Learn how to make the most of year-end charitable giving strategies for 2025 — including IRAs, donor-advised funds, and gifts of appreciated stock.
If you’re making a charitable donation to your favorite nonprofit, make sure you’re eligible for an income tax deduction for the current year by meeting these important year-end deadlines.
Before You Give: Call the Nonprofit
Before sending your gift, call the nonprofit organization to:
- Find out which types of assets and donations they can accept.
- Inform them of any assets you’re transferring or donations you’re sending.
- Confirm their internal deadlines for accepting and processing gifts to ensure you meet tax deduction requirements.
They will truly appreciate it!
Beyond cash donations, several other giving options can help you maximize your tax benefits before December 31.
Other Common Year-End Giving Options
Charitable IRA (Qualified Charitable Distribution):
If you’re age 70½ or older, you can transfer up to $108,000 per year (2025 limit) directly from your IRA custodian to a qualified charity — potentially tax-free. This transfer counts toward your required minimum distribution (RMD) if you’re 73 or older and can reduce taxable income. To qualify as a year-end gift, the funds must leave your IRA and clear the account by December 31. Note: Donor-advised funds and private foundations are not eligible recipients for QCDs.
Donor-Advised Funds (DAFs):
If you have a donor-advised fund, you can make a contribution to it by December 31 for a current-year tax deduction, even if the grant to a charity occurs later. However, grants made from a DAF to other nonprofits do not qualify for an additional charitable deduction — only the original contribution to the DAF does.
Gifts of Real Estate or Other Noncash Assets:
Complex gifts such as real estate, closely held business interests, or valuable collectibles often require appraisals, title transfers, and legal review. Begin these well before mid-December to ensure all steps clear by year-end. Coordinate with your charity and financial advisor early.
Appreciated Securities and Mutual Funds:
Donating long-term appreciated securities allows you to claim a fair market value deduction while potentially avoiding capital gains tax. Most brokers recommend initiating transfers by December 20 (or earlier) to ensure timely completion. Do not sell the stock first, or you’ll be taxed on the gain.
Deadlines by Gift Type
IMPORTANT
Remember that some nonprofits have limited business hours over the holidays. Keep this in mind as you plan your year-end charitable gifts. Be sure to contact them as soon as possible to ensure that you receive a timely acknowledgment letter for tax year 2025. Year-end giving can get tight.
- Appreciated Stock: Initiate transfers by December 20–23, 2025 (or earlier, depending on your broker). This ensures both brokers have sufficient time to process and value the gift. Do not sell the stock first, or you’ll incur capital gains tax.
- Credit Card Gifts: Must be completed by 11:59 p.m. (your local time) on December 31, 2025. The IRS recognizes the date the charge is made — not when it’s posted or paid — as the gift date. To avoid processing delays or time-zone issues, make your gift earlier in the evening.
- Checks (U.S. Mail): Must be postmarked by December 31, 2025.
- Checks (FedEx, UPS, DHL): Must be physically received by December 31, 2025 to qualify.
- IRA Qualified Charitable Distributions (QCDs): The funds must leave and clear your IRA account by December 31, 2025 — not just be requested or mailed.
- Wire Transfers: Initiate no later than December 27–28, 2025, depending on your bank’s processing schedule. Some institutions may require earlier initiation.
- Donor-Advised Fund (DAF) Grants: Processing times vary; submit recommendations early. Remember, DAF grants themselves are not tax-deductible — the deduction occurs when you contribute to the fund.
Please remember to check with your advisor or CPA for exact details. The above is drafted to serve as a general guideline for year-end gifts and should not be relied on as legal advice.
Notes & Updates for 2025
- New IRS reporting for QCDs: For 2025 distributions, IRA custodians must use Code Y in Box 7 of Form 1099-R to identify qualified charitable distributions (QCDs). When reporting a QCD, use Code Y together with Code 7, 4, or K, as applicable.
- Future RMD age: Under SECURE 2.0, the required minimum distribution (RMD) starting age increases to 75 beginning in 2033 (after rising to 73 in 2023).
- QCD timing tip: If using an IRA checkbook, the check must be cashed by the charity by December 31 to count for that tax year. For custodian-to-charity transfers, ensure the custodian processes the QCD by year-end.
