The Season of Giving: Maximize Your Charitable Donation Tax Deductions This Thanksgiving Season

As we gather around the table this Thanksgiving, many of us reflect on what we're grateful for and look for ways to give back to our communities. November marks the beginning of the year-end giving season, when charitable donations surge as people embrace the spirit of generosity.

If you're planning to support your favorite causes this holiday season, understanding the tax rules around charitable giving can help you maximize both your impact and your tax benefits.

The Critical $250 Rule Every Donor Should Know

One of the most important thresholds in charitable giving is the $250 mark. If you make a single donation of $250 or more to a qualified charitable organization, the IRS requires you to obtain a written acknowledgment from that charity to claim the deduction on your tax return. A canceled check or credit card statement alone won't suffice.

This written acknowledgment must include:

• The name of the charitable organization

• The date and amount of your contribution

• A description of any non-cash contributions

• A statement indicating whether you received any goods or services in exchange for your donation

• If you did receive something in return, an estimate of its value

Pro tip: Request your receipt immediately after making the donation. Don't wait until tax season when organizations are overwhelmed with requests, and you're scrambling to gather documentation.

Why November Is the Perfect Time to Plan Your Giving

Thanksgiving kicks off what many nonprofits call "the giving season," and for good reason. Nearly one-third of annual charitable giving occurs in December, with a significant portion happening in the last three days of the year. However, November is actually the ideal time to plan your charitable strategy.

By starting now, you can:

• Assess your tax situation before year-end and determine how charitable giving fits into your overall tax planning

• Research organizations to ensure they're qualified 501(c)(3) charities eligible for tax-deductible donations

• Consider non-cash donations like appreciated stock, which can provide additional tax benefits

• Spread out your giving rather than rushing in the final weeks of December

• Ensure proper documentation by giving organizations time to process donations and provide receipts

Maximizing Your Charitable Donation Tax Deductions

As you consider your year-end giving, keep these strategies in mind:

Bunch your donations. If you're close to the standard deduction threshold, consider "bunching" two years' worth of donations into one year to exceed the standard deduction and itemize.

Donate appreciated assets. Contributing stocks or securities you've held for more than a year allows you to deduct the full market value while avoiding capital gains taxes.

Use a donor-advised fund. These funds let you make a charitable contribution, receive an immediate tax deduction, and then recommend grants to charities over time.

Leverage qualified charitable distributions. If you're 70½ or older, you can donate up to $105,000 directly from your IRA to charity in 2025, which counts toward your required minimum distribution without increasing your taxable income.

A Season of Gratitude and Generosity

This Thanksgiving, as we count our blessings, charitable giving offers a meaningful way to express gratitude and support causes that matter to us. The key is to plan strategically, keep meticulous records, and understand the rules that govern tax-deductible contributions.

Remember, the goal isn't just to reduce your tax bill, it's to make a real difference in your community while being smart about the financial aspects of your generosity. As you finalize your giving plans this November, don't hesitate to reach out for personalized guidance on how charitable contributions fit into your overall tax strategy.

After all, the best gift you can give yourself this season is the peace of mind that comes from knowing your generosity is both impactful and tax-smart.

Have questions about charitable giving or year-end tax planning? Contact Denise Stubbs, CPA, to discuss your specific situation and ensure you're maximizing the benefits of your generosity.

Call us: (828) 570-5760

Email us: info@denisestubbscpa.com

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This blog post is provided for educational purposes only and does not constitute personalized financial, tax, or investment advice. Tax laws are complex, change frequently, and vary based on individual circumstances. Before implementing any strategies discussed, please consult with qualified financial advisors, tax professionals, or CPAs who can assess your specific situation. This content should not be relied upon as a substitute for professional consultation.