the time to match the strategy to your situation can maximize both your charitable impact and your financial benefit.

📚 What I've Been Reading

• How Likely Will Investors Outlive Their Savings? (Math Investor)
• Americans May Live Longer Than the Social Security Trustees Expect (Center for Retirement Research)
• How Stocks Really Work (Fortunes & Frictions)
• 4 Ways to Retire Abroad (AARP)
• Is Housing In a Recession (Spilled Coffee)
• Why Smart People Doubt Their Own Abilities (Ness Labs)

Thank you for reading!

Please reply to this email with comments, questions, and/or feedback.

Stay wealthy,

Taylor Schulte, CFP®