Giving with Purpose: A Holiday Guide to Charitable Giving & Philanthropy

Dec 1, 2025

Make your giving more meaningful, strategic, and impactful this season—and beyond.

 

The Spirit of the Season

The holidays inspire us to reflect, connect, and give back. Whether you’re writing a check, donating food or items, or volunteering your time, thoughtful charitable planning can turn generosity into lasting impact. This guide will help you align your giving with both your values and your financial plan.

Giving is can be more than just generosity, it can be about strategy

Philanthropy may belong in your financial plan. When done intentionally, giving can make a meaningful difference for the organizations and causes you support—while also providing potential tax benefits.

Thoughtful giving allows you to express and pass down your values to the next generation, ensuring your generosity leaves a lasting imprint.

Tip: If you itemize deductions, charitable gifts may reduce your tax bill. Even if you typically take the standard deduction, strategies like bunching contributions using Qualified Charitable Distributions (QCDs) or using donor-advised funds (DAFs) may help you maximize tax savings.

Clarify your values before writing the check

Many people already know which causes they’re passionate about. But if you’re uncertain, reflecting on a few key questions can help you narrow your focus:

  • What issues or causes speak to you most?
  • Do you want to support local needs or global initiatives?
  • Would you rather provide immediate relief or invest in long-term change?
Exercise: Draft a short “giving mission statement” that reflects the kind of impact you want your gifts to make.

Choose the Right Giving Vehicle for Your Goals

Different strategies can help you give more effectively, depending on your situation:

Strategy Best for Key Benefits
Cash donations Simplicity Immediate impact, easy to track
Donating appreciated securities Tax-conscious donors Avoid capital gains and get a deduction
Qualified charitable distributions (QCDs) Donors 70½+ with IRAs Satisfy RMDs while giving tax-free
Donor-Advised Funds (DAFs) Those that need a large deduction now Flexible, centralized giving strategy
Charitable trusts or foundations Donors providing sizable assets to charity Legacy, control, and tax planning

 

Tip: Donating appreciated stock can offer more tax savings than cash. Here is an example: Mark and Susan have held stock for many years and have seen a large appreciation in its value. By gifting shares of the stock instead of cash, they can avoid the income tax on the gain and receive a charitable deduction for the fair market value of the stock gifted

Make Giving a Shared Tradition

Bringing family into your giving can make the experience even more meaningful.

  • Invite children or grandchildren to research charities and make joint decisions.
  • Talk about the “why” behind your giving or volunteering.
  • Consider giving each family member a small amount to donate on their own.
Why it matters: Giving together builds empathy, strengthens family bonds, and reinforces values that last across generations.

Build Your Plan—This Year and Beyond

Charitable giving is most impactful when it’s consistent, intentional, and supported by a clear process you can revisit each year.

  • Talk to your financial advisor about integrating giving into your year-end planning.
  • Keep detailed records of all donations for tax purposes.
  • Review your charitable impact annually and adjust your strategy as needed.

Ready to make your giving count?

Connect with an advisor at First Community Trust to create a charitable giving plan that reflects your values, supports the causes you care about, and supports your financial goals.

 

 

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