Maximizing Your Holiday Giving: Expert Tips from BNA CPAs

Giving back is meaningful—and with the right strategy, it can also support your long-term financial plan. Here are quick, impactful tips from our CPAs to help you maximize your charitable giving and reduce taxable income this year.

1. Maximize Deductions While You Still Can

Shared by Ashley Taylor, CPA

2025 is a key year for charitable planning. If you itemize, maximize your gifts under current rules. Starting in 2026, all taxpayers can deduct:

$1,000 (individuals) or $2,000 (married couples) in cash donations—even without itemizing.

Keep in mind for businesses, charitable contributions can double as a powerful marketing tool — boosting visibility, goodwill, and community recognition while still offering tax benefits.

2. Use Qualified Charitable Distributions (QCDs)

Shared by Meagan DenOuden, CPA, CFP®, MBA

For those age 70½+ with Required Minimum Distributions (RMDs), a QCD is one of the most tax-efficient ways to give. The donation goes directly from your IRA to a qualified 501(c)(3).

By making the donation directly from the IRA to the charity, clients get an above-the-line deduction, which is more beneficial than claiming it as an itemized deduction.

Why QCDs Matter

Reduces taxable income
Counts toward RMDs
No need to itemize
Avoids taxes on the distribution

QCD Rules at a Glance

Must be 70½ or older
Sent directly from IRA to charity
Up to $100,000 per person/year
Not allowed for donor-advised funds or private foundations

3. Consider a Donor-Advised Fund (DAF)

Shared by Meaghan Hall, CPA

A DAF is ideal if you’re charitably inclined and experiencing a higher-income year. You can take a large, upfront tax deduction now and distribute the funds to charities over time.

This strategy can help you maximize tax savings, smooth out charitable giving, and support causes you care about at your own pace.A DAF lets you front-load multiple years of donations while keeping flexibility.

4. Use 529 Plans for Tax-Efficient Giving to Loved Ones

Shared by Melanie Williams, ATP, Accountant

Contributing to a 529 education savings plan is an effective way to support family members while also reducing state taxable income. Many states offer deductions or credits for contributions, and qualified withdrawals grow tax-free.Timing varies by state—some require contributions by year-end, while others allow contributions up to the tax filing deadline. South Carolina’s Future Scholar 529 is “generous”:

SC allows the full contribution as a state tax deduction (unlike states that limit or deny deductions—“we see you, NC”).
Contributions made Jan 1–Apr 15, 2026 can apply to either 2025 or 2026, offering tax-planning flexibility.

A 529 plan option to make a five-year averaging election can be strategic in a high-income year. There are gift tax laws to consider if you exceed your personal annual gift exclusion, so be sure to share your contribution plans with your BNA tax advisor during a year end planning meeting.

5. Plan Ahead for New 2026 Charitable Deduction Limits

Shared by Melanie Williams, ATP, Accountant

Beginning in 2026, new rules will limit how much individuals and corporations can deduct for charitable contributions:

Individuals who itemize will face a 0.5% AGI floor before any charitable deductions become eligible.
Corporations will face a 1.0% taxable income floor.
For individuals in the 37% tax bracket, all itemized deductions (including charitable contributions) will be subject to a new 35% deduction cap.

These future limitations give taxpayers a strategic opportunity to front-load (or ‘bunch’) itemized deductions into the 2025 tax year before the new floor and ceiling take effect. Contact your BNA tax advisor for a year end planning meeting and we will help you project your best path forward.

Bottom Line

Thoughtful charitable planning not only strengthens the causes you care about but also creates meaningful financial advantages for you and your family. By leveraging the right strategies before year-end—and preparing for the rule changes ahead—you can give more efficiently and with greater impact.

Your BNA advisors are here to help you navigate these opportunities with confidence.

Contact BNA Today

If you’re a business owner looking for reliable financial guidance, we’re just a call away. Reach out to us at (803) 366-8371 or email us at success@bna.com to see how we can support your goals.