Tips for Smart Year-End Giving that Benefit You and Your Community

For many, the end of the year represents a time of reflection and gratitude, and an opportunity to give back. But it’s also the most strategic time for donors to make charitable contributions that not only do good in the community but also make financial sense. 

“Donating at the end of the year has been ingrained in us because it’s the ‘charitable season,’ so to speak,” says Nick Grimmer, chief development officer at the Community Foundation of Herkimer & Oneida Counties. “In the season of gratitude and giving, it feels good to give back, but beyond that, it’s also an important time for donors looking to structure their giving in a tax efficient way. There are ways that they can plan for those big income years and balance out some of the tax exposure through their charitable giving.”

He emphasizes that charitable intentions and tax strategy are both valid and often intertwined: “Those deductions are in place for good reason; they are an incentive to be generous, so we should all take advantage of those tax benefits while they’re available.”

Why year-end giving is strategic 

Making donations at any point throughout the year matters, however, the final weeks of the year are when community needs—and generosity—tend to peak.  

“It's a time where most people in need are reaching out for the extra support. We work with many nonprofit organizations and bring their needs to our donors at year end—being charitable feels good all year long, especially during the holiday season.” Grimmer explains.

But planning matters, too. “If a business owner had a very successful year, they may see themselves having more exposure to state and federal taxes. There are ways that they can accelerate their charitable giving during those big income years and balance out some of the tax exposure.” 

The “Bunching” Strategy explained 

One powerful approach is a strategy known as “bunching” — grouping multiple years of giving into one tax year. 

“Bunching is a strategy that donors can utilize to combine multiple years of charitable giving into a single tax year in order to exceed the standard deduction and itemize their deductions,” Grimmer says. “Then they don't come out of pocket again for years, and instead, use the balance of their fund to fulfill their giving.” 

Here is an example of the bunching strategy: putting $30,000 into a fund in year one instead of $10,000 per year over three years.  

“That $30,000 given in year one would likely get the donor to that itemization limit, and they would still end up giving away the exact $30,000 from the fund, just in $10,000 increments over three years.” 

Donor-advised funds—a popular offering from the Community Foundation—make this process simple and flexible. 

Why 2025 is a critical year 

New tax law changes taking effect January 1, 2026, make 2025 an especially important year to review your giving strategy if you anticipate itemizing your taxes. Among the biggest shifts: 

A new floor for charitable deductions: Starting in 2026, charitable donations will only be deductible to the extent they exceed 0.5% of a taxpayer’s adjusted gross income (AGI). 

• For example, a taxpayer with $100,000 in AGI and $5,000 in charitable giving would not be able to deduct the first $500 of their charitable gifts (calculated as 0.5% of $100,000). The remaining $4,500, however, would be deductible. 
• This provision does not affect contributions made before December 31, 2025. As a result, many donors are considering accelerating their charitable giving in 2025 to take advantage of the current, more favorable deduction rules. 

A universal deduction for non-itemizers: Starting in 2026, individuals who don’t itemize will be able to deduct up to $1,000 (or $2,000 for married couples filing jointly) in charitable donations. 

Expert tips for year-end giving 

The Community Foundation’s team offers a few key reminders for those considering charitable gifts before December 31, 2025: 

• Start early. Don’t wait until the last week of the year to make your donations — the IRS requires that gifts be received or postmarked by December 31, to count for that tax year. This is especially important for donors making gifts via their Individual Retirement Account or brokerage account as these types of gifts require extra processing time.  
• Consult your tax professional. Everyone’s situation is different, so it’s important to review your giving strategy with an accountant or financial advisor. 
• Consider appreciated assets. Donating stock or other appreciated securities can help you avoid capital gains taxes while maximizing your charitable impact. 

“We want to make generosity easy and accessible for everyone,” Grimmer says. “Whether you’re giving $50 or $50,000, it should feel good, make sense financially, and make a difference right here in our community.” 

To learn more about charitable giving strategies, reach out to Nick Grimmer, ngrimmer@foundationhoc.org, or visit foundationhoc.org/yearendgiving. 

The information provided is for educational and general informational purposes only and should not be construed as financial, tax, legal, or investment advice. Please consult with a qualified financial advisor, tax professional, or attorney before making any financial decisions or taking any action based on this content.

Article originally published in the Daily Sentinel on November 26, 2025.