NEWSLETTER
Xerxes Nabong, CFP®, CDFA®
Philip M. Maliniak, CRPC®
Nicole Brown-Griffin, CFP®, CDFA®, EA
Aaron Petty, Client Associate
Hampton Roads: (757) 394-3486
Greater Phoenix: (480) 687-9339
Orange County: (949) 660-8869
Wealth Avenue November 2025 Newsletter — ‘Tis the Season for Giving and Smart Tax Planning
As we enter November, many of us reflect on what we’re grateful for — family, health, community, and opportunity. The holiday season is also the season of giving. And whether your motivation is philanthropic, tax-efficiency, or both, there are excellent strategies to support the causes you care about while strengthening your overall financial plan.
Below are ways to give thoughtfully and potentially reduce your tax burden before year-end.
Giving Cash or Appreciated Assets
Most people are familiar with gifting cash to charity. However, gifting appreciated securities (stocks, mutual funds, ETFs) can be even more powerful.
Benefits of donating appreciated securities
- Avoid capital gains tax on the appreciated value
- Receive a charitable deduction for the fair market value (if itemized)
- Support your charity with more dollars than gifting after-tax cash
Example: If you own a stock that grew from $5,000 → $15,000, donating it directly could avoid tax on the $10,000 gain and allow a $15,000 deduction (subject to AGI limits).
Donor-Advised Funds (DAFs): Flexible and Tax Efficient
A donor-advised fund allows you to contribute assets now, take the deduction this year, and direct gifts to charities over time.
How DAFs work
- Contribute cash or securities to your DAF
- Receive an immediate charitable deduction
- Invest the assets inside the DAF for potential growth
- Grant funds to charities at your pace
Why DAFs are appealing
- Lump deductions in high-income years
- Donate anonymously if desired
- Invest contributions for potential tax-free growth
- Create a legacy of family giving
- Low administrative burden compared to private foundations
DAFs are especially useful when:
- You had a high-income year (bonus, sale of stock or business)
- You want to gift long-term but want the deduction now
- You want a simple alternative to managing multiple charitable gifts
Qualified Charitable Distributions (QCDs) — For Those 70½+
If you’re age 70½ or older, you can donate up to $108,000 in 2025 directly from your IRA to a charity. This is called a Qualified Charitable Distribution (QCD).
Why QCDs are powerful
- Counts toward your Required Minimum Distribution (RMD)
- Not included as taxable income
- Helps manage Medicare IRMAA brackets
- Does not require itemizing deductions
For anyone charitably inclined, QCDs are often the most tax-efficient way to give.
Note: QCDs cannot be made to donor-advised funds.
State-Level Tax Credits
Depending on your state, certain charitable programs offer state tax credits, reducing taxes dollar-for-dollar rather than simply providing a deduction.
Examples include:
- Education scholarships
- Foster care or childcare programs
- Conservation/environmental projects
These credits can significantly reduce tax liability and can sometimes be combined with federal charitable deductions. Availability varies by state. Ask us if this applies to you.
Charitable Bunching Strategies
Because the standard deduction is relatively high, some households don’t receive tax benefit from itemizing charitable donations every year.
Solution: “Bunch” multiple years of charitable gifts into one tax year to exceed standard deduction levels, then take standard deduction in future years.
DAFs are an ideal tool to execute this strategy.
Non-Financial Giving Still Matters
Not all generosity is measured by dollar value. Giving time, skills, mentorship, clothing, or household goods can make a real difference.
While non-cash item donations may be deductible, their value goes beyond tax benefit, they strengthen communities.
How Much Should You Give?
Giving is personal. Some set a percentage of income (e.g., 3–10%) while others give based on impact. The (e.g., 3–10%) while others give based on impact. The right amount is the one aligned with your values, goals, and financial plan.
We’re here to help you:
- Understand tax implications
- Identify the most efficient giving vehicles
- Coordinate with your CPA
- Support the causes that matter most to you
Let’s Make a Plan
As we approach year-end, now is an ideal time to review charitable strategies, especially if:
- You expect a high-income year
- You have appreciated securities
- You’re 70½+ and subject to RMDs
- You want to build a family-giving legacy
- You want to support specific charities long-term
If you’d like help evaluating donor-advised funds, QCDs, or other gifting approaches, reach out, we’re happy to guide you. Wishing you and your family a meaningful and joyful holiday season.
Your Team at Wealth Avenue,
P.S. Speaking of giving and gratitude, we want to express our heartfelt appreciation for all the client referrals and introductions you shared with us this year. Thanks to you, we’ve continued to grow, and we are truly honored and thankful for the trust you’ve placed in us.
As we look ahead to 2026, many people will begin the year with fresh financial goals. If you know someone seeking guidance, whether they’re approaching retirement, navigating new tax laws, or simply looking to get organized, we are grateful for the opportunity to support them and happy to welcome new referrals.
And lastly, here’s a recent Wall Street Journal article highlighting a key provision in the new “mega-bill” that expands charitable tax advantages for seniors. The legislation enhances opportunities for taxefficient giving, particularly for those using Qualified Charitable Distributions (QCDs). It’s a timely reminder that strategic gifting can be both impactful and financially smart. Enjoy the additional read.
We want to know… what are your top three favorite charities?
