As the end of the year approaches, many of us are reflecting on the season of giving — a time when donations play a critical role in sustaining charitable organizations. With ongoing global challenges, including the war in Ukraine, lingering effects of the pandemic, and economic uncertainty, many nonprofits are feeling the strain. With a change in administration on the horizon, the landscape for nonprofits may shift, bringing both new opportunities and challenges. Personal donations are down, and the need for support is more urgent than ever.
This year, we encourage you to be more intentional with your giving — focusing on smart, strategic ways to make a meaningful impact. Here are some updated and practical tips to guide your charitable giving in 2024:
- Give Smart, Not Just Cash
While a cash donation may seem easy, it’s often not the most tax-efficient way to give. Instead, consider donating appreciated assets like stocks, mutual funds, or real estate. These assets can offer significant tax advantages since you can avoid paying capital gains taxes and still take a charitable deduction for their full market value. Other assets, such as life insurance or IRA distributions, can also be valuable gifts. Be sure to consult your financial advisor for tailored guidance.
- Plan Ahead — Don’t Wait Until the Last Minute
Waiting until the final days of December to make a charitable donation can result in delays. If you’re giving through a Donor-Advised Fund (DAF) or contributing non-cash assets, it may take extra time to process. Start early to ensure your gifts are counted for the year and reach the organizations in time to make an impact.
- Avoid Giving Over the Phone
Phone solicitations may be tempting, but they come with risks. You can’t always be sure who’s on the other end of the line, and giving personal or financial information over the phone can open the door to potential scams. If you’re interested in supporting a cause, ask the organization to send you more information via mail or email, and then make your donation through a secure website.
- Make Charitable Giving a Family Tradition
Gathering around the dinner table at Thanksgiving is the perfect time to discuss giving with family members. Talk about causes that matter to you, and encourage younger generations to understand the importance of giving back. Discuss how you can collectively support causes that align with your values, and consider giving together as a family. It’s a great opportunity to teach generosity and cultivate lifelong habits of philanthropy.
- Keep It Flexible — Avoid Over-Restricting Your Gifts
Nonprofits often need unrestricted funds that can be used where the need is greatest. In a year when rising costs are affecting every sector, many organizations are facing challenges in covering basic operational expenses. If you’re asked to donate to a specific program or project, consider asking if a general operating gift would be more helpful. Unrestricted gifts give nonprofits the flexibility to respond to immediate needs or unexpected challenges.
- Focus Your Giving
The sheer number of causes vying for your attention can be overwhelming. However, research shows that focusing your charitable efforts on a select issue or cause not only helps create more impact but also provides you with greater fulfillment. Whether it’s climate change, education, reproductive health, or local community support, think about where your time, money, and passion can make the most difference.
- Give to Areas with Urgent Needs
Certain causes require immediate action. For example, organizations providing disaster relief, mental health support, or assistance to communities affected by long-Covid or climate change may need funding now to meet urgent needs. If you care deeply about an issue that has both immediate and long-term impacts, your donation could help accelerate the response or provide critical resources to those on the front lines.
- Consider Donor-Advised Funds (DAFs)
If you’re not already familiar with Donor-Advised Funds (DAFs), now is the time to explore this giving vehicle. DAFs allow you to make a charitable contribution, receive an immediate tax deduction, and then recommend grants to your chosen charities over time. They offer flexibility, ease, and tax benefits, making them an efficient way to manage your philanthropy. Check with your investment advisor or local community foundation for more information.
- Say No to Obligatory Giving
It’s easy to feel obligated to give to every charity that asks, especially around the holidays. However, it’s important to resist the pressure to donate to causes or organizations that don’t align with your values or interests. Don’t be afraid to politely decline requests. Try using a simple phrase like, “I’m focusing my giving on other causes this year,” or “I’ve supported this organization in the past, but I’m choosing to direct my gifts elsewhere this time.” Remember, your charitable donations should be meaningful, not just a form of social obligation.
- Maximize Your Giving Potential
As the year closes, look for ways to maximize your giving. If you’re fortunate enough to have a matching gift program through your employer, be sure to take advantage of it. Additionally, some charitable organizations offer benefits like donor recognition or membership programs that can enhance your giving experience and provide an added sense of connection to the cause.
Final Thoughts
As you plan your end-of-year giving, remember that your donations matter more than ever. Charitable organizations face increased demand for their services while grappling with decreased resources. Start early, be thoughtful in your giving, and focus on causes that resonate with you personally. With a little planning, you can make a meaningful difference and feel good about the impact you’ve created in 2024.
Wishing you a joyful and fulfilling holiday season, filled with both giving and gratitude.
Note: an earlier version of this blog post was published here in 2022.