As another tax season comes to a close, many individuals and families find themselves ready to move on—filing is finished, paperwork is put away, and attention shifts elsewhere.
But before closing the book entirely, there’s real value in taking a moment to reflect.
In fact, the period right after filing your return is one of the most useful times to evaluate your charitable giving. The decisions are still fresh, conversations with advisors are recent, and it’s easier to spot what worked well—and what you might approach differently next year.At the Gaston Community Foundation, we often hear a few common themes from donors looking back on their giving strategies. Here are three of the most frequent—and how a little planning can turn them into opportunities moving forward.
Rethinking How You Give
One of the most common realizations comes from how a gift was made. Many donors default to giving with cash or credit card, even when other assets might offer greater benefits. When appreciated assets—like stocks or mutual funds held for more than a year—are sold to generate cash for a donation, capital gains taxes can reduce the overall impact of that gift.
By contrast, donating those assets directly can be a more efficient approach. Not only can it potentially eliminate capital gains taxes on the appreciation, but it may also allow for a charitable deduction based on the asset’s full market value, depending on your tax situation. It’s a simple shift that can make a meaningful difference for both the donor and the causes they support.
Making the Most of Your Deduction
Another area that often comes into focus is the standard deduction. With today’s higher thresholds, many donors find that their annual charitable contributions—while generous—don’t always result in additional tax benefits.
That’s where a strategy often called “bunching” can come into play. By combining multiple years of charitable giving into a single year, donors may be able to exceed the standard deduction threshold and itemize, maximizing the tax benefit in that year. A donor-advised fund can make this approach especially flexible, allowing you to make a larger contribution at once while continuing to support your favorite nonprofits over time.
Not Missing Opportunities with IRA Giving
For those age 70½ and older, another commonly overlooked option is giving directly from an IRA. Qualified Charitable Distributions (QCDs) allow individuals to transfer funds from their IRA to a qualified charity, which can count toward required minimum distributions without increasing taxable income.
This can be a powerful way to give—particularly for those who don’t itemize deductions. It’s also an opportunity to think long-term. Some donors choose to direct these gifts toward endowments, helping create lasting support for the community that extends well beyond a single year.
Tax season may be behind us, but the insights it provides can shape more intentional and impactful giving in the years ahead. A bit of reflection now can lead to smarter decisions—and greater community impact—moving forward.
If you’re interested in exploring how these strategies might fit into your charitable goals, the Gaston Community Foundation is always here as a resource and partner. Contact Elizabeth Patton, epatton@cfgaston.org or 704-864-0927 with any questions.
