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If you’re searching for charitable giving strategies in 2025, you’re not alone. More donors are asking:
The landscape of charitable giving is evolving, and 2025 offers powerful planning opportunities. Whether your goal is to support local nonprofits, reduce taxes, or build a long-term charitable plan, several strategies work exceptionally well.
Below are three of the best ways to give in 2025 that can increase your financial efficiency and your impact.
When most people think of charitable giving, they think of cash donations. Giving cash to charity remains the most widely used approach because it’s easy, flexible, and provides an immediate benefit.
If you want a quick, uncomplicated way to support charities, cash giving is still a strong option.
One of the most underutilized charitable strategies is donating appreciated stock directly to a charity. If you’ve been searching for how to donate stock to charity or how to avoid capital gains tax, this strategy is a game-changer.
If you own investments that have increased in value, you can:
We are currently working with several clients who are doing exactly this. They have meaningful charitable goals and hold appreciated stock in their brokerage accounts at Fyooz Financial Planning. Here’s our process:
Step 1: Gather details from the client
We ask clients to provide:
Step 2: Identify the most tax-efficient shares
We review the investment holdings to determine which shares have the highest appreciation. This helps maximize the tax benefit while keeping the overall investment portfolio appropriately balanced.
Step 3: Transfer the shares directly
We submit the request through our custodian, Charles Schwab, and the shares are transferred directly to the charity. No sale is required by the client, and the nonprofit receives the full value.
Consider a client who owns a stock currently worth $30,000, originally purchased for $12,000. The built-in gain is $18,000.
If the client donates the stock directly:
If instead they sold the stock and donated cash:
This strategy can stretch your charitable dollars dramatically, especially in high-growth years.
If you have appreciated securities, donating stock may be the most tax-efficient charitable giving strategy in 2025.
A Donor Advised Fund (DAF) has become one of the most popular tools for strategic charitable giving in 2025. Many donors are searching “What is a donor-advised fund?” because it offers the best combination of tax benefits and flexibility.
You contribute assets like cash, stock, bonuses, into your DAF.
Then you can:
You can also fund a DAF with the same strategic planning as stated above (2. Donate Appreciated Stock: A Major Tax Win in 2025), transferring highly appreciated stock into the DAF where the liquidation in the DAF will avoid capital gains!
Yes, tax strategies matter. But charitable giving in 2025 is deeply personal.
Before writing a check or opening a DAF, ask:
Whether your gift is large or small, cash or stock, planned or spontaneous — what matters is this: you are making a difference.
There’s no perfect formula, no “right” amount to give. The key is simply to start giving with intention.
In 2025, the most effective charitable giving strategies are:
Each strategy can help you maximize your impact, reduce taxes, and support the causes you care about most.
If you’re thinking about charitable giving this year, now is the perfect time to create a plan with Fyooz Financial Planning.
Fyooz Financial Planning is a fee-only, fiduciary financial planner based in Minneapolis, MN and Portland, OR, dedicated to helping couples achieve their financial goals. Whether you're planning for retirement, managing investments, or looking for tax-efficient strategies, our experienced team provides personalized guidance.
Disclaimer: This article is for informational purposes only and is not a recommendation of Fyooz Financial Planning, Natalie Slagle CFP®, or Daniel Slagle CFP®. Past performance may not be indicative of future results and may have been impacted by events and economic conditions that will not prevail in the future. Therefore, it should not be assumed that future performance of any specific security, investment product or investment strategy referenced in the article, either directly or indirectly, will be profitable or equal to the corresponding indicated performance level(s). No portion of the article shall be construed as a solicitation to buy or sell any specific security or investment product or to engage in any particular investment or financial planning strategy. Any reference to a market index is included for illustrative purposes only, as it is not possible to directly invest in an index. Indices are unmanaged, hypothetical vehicles that serve as market indicators and do not account for the deduction of management fees or transaction costs generally associated with investable products, which otherwise have the effect of reducing the performance of an actual investment portfolio.
