Smart Giving Strategies: Non-Cash Gifts That Maximize Your Impact

While most people think of writing a check or making an online donation, some of the most tax-efficient ways to give don’t involve cash at all. If you’re looking to make a meaningful impact while also maximizing the financial benefits of charitable giving, consider these powerful tools:

Donor-Advised Funds (DAF)

A Donor-Advised Fund is like a charitable investment account for the sole purpose of supporting nonprofit organizations. You can contribute assets to your DAF- cash, stocks, or other property- receive an immediate tax deduction, and then recommend grants to charities over time.

Why it’s smart:

• You get a deduction in the year you contribute, even if the funds are distributed later.
• You can donate appreciated assets (like stocks) to avoid paying capital gains tax.
• It simplifies recordkeeping with one receipt that can result in many gifts.

Good for: Donors who want to bundle gifts, plan for multi-year giving, or streamline their charitable donations with flexibility.

Appreciated Stock Gifts

Gifting publicly traded stock or mutual funds that have increased in value is a highly tax-efficient strategy. Rather than selling the stock and donating the proceeds, you transfer the shares directly to the nonprofit.

Why it's smart:

• You avoid paying capital gains tax on the application.
• You can deduct the full fair market value of the asset if held for more than one year.
• It preserves your cash flow while supporting your favorite cause.

Good for: Donors with long-held investments or stock portfolios who want to give without reducing their liquidity.

IRA Qualified Charitable Distributions (QCDs)

If you’re age 70½ or older, you can donate up to $100,000 annually directly from your Traditional IRA to a qualified nonprofit through a Qualified Charitable Distribution.

Why it’s smart:

• QCDs count toward your Required Minimum Distribution (RMD) but are not counted as taxable income.
• Reducing your taxable income can help lower Medicare premiums and other income-based taxes.
• It’s one of the few giving tools available to non-itemizers that still results in a tax benefit.

Good for: Retirees who want to give generously without increasing their taxable income.

Let Your Assets Work for Good

Using non-cash assets to give allows you to stretch your impact further, preserve liquidity, and take advantage of tax rules that reward smart philanthropy. If you’re considering one of these strategies, consult with your financial advisor or reach out to our team. We’re happy to work with you and your advisors to make the process easy and effective.

Your generosity, combined with smart planning, can create transformational outcomes for you, your loved ones, and the communities we serve.

This is being provided for informational purposes only and should not be construed as a recommendation to buy or sell any specific securities. Past performance is no guarantee of future results, and all investing involves risk. Index returns shown are not reflective of actual performance, nor reflect fees and expenses applicable to investing. One cannot invest directly in an index. The views expressed are those of the Presenter and do not necessarily reflect the views of the ECTC Foundation or any of its affiliates. Information is based on sources believed to be reliable; however, their accuracy or completeness cannot be guaranteed.