As the year draws to a close, it’s a wonderful time to consider how your charitable giving can make a meaningful impact while offering potential tax benefits. With thoughtful planning, you may be able to reduce your tax liability while supporting the causes and organizations that matter most to you.
Here are four charitable giving strategies to consider before year-end:
IRA Charitable Rollover (Qualified Charitable Distribution)
If you’re age 70½ or older, you can transfer up to $111,000 directly from your IRA to an eligible charity in 2026. This may help satisfy your required minimum distribution (RMD), if applicable, while reducing your taxable income. While these gifts cannot be directed to donor advised funds, they can support other charitable funds at Aspen Community Foundation (ACF), including Designated Funds.
Gifts of Appreciated Assets
Donating appreciated stock, real estate, or other eligible assets may allow you to avoid capital gains taxes on the appreciation while qualifying for a charitable income tax deduction. It’s a tax-efficient way to turn investments into meaningful community impact.
Donor Advised Funds (DAFs)
A donor advised fund at ACF allows you to make a charitable contribution, potentially receive an immediate tax deduction, and recommend grants to your favorite nonprofits over time. It’s a flexible and convenient way to organize your giving while supporting the causes you care about.
Give a Portion, Sell a Portion
Planning to sell an appreciated asset? Donating a portion to charity before the sale may help reduce capital gains taxes while allowing you to retain proceeds from the remaining portion. This strategy requires advance planning and coordination with your professional advisors.
Let’s Make Your Giving Count
At Aspen Community Foundation, we’re here to help you explore charitable giving strategies that align with your financial goals and philanthropic interests. Whether you’re planning a year-end gift or considering your lasting legacy, we welcome the opportunity to work with you and your professional advisors to make your generosity go further.
Contact us to explore your giving options and make a lasting difference in the Aspen to Parachute region.
Please consult your tax, legal, or financial advisor to determine which charitable giving strategies are appropriate for your circumstances. Tax benefits depend on individual circumstances and applicable law.
