With Thanksgiving and Christmas right around the corner, the season of giving is here! It’s a special time to give back to your community in meaningful ways. With a little planning, you can make your donations go even further without overextending yourself.
Here are five tips to help you make the most of your holiday giving!
1. Give the Gift of Your Time
Volunteering is a wonderful way to give back without opening your wallet. This could mean lending a hand at shelters like:
• Rockford Rescue Mission
• Noah’s Ark Animal Sanctuary
• The Salvation Army
• Or food pantries
Volunteering not only helps others, but it’s also a fulfilling way to give back when a financial donation may not be feasible.
2. Use Your IRA for Tax-Free Giving
If you’re taking Required Minimum Distributions (RMDs) from your IRA, did you know you can donate directly to a charity and skip the tax on that portion? It’s called a Qualified Charitable Distribution (QCD), and it’s a smart way to reduce your taxable income while supporting a good cause. You get the satisfaction of giving, and the charity receives a direct donation.
3. Start a Donor-Advised Fund (DAF)
Setting up a DAF can make your charitable giving easier and more strategic. With a DAF, you can set aside a big donation now, get a tax break this year, and then decide later how to spread those funds to the charities of your choice over time. Think of it like funding a “nest egg” that can help multiple causes over a few years. This option can also keep you organized, and it’s perfect if you want to donate incrementally.
4. Declutter and Donate Gently Used Items
The holidays are a great time for a fresh start, so why not clear out some space while helping others? That old sweater, the extra blender, or those books you’ve read (twice) can make a big difference to someone else. Plus, donating items can often be tax-deductible. It’s a thoughtful way to help families while making room for any new holiday goodies you’ll bring in this year.
5. Plan Your Giving Throughout the Year
We all know how easy it is to feel extra generous around the holidays. By putting a little money aside each month in a “giving fund,” you can ensure you’re able to support the causes you love without stressing your budget. Reviewing your monthly spending also helps you see what’s possible—because being generous doesn’t have to mean overextending yourself! It’s about finding the balance that works for you.
At Anchor Wealth, we’re here to help you manage your budget in a way that aligns with your giving goals. Let’s make this holiday season one of both joy and financial peace, so you can give confidently, now and in the years to come.
By Chris Perry, CFP, Wealth Advisor