With the holiday season upon us, many of our clients begin thinking not only about gift lists and travel plans but also about how to give back. Whether it’s charitable donations, gifting to children or grandchildren, or finding meaningful ways to volunteer, this is a season rich with opportunity to align your financial decisions with your values.
In this guide, we’re sharing practical year-end giving strategies—from donor-advised funds to tax-smart family gifts—to help you connect wealth with values in a way that’s both meaningful and intentional.
1. Start with Your Values, Not Your Wallet
Before making any year-end financial gifts or donations, we encourage you to take a step back and ask: What causes matter most to me? What legacy do I want to build? What example do I want to set for my family?
When your giving strategies align with your personal values, it becomes a reflection of who you are and what you stand for. Whether it’s supporting local food banks, funding education, or helping your grandchildren save for the future, the most meaningful generosity begins with clarity.
2. Use Donor-Advised Funds for Strategic Giving
A donor-advised fund (DAF) is a flexible way to support the causes you care about, on your timeline. You can contribute cash, securities, or other assets now, receive a potential tax deduction, and recommend grants to qualified nonprofits over time.
Benefits of a DAF include:
- Potential for immediate tax deduction
- Ability to give over months or years
- Anonymity, if desired
- Simplified recordkeeping for tax time
This approach allows you to set aside funds now and decide later where you want them to go. It’s especially helpful if you want to make a meaningful donation before year-end but need time to choose the right organizations.
Action Item: If you’re considering a DAF, talk to your advisor about options that align with your tax strategy and charitable goals. Keep in mind that contributions are irrevocable and grants must go to qualified 501(c)(3) organizations.
3. Make Tax-Efficient Gifts to Family
The holidays are a natural time to give to loved ones. Whether you’re helping a child with a home down payment or contributing to a grandchild’s college fund, there are tax-efficient ways to do it.
For 2025, the annual gift tax exclusion allows you to gift up to $19,000 per recipient without triggering federal gift tax. That means a married couple can jointly gift $38,000 to each child or grandchild—and do so every year.
Here are a few ideas:
- Fund a 529 plan for education savings
- Gift appreciated stock (if they’re in a lower tax bracket)
- Contribute to a custodial account (UGMA/UTMA)
Action Item: Consider using year-end gifts to start or grow something meaningful—a savings plan, a travel fund, or even an experience the whole family can share.
4. Review Your Charitable Giving Strategies
Beyond donor-advised funds, other giving strategies can help maximize your giving. Depending on your situation, these might include:
Qualified Charitable Distributions (QCDs)
If you’re 70½ or older, you can donate directly from your IRA to a qualified charity—up to $100,000 per year. This is called a Qualified Charitable Distribution (QCD), and it can satisfy part or all of your Required Minimum Distribution (RMD) while excluding the donated amount from your taxable income.
Why it matters: For retirees who don’t need all of their RMD, this can be an effective way to reduce taxable income while supporting a qualified charity.
Gifting Appreciated Assets
Instead of writing a check, consider donating long-term appreciated assets—like stocks or mutual fund shares. When you give these directly to a qualified charity, you avoid capital gains taxes on the appreciation and may be eligible to deduct the full fair market value.
Why it matters: If you’ve held a stock that’s grown significantly, this approach can help you give more without increasing your tax bill.
Donation Bunching
With the standard deduction now higher ($31,500 for married couples filing jointly in 2025 and $32,200 in 2026), many people no longer itemize deductions each year. Bunching is a strategy where you consolidate multiple years of charitable giving into one tax year, allowing you to exceed the standard deduction and claim the full tax benefit.
Why it matters: It helps you maximize deductions in years when you itemize, and you can still distribute grants over time if you use a donor-advised fund.
5. Volunteer in Your Community
Not all generosity is financial. Many of our clients tell us their favorite holiday memories involve volunteering together—whether it’s serving at a food pantry, assembling care packages, or participating in community drives.
These moments are often more memorable (and more impactful) than exchanging gifts. Volunteering can teach younger generations the value of service and remind us all that wealth includes our time, energy, and presence.
Each holiday season, the SD Capital team looks for ways to support causes that reflect our values: taking care of each other, investing in our communities, and doing the right thing.
A few of the organizations and events close to our hearts include:
Toledo Children’s Hospital
Toledo Children’s Hospital delivers life-changing care to the bravest children and families across our region. We’re honored to stand beside the real superheroes they serve—showing up with compassion, support, and gratitude whenever and however we’re needed.
Shoes 4 the Shoeless
Shoes 4 the Shoeless delivers new shoes and socks to local children in need, because every child deserves to walk with comfort and dignity. We’re proud to support their mission and stand behind the work they do in our community every day.
Oregon Schools Foundation
The Oregon Schools Foundation (OSF) is a nonprofit organization uniting local businesses and our community to create the best educational opportunities for children in the Oregon City School District. The stories we hear from students, staff, parents, and volunteers continually inspire us and remind us why this mission matters.
We encourage you to find a cause you believe in and make giving back part of your family tradition.
6. Talk to Your Advisor About Integrating Giving Into Your Financial Plan
Generosity doesn’t have to begin and end with the holidays. For many of our clients, building giving strategies into their ongoing financial plan helps them give more consistently and with greater purpose.
Whether you’re passionate about supporting local nonprofits, funding scholarships, or giving back to causes that shaped your life, your financial plan can reflect the values you care about most.
Your advisor can help you:
- Discover tax-smart giving options that align with your income and goals
- Incorporate giving into your retirement, estate, or legacy plans
- Create a multi-generational giving strategy that includes your kids and grandkids
- Determine whether tools like DAFs, QCDs, or appreciated stock might work for you
Action Item: Don’t leave giving strategies for the last week of the year. Let’s start a conversation now to make sure your generosity fits naturally into your financial plan—and your life.
7. Keep It Simple, Honest, and Personal
We believe generosity should feel personal, thoughtful, and intentional. We also believe in keeping things straightforward. That means focusing on what matters to you, and helping you understand how to make a lasting impact with the wealth you’ve built.
You don’t need to be a millionaire to make a difference. Generosity, at its best, is about kindness and connection. It’s about using what you have to serve the people and causes you care about.
This holiday season, we invite you to think beyond the usual transactions. Think about what you want your giving to mean.
Let’s Make a Plan Together
If you’re considering year-end giving or want to explore how generosity fits into your bigger financial picture, we’re here to help.
Reach out to your SD Capital advisor to start the conversation around meaningful and personalized giving strategies.
The opinions expressed in this material are for general informational purposes only and are not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is not a guarantee of future results. All indices are unmanaged and cannot be invested in directly.
Investing involves risk, including the potential loss of principal. No investment strategy can guarantee success or protect against loss in all market conditions.
This material is not intended to be a substitute for individualized financial, tax, or legal advice. Please consult your financial advisor, tax professional, or legal counsel regarding your specific situation.
Brent Shimman is the co-founder of SD Capital with over 20 years of experience helping clients align their finances with what matters most. He lives in Oregon, Ohio with his wife and five children.
