The approaching end of the year marks the start of “giving season,” the period between Giving Tuesday (the Tuesday after Thanksgiving) and New Year’s Eve.
This stretch coincides with year-end holidays and tax planning and is accompanied by an increased focus on charitable activities.
During this time, nonprofits are ramping up requests with annual appeals and year-end campaigns, while donors are making charitable giving part of their annual holiday traditions and tax strategies.
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Each year brings unique conditions that impact giving approaches. This year, the passage of the One Big Beautiful Bill (OBBB) and interest rate cuts drove many of the conversations donors had with their advisers as they planned their year-end giving and tax impacts.
In the wake of the legislation, many donors are now seeking to front-load contributions this year before tax changes take effect in 2026, including the new 0.5% floor on charitable contributions for taxpayers who itemize.
Considerations like these are part of smart philanthropic giving and tax planning. Yet, as year-end approaches, it’s important to think beyond giving season when it comes to charitable giving and its implications, for donors’ financial portfolios and for the nonprofits receiving funds.
Year-end giving for year-round impact
Charities understand — and often drive — the push for year-end giving, particularly in late November and throughout December.
In fact, nearly one-third of annual giving occurs in December, with 10% taking place in the last three days of the year.
But budgeting for expected giving only goes so far, and nonprofits need support throughout the year.
What’s more, many charities support causes and engage in work that is, by definition, unpredictable. Occurrences from natural disasters to shifting regulations can create a significant and unexpected need for support outside of the traditional giving period.
Many donors want the opportunity to support these needs and unexpected giving opportunities. Often, this unexpected giving is in addition to gifts planned throughout the year.
The good news is that donors can leverage several tools to help sustain the work of the nonprofits and causes they support throughout the year.
Here’s a closer look at some of the ways donors can increase the impact of their donations all year long while still achieving the tax benefits of year-end giving.
Separate contributions and grantmaking
One of the most effective ways to combine year-end giving with year-round impact is leveraging the right giving tools.
A donor-advised fund (DAF) is one such tool that allows investors to contribute when it makes the most sense for their portfolios while ensuring their contributions can be used to support charities throughout the year.
When contributing to a DAF, individuals receive an immediate deduction and can recommend grants to nonprofits at any time.
In the context of year-end tax planning, these contributions are a vital mechanism that can lower taxable income and, in many cases, reduce overall tax liability when a donor’s full financial picture for the year comes into view.
Additional contributions and grantmaking recommendations can happen when they make the most sense, and funds in a DAF — which are earmarked for charity — can be invested and grow tax-free over time.
This growth, combined with traditionally lower fees and the power to separate gifting and granting, means donors can significantly increase their charitable impact with the right DAF partner.
Prioritize recurring giving
Like any business, nonprofits crave stability and predictability when it comes to resources and financial commitments. Recurring grants are a crucial way that donors can support a nonprofit year-round and provide that predictability of funding.
In fact, 3 in 4 charities prefer repeated gifts over a one-time gift for the same amount, according to Vanguard Charitable’s recent Why Giving Matters report.
At the same time, donors who utilize recurring grants tend to give more over time.
Over a five-year period, a typical recurring donor’s most recent grant will be 40% greater than their first, and the total recurring grant amount will increase by 8% each year on average, the report shows.
Recurring grants help close the gap for year-round impact and provide stability when traditional fundraising efforts tend to slow.
Tap into recoverable grants
Recoverable grants offer another way for donors to support nonprofits as needs and resources fluctuate.
Recoverable grants provide grantees with the immediate, flexible and high-impact backing they need, when they need it.
It’s different from a traditional grant in that the funds may be recovered (sometimes even beyond the initial granted capital) by the DAF and used to recommend additional grants to other nonprofits.
A recoverable grant can be a powerful year-round giving tool that allows nonprofits to navigate funding gaps or capitalize on unique opportunities to expand or scale their impact.
Give without restrictions
Giving with few limitations on how the funds will be used is another way to empower nonprofits to maximize their impact outside of giving season.
Nonprofits consistently identify unrestricted giving as a top priority in helping to alleviate more pressing needs. This approach enables organizations to allocate funding where it’s most needed to help fulfill their mission, which can include channeling donations directly to programming, hiring, fundraising events and more.
Each of these gifting strategies reflects a vote of confidence in the nonprofit’s long-term vision and its ability to reach its goals.
With the right approach, donors can achieve the tax benefits associated with their charitable giving while ensuring maximum philanthropic impact throughout the year and beyond.
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This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.
