Charitable gifting: Who can do it and what are the options?

Giving to causes you care about can be a meaningful part of your financial plan. Charitable gifting not only helps support organizations and communities but can also fit into your broader goals for family and legacy.

Who can make charitable gifts?

The short answer is: almost anyone. You don’t have to be wealthy to make an impact. Individuals, couples, and families often include charitable giving in their financial strategy, either during their lifetime or as part of their estate plans.

That said, certain strategies are especially useful for people who:

• Are already giving regularly to nonprofits, churches, or schools
• Are subject to required minimum distributions (RMDs) from retirement accounts
• Want to leave a legacy gift to family, faith communities, or charities after their lifetime
• Own highly appreciated assets, such as stock or real estate, and want to avoid large tax burdens when transferring them

What are the options?

There are several ways to structure charitable giving, depending on your situation and goals:

• Direct cash gifts: The simplest approach—making contributions directly to a charity or organization.
• Qualified charitable distributions (QCDs): If you’re 70.5 or older, you can direct up to $108,000 annually (for 2025) from an IRA to a qualified charity. This counts toward your RMD and is not considered taxable income.
• Appreciated securities: Donating stocks, bonds, or mutual funds that have grown in value allows you to give more while potentially avoiding capital gains taxes.
• Donor-advised funds (DAFs): A flexible vehicle that allows you to make contributions, receive a tax deduction, and then recommend grants to charities over time.
• Annual gift exclusion (personal/family): The IRS allows you to give up to $19,000 per year (for 2025) to any other individual (such as a child or grandchild) without incurring gift tax or having to use up your lifetime exemption. This is a powerful, tax-free way to transfer wealth to family members as part of a combined giving and legacy strategy.
• Legacy gifts: Naming a charity in your will or trust ensures your support continues even after your lifetime.

Charitable gifting isn’t one-size-fits-all. The right option depends on your financial picture, your stage of life, and the impact you hope to make. By exploring the available strategies, you can align your giving with both your values and your long-term plan.