Well, December has finally arrived — that magical time of year we all look forward to (and maybe dread just a little, too). On one hand, you’ve got the joy of good food, gifts under the tree, and catching up with family. On the other hand, you’ve got the joy of spending time with that side of the family, mapping out the travel schedule, and politely staying neutral on who’s dressing really deserves the crown.
The holiday season is famous for all of this — the traditions, the chaos, and the laughs along the way. But just as much as it’s about family and festivities, it’s also a season of giving. And giving doesn’t just mean buying gifts or baking cookies (though those count too) it can mean taking a moment to support the causes and communities that matter most.
So, before the in-laws pull into the driveway and things get hectic, let’s take a look at a few ways you can give back this month. From simple gestures to more strategic approaches, here are some ideas to get you into the right mindset and spirit of generosity this December.
1. The Simple Way: Direct Giving
Sometimes the easiest way is the best. You can donate online, write a check, or drop off clothes, furniture, or other items. It’s quick, it’s impactful, and it doesn’t require a lot of planning. Just keep in mind, you’ll only get a tax deduction if you itemize.
2. Donor-Advised Funds (DAFs)
Think of a DAF like your own charitable “checking account.” You put money (or stock) in, take an immediate tax deduction, and then decide over time which charities to support. It’s flexible, it’s organized, and the money can even grow while you decide where to give.
3. Charitable Trusts
This is where philanthropy meets estate planning. With a Charitable Remainder Trust (CRT), you (or your family) get income first, and the charity gets what’s left later. A Charitable Lead Trust (CLT) does the opposite: the charity gets income now, and your heirs get what’s left down the road. These are great tools if you want to support a cause and plan ahead for your family.
4. Using Your Retirement Accounts
If you’re over 70½, you can send money straight from your IRA to a charity. This is called a Qualified Charitable Distribution (QCD), and it even counts toward your Required Minimum Distribution — without adding to your taxable income. You can also list a charity as the beneficiary of your IRA or life insurance policy, which makes giving simple when it comes to estate planning.
5. Donating Investments
If you’ve owned stock, mutual funds, or even real estate that has gone up in value, giving it directly to a charity can be a win-win. You avoid paying capital gains tax, and the charity gets the full value. It’s one of the most tax-efficient ways to give.
6. Leaving a Legacy
Want to make sure your giving continues beyond your lifetime? You can leave to a charity in your will or trust. Some people also set up things like charitable gift annuities or pooled income funds, which provide you with income during your life, and leave what’s left to charity after. It’s a thoughtful way to connect charitable giving with long-term financial planning.
Wrapping It Up
There’s no “one right way” to give. Some approaches are simple; others are more strategic. What matters is supporting the causes that mean the most to you, in a way that also makes sense for your finances. Whether you’re giving now, planning for later, or both, you’ve got options that can make a lasting impact.
And hey — if giving also helps you survive awkward holiday conversations with that part of your family (“Yes, Aunt Ruth, I can’t wait to eat your tofurky”), that’s just an added bonus.
Generally, a donor advised fund is a separately identified fund or account that is maintained and operated by a section 501(c)(3) organization, which is called a sponsoring organization. Each account is composed of contributions made by individual donors. Once the donor makes the contribution, the organization has legal control over it. However, the donor, or the donor’s representative, retains advisory privileges with respect to the distribution of funds and the investment of assets in the account. Donors take a tax deduction for all contributions at the time they are made, even though the money may not be dispersed to a charity until much later.
