Each year, our team of financial advisors receives a steady flow of questions about the best ways to approach charitable giving during the last months of the year.
For many high-income earners — physicians, dentists, executives, business owners, and retirees — year-end giving becomes part of broader tax, estate, and legacy planning. At Spaugh Dameron Tenny, we see these decisions play a recurring role in shaping overall financial wellness and long-term charitable goals.
Below, you’ll find clear, fact-based answers to the questions we are asked most often.
Charitable giving involves any donation of money, goods, services, or time made to organizations or causes in need. Contributions can take various forms, including:
Year-end giving is particularly popular because many donors aim to make tax-deductible gifts before the end of the calendar year.
The IRS sets limits on charitable deductions based on the type of gift and the recipient organization.
Always verify that the organization is a qualified 501(c)(3) and keep proper documentation.
Even meaningful and generous gifts do not always qualify for a deduction. These do not count:
(Source: IRS Charitable Contributions – Publication 526)
Yes, if you itemize deductions. Charitable giving is a tax deduction, not a tax credit. A $10,000 cash gift lowers taxable income by $10,000, not the tax liability.
For example, if you’re in the 30% tax bracket, a $10,000 donation may lower your taxes by about $3,000. However:
For clarity on choosing between itemizing and taking the standard deduction, consult a CPA or review IRS guidance.
It depends on:
The deduction reduces taxable income, not taxes directly. For specific advice, consult a tax professional.
To count for the current tax year, the end-of-year charitable giving deadline is as follows:
(Source: IRS Publication 526)
For many high-income earners, donating appreciated securities is one of the most effective charitable strategies.
If you donate investments held for longer than 12 months:
You donate stock worth $10,000 that you originally purchased for $5,000.
If you want to maintain your portfolio allocation, you can repurchase the same stock with cash, which resets your cost basis higher.
If you've held the security for less than 12 months:
(Source: IRS Publication 526)
| Category | Cash Donation | Appreciated Securities (>12 months) |
| Deduction Amount | Deductible at gift value | Deductible at fair market value |
| Capital Gains Impact | No capital gains benefit | Avoid capital gain on appreciation |
| AGI Limit | Up to 60% of AGI | Typically, 30% of AGI |
| Best Use Cases | Straightforward giving | High-appreciation assets for greater tax efficiency |
| When It's Not Ideal | If you want to preserve cash flow | If held <12 months (only cost basis deductible) |
Yes. For gifts over $250, the IRS requires a written acknowledgment. (Source: IRS Publication 1771)
No. You must itemize to claim charitable deductions.
Yes, subject to the same AGI limits as cash or asset donations.
Yes, donating appreciated securities held for more than 12 months can completely avoid capital gains tax.
Yes. QCDs count toward your Required Minimum Distribution for the year.
Year-end charitable giving allows you to support the causes and organizations that matter to you while potentially improving your tax situation. For many high-income earners, donating appreciated securities is one of the most efficient ways to give.
If you're reviewing your year-end plan, consider talking with a financial planner to ensure your giving aligns with your generosity and financial goals.
If you want to see how charitable giving fits into your overall financial plan, our advisors at Spaugh Dameron Tenny are ready to help you explore your options with clarity and confidence.
Schedule a complimentary discovery call today.
Any discussion of taxes is for general information purposes only, does not purport to be complete or cover every situation, and should not be construed as legal, tax, or accounting advice. Clients should confer with their qualified legal, tax, and accounting advisors as appropriate.
CRN202811-9951966
Shane Tenny, CFP®, is the Managing Partner of Spaugh Dameron Tenny and a nationally recognized financial advisor. Since 2000, he has combined extensive financial knowledge with a passion for behavioral finance—helping clients make informed decisions based on both data and mindset. Shane often contributes to industry publications, appears as a guest on podcasts, and has been a leader in the financial planning field for years. He is known for making complex topics clear and practical for busy, high-income professionals seeking personalized advice they can trust.
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