Gratitude in Action: Charitable Giving Strategies for the Holiday Season

As the holidays draw near, I find myself reflecting on the spirit of gratitude that fills our community. Every year, I have the privilege of working with families who want to make a difference—not just for their loved ones, but for the causes that matter most to them. If you’re thinking about charitable giving this season, I’d like to share some practical strategies that can help you give generously while making the most of your financial resources.

Donor Advised Funds: Giving with Flexibility

One of the most popular tools I see clients use is the donor advised fund (DAF). Think of a DAF as a charitable “checking account.” You make a contribution—often to a local organization like the Grand Traverse Regional Community Foundation or a national sponsor—and get an immediate tax deduction. Then, you can recommend grants to your favorite charities over time. This is especially handy if you’ve had a high-income year or want to “bundle” several years’ worth of donations to maximize your tax benefits. For example, instead of giving $5,000 each year, you might contribute $15,000 to your DAF now, claim a bigger deduction, and spread out your gifts over the next few years.

Gifting RMDs from Retirement Accounts: A Win-Win

If you’re taking required minimum distributions (RMDs) from your IRA, you have a unique opportunity to give directly to charity through a Qualified Charitable Distribution (QCD). This means you can transfer up to $108,000 (for 2025) straight from your IRA to a qualified charity, and that amount won’t count as taxable income. Just remember: QCDs must go directly to the charity—not to a donor advised fund. If you’re interested, talk to your IRA custodian to make sure everything is set up correctly.

Leaving Retirement Assets to Charity—and Family

Many people don’t realize that retirement accounts like traditional IRAs and 401(k)s are taxed when passed on to heirs. But if you name a charity as the beneficiary, the charity receives the full amount tax-free. Meanwhile, you can leave assets that get a “step-up” in basis—like appreciated stocks or real estate—to your family. This way, your loved ones inherit those assets at their current market value, which can save them a bundle in capital gains taxes. Coordinating your beneficiary designations can make a real difference for both your family and your favorite causes.

Charitable Giving for Taxable Estates

If your estate is larger than the federal exemption ($13.61 million per person in 2025, rising to $15 million in 2026), charitable gifts can help reduce estate taxes. Bequests to qualified charities are fully deductible from your taxable estate. Some families use charitable remainder trusts or other planned giving vehicles to support the organizations they care about while minimizing taxes. Even if your estate isn’t subject to federal tax, these strategies can still help you support the community and leave a legacy.

Supporting Local Causes Through Community Foundations

I’m a big believer in the power of local giving. Community foundations like ours in Grand Traverse County are deeply connected to the needs of our neighbors—whether it’s housing, education, or health care. By setting up a donor advised fund or making a direct gift, you can help address local challenges and make sure your generosity stays close to home. Plus, these organizations can guide you to nonprofits that align with your values.

“Lumping” Gifts to Surpass the Standard Deduction

Since the Tax Cuts and Jobs Act, the standard deduction has jumped to $14,600 for single filers and $29,200 for married couples in 2025. That means fewer people itemize deductions, and the tax benefit of annual giving may be reduced. One solution is to “lump” several years’ donations into a single year—either through a donor advised fund or direct gifts—to exceed the standard deduction and maximize your tax savings.

Putting Gratitude Into Action

Charitable giving isn’t just about numbers—it’s about making a difference, expressing gratitude, and building a legacy. Whether you’re supporting local nonprofits, national organizations, or causes close to your heart, there are smart ways to give that benefit both you and your community.

About the Author:

Ryan Hulst is the founder of Grand Traverse Elder Law and one of our Empowerment Ambassadors. A veteran himself, Ryan is dedicated to helping fellow veteran’s and their families plan for the future.

Ryan Hulst
Grand Traverse Elder Law
231.714.4501
ryan@gtelderlaw.com