Let’s be honest.

Very few people are sitting at their kitchen table writing checks anymore. Most charitable giving today comes straight out of a checking account automatic draft, online donations, recurring monthly gifts. It’s easy, it feels good, and it supports causes we care deeply about.

But just because something is easy doesn’t mean it’s the most efficient way to give.

If you have appreciated investments especially employer stock, you may be unintentionally making generosity harder on yourself than it needs to be.

Why how you give matters

Most people focus on how much they give to charity. That’s important. But how the gift is funded can make a meaningful difference in both taxes and day-to-day cash flow.

When gifts come from income, that money is first earned, taxed, and then donated. For many families, that approach quietly puts pressure on monthly cash flow especially in years when giving is consistent and meaningful.

There may be a more thoughtful way to structure those gifts.

Appreciated stock: an overlooked opportunity

Appreciated stock is simply an investment that is worth more today than when it was acquired. For many people we work with, that includes Walmart stock, particularly shares that vested through Restricted Stock Units over time.

Walmart stock has increased significantly over the past year, and we often see families holding shares with sizable built-in gains. At the same time, charitable donations continue to come directly out of checking accounts.

That mismatch is where opportunity often lives.

A real-world example

We recently met with a client who was donating $12,000 per year to their church and another $4,000 to other local non-profits. The money was coming straight from their checking account each month.

Meanwhile, they held Walmart stock that had vested in 2024 and appreciated meaningfully. Selling those shares would have created a large capital gain. And like many people, they mentioned something that felt familiar:

“We’re starting to feel a little tight on cash at the end of the month.”

By stepping back and looking at the full picture, we identified another way to fund their generosity.

Instead of donating cash, the client donated appreciated Walmart stock directly. The result?

· The church received the full value of the gift

· The client avoided creating additional capital gains

· Monthly cash flow improved by roughly $1,300 per month

Same generosity. Better structure.

Why donating appreciated stock can be so effective

When long-term appreciated stock is donated directly to a qualified charity:

· The charity can typically sell the stock without paying taxes

· The donor may receive a charitable deduction for the full market value, depending on personal circumstances

· The donor avoids realizing capital gains that would have occurred if the stock were sold first

In simple terms, this approach can allow people to give more efficiently while preserving flexibility in their own finances.

Looking for simplicity? Consider a Donor-Advised Fund

For some families, donating directly to multiple charities using stock can feel complicated. That’s where a Donor-Advised Fund can be helpful.

A Donor-Advised Fund allows you to:

· Donate appreciated stock in one transaction

· Receive the charitable deduction in the year of the contribution

· “Bundle” or front-load giving in higher-income years

· Distribute grants to charities over time at your own pace

It can be a clean, simple way to align tax planning with long-term charitable intent.

An important warning before you move forward

This strategy is not right for everyone.

If you donate stock that has only been held for a short period of time generally less than one year the tax deduction may be limited to what you originally paid for the stock, not its current value.

That’s why it matters where the stock came from, when it vested, and how long it has been held. Shares from long-held Restricted Stock Units often work well. Other situations may not.

Details matter here, and assumptions can be costly.

This isn’t about giving less

To be clear, this is not about telling people to stop giving to charity. It is also not about giving more but instead maximizing the amount that you are already donating.

It’s about being intentional.

For many families, donating appreciated investments instead of income can:

· Support causes they care deeply about

· Reduce unnecessary tax friction

· Create breathing room in monthly cash flow

Final thought

If you are charitably inclined and hold appreciated stock funding gifts from your checking account may not be your most thoughtful option.

We are not telling you to stop giving. We are encouraging you to give in a more tax-efficient manner.

Before making any changes, review your situation with a financial advisor and tax professional. If you have questions about whether donating appreciated stock or using a Donor-Advised Fund could fit into your charitable plan, please reach out to our team. We are always happy to help.

Households that have made charitable giving a central part of their financial strategy will want to take notice of a significant change taking effect next year. The One Big Beautiful Bill Act (OBBBA), signed into law on July 4, 2025, introduces new limits on the deductibility of charitable contributions—rules that could reduce the tax benefits for many individuals who itemize. With year-end planning underway, now is the time to reassess your giving strategy under this new landscape.

What’s Changing for Households that Itemize

Beginning in 2026, charitable contributions will only be deductible to the extent they exceed 0.5% of a taxpayer’s adjusted gross income (AGI). This floor applies across all types of contributions, regardless of whether the gift is in cash, appreciated securities, or other property.

Example Household

Consider a household receiving $55,000 in Social Security benefits, a $65,000 pension, and $70,000 in IRA distributions—resulting in a total AGI of $190,000. This household gives $30,000 each year to charity and regularly itemizes deductions.

Under the new law, the first 0.5% of AGI—$950 in this example—is not deductible. This means their deductible charitable amount drops from $30,000 to $29,050. While the impact may seem small in absolute terms, over many years this change reduces the overall tax efficiency of sustained giving.

Why 2025 May Be a Critical Year for Strategic Giving

For households using donor advised funds (DAFs), 2025 presents a key planning opportunity. The current rules still allow full deductibility of charitable contributions (up to the existing AGI limits) without the 0.5% floor. At the same time, individuals over age 65 benefit from an increased standard deduction and, in some states, enhanced state and local tax (SALT) benefits.

This creates a window to bundle multiple years of giving into 2025. By doing so, households can exceed the deduction threshold this year, make a sizable contribution to a DAF, and still take the standard deduction in 2026—a year in which no new charitable giving would be needed.

Additionally, those holding appreciated assets—such as stock or mutual funds—can donate those positions to a DAF and avoid capital gains tax while preserving the full deduction value under 2025’s more favorable rules.

Next Steps: Reassess Your Giving Plan Before Year-End

With the One Big Beautiful Bill Act taking effect in 2026, this year offers a final opportunity to give under more favorable deduction rules. For households who give regularly—or are considering significant contributions—now is the time to review your strategy.

Before December 31, 2025, meet with your financial advisor and tax professional to determine whether making a charitable contribution this year aligns with your broader financial and tax goals. A well-timed gift, especially when using tools like donor advised funds or appreciated assets, could offer meaningful tax savings while supporting the causes you care about most.