This post closes Week 12, and with it, the full twelve-week content calendar. Before getting into today's topic, here's a quick look back at what the week covered, followed by the strategies that bring the giving conversation full circle: how donors can give more effectively, and how nonprofits can help them do it.
Quick Explainer: Tax-Smart Giving Strategies
Charitable giving is most powerful when it is coordinated with financial planning. The strategies below are not aggressive tax maneuvers. They are well-established, IRS-recognized methods that create more value for the donor, the nonprofit, or both, simply by giving thoughtfully rather than reflexively.
Give Appreciated Securities Directly
Giving appreciated securities directly to a charity is one of the most efficient giving strategies available. When a donor gives stock or mutual fund shares that have increased in value, rather than selling first and donating cash, they avoid the capital gains tax on the appreciation and still deduct the full fair market value.
Use a Donor-Advised Fund to Separate Timing from Giving
A donor-advised fund allows a donor to make a large contribution in a high-income year, receiving the full deduction immediately, and then distribute grants to nonprofits over subsequent years, on their own timeline. This is especially powerful when a donor receives a bonus, sells a business, or has another income event that pushes them into a higher tax bracket for the year.
Use a Qualified Charitable Distribution After Age 70½
Qualified Charitable Distributions are the most tax-efficient giving method for IRA owners age 70½ or older. Because the distribution goes directly from the IRA to the charity, it never appears as taxable income at all, not even temporarily. For donors who take the standard deduction rather than itemizing, which is the majority of taxpayers since the 2017 tax law changes, a QCD is often more valuable than an equivalent cash gift, because the tax benefit is captured automatically without needing to itemize.
| Strategy | Best For | What It Avoids |
|---|---|---|
| Appreciated securities | Donors holding stock or funds with significant unrealized gains | Capital gains tax on the appreciation |
| Donor-advised fund | Donors with a high-income year (bonus, sale, liquidity event) | Mismatch between when the deduction is most valuable and when giving happens |
| Qualified charitable distribution | IRA owners age 70½+, especially those taking the standard deduction | Taxable income inclusion of the distributed amount |
The Conversation Nonprofits Should Be Equipped to Have
None of these three strategies require a nonprofit to provide tax advice. What they require is fluency: knowing the vocabulary well enough to mention the right option at the right moment, and knowing when to suggest the donor speak with their own CPA or estate attorney to confirm the details for their specific situation.
A development officer who can say, “Many of our donors find it more tax-efficient to give appreciated stock rather than cash. Would that work for your situation?” is offering genuine value, not overstepping into advice. The same is true of mentioning QCDs to donors in their seventies, or DAFs to donors who mention a recent liquidity event. These moments build trust and frequently lead to larger gifts than would otherwise have been considered.
Virginia's community foundations — in Richmond, Hampton Roads, Roanoke, the New River Valley, and Northern Virginia — are well equipped to help donors execute all three of these strategies, particularly DAF contributions and the acceptance of appreciated securities. For nonprofits without the internal capacity to process complex gifts directly, partnering with a local community foundation can remove the administrative barrier entirely while still capturing the gift.
EveryCentCounts helps nonprofits build the financial infrastructure that supports sophisticated giving conversations: gift acceptance policies for non-cash assets, accounting procedures for DAF and QCD receipts, and donor-facing financial transparency that builds the confidence major donors look for. Talk to us about strengthening your development program's financial foundation.
Action Steps
A single sentence, “Did you know you can give stock or mutual fund shares directly and avoid capital gains tax while still deducting the full value?”, opens a conversation many donors have never had with their giving in mind.
If you anticipate a high-income year, such as a bonus, a business sale, or another liquidity event, ask whether a larger DAF contribution that year, with distributions spread over subsequent years, makes sense for your situation.
If you are taking required minimum distributions from an IRA and also give to charity, a QCD may let you do both more efficiently than writing a separate check. Confirm the details with your CPA or financial advisor.
That's a Wrap on the 12-Week Calendar
From pricing and profitability, to financial equity and community wealth, to nonprofit fiscal year-end and strategic giving, thank you for following along. Every post remains available as a resource for your business or organization whenever the topic becomes relevant again.
Ready to Put These Strategies into Practice?
EveryCentCounts provides accounting, bookkeeping, and CFO Advisory services to Virginia small businesses and nonprofits — including the financial systems that support smarter, more strategic giving programs.
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- IRS. 2026. “Publication 526: Charitable Contributions.” irs.gov/publications/p526.
- IRS. 2026. “Qualified Charitable Distributions.” irs.gov.
- National Philanthropic Trust. 2025. “Donor-Advised Fund Report.” nptrust.org.
- Giving USA Foundation. 2025. “Giving USA 2025: The Annual Report on Philanthropy.” givingusa.org.
- AICPA. 2025. “Charitable Giving Tax Strategies.” aicpa-cima.com.