Smart giving doesn’t just feel good – it can make serious tax sense, too. Yet every year, millions of Americans leave money on the table simply because they’re unaware of the most effective tax strategies for charitable giving. Whether you’re donating $50 or $50,000, how you give matters just as much as how much you give.

By understanding key tax planning strategies, you can give more intentionally, increase your impact, and reduce your taxable income at the same time.

That’s where GoFundMe Giving Funds come in. They’re modern donor-advised funds (DAFs) built for givers who want to stay organized, give with purpose, and enjoy the benefits of one consolidated tax receipt.

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1. Bunch your donations to maximize deductions

If your annual charitable giving isn’t enough to surpass the standard deduction – $14,600 for individuals or $29,200 for married couples filing jointly – you might not get a tax benefit for your generosity.

One of the most effective tax saving strategies is called bunching. This means grouping multiple years’ worth of donations into a single tax year, allowing you to itemize deductions and claim a larger tax break.

Example:

Instead of donating $10,000 every year, consider donating $20,000 every other year. That might allow you to exceed the standard deduction for donation years and write off more of your giving.

2. Use a donor-advised fund to plan ahead

A donor-advised fund (DAF) is a smart giving account that allows you to contribute now (and get an immediate tax deduction), while deciding where to give later.

With  donor-advised funds, you can:

• Set aside funds for giving and invest them tax-free
• Track your donations and receive one simple tax receipt
• Reduce decision fatigue by planning giving in advance

If you’re exploring tax planning strategies, a DAF like this lets you respond quickly to crises or support seasonal campaigns without scrambling at year-end.

To learn more about the benefits of DAFs, check out our guide.

3. Donate appreciated assets, not just cash

Want to give more without spending more? Consider donating appreciated assets, like stocks, mutual funds, or even crypto.

This is one of the most underused tax saving strategies, even though it can deliver significant benefits:

• Avoid paying capital gains tax on the asset’s appreciation
• Get a deduction for the full fair market value (if held for more than one year)
• Increase the total amount going to causes you care about

Example:

You bought stock at $1,000 and two years later it’s worth $5,000. If you sell it, you’d pay tax on the $4,000 gain. But if you donate it to charity, you avoid the tax and can potentially deduct the full $5,000.

4. Take advantage of the IRA charitable rollover (QCD)

According to the IRS, if you’re 70½ or older, you can donate up to $100,000 per year directly from your IRA to a qualified charity. This is called a qualified charitable distribution (QCD), and it counts toward your required minimum distribution (RMD) without being included in your taxable income.

This is an especially powerful tax strategy for retirees who don’t need all of their IRA withdrawals and want to reduce their taxable income.

Note: DAFs (including GoFundMe Giving Funds) aren’t eligible for QCDs per IRS rules, but you can still make QCDs directly to charities you care about.

5. Know when to itemize vs. take the standard deduction

Many taxpayers default to the standard deduction, but if you’ve had high medical expenses, a large mortgage, or significant charitable contributions, it might be worth itemizing.

Itemizing allows you to deduct specific expenses that exceed the standard deduction, potentially lowering your taxable income. Reviewing your financial records and consulting a tax professional can help determine which approach offers the greatest benefit.

6. Give before December 31

To count your charitable donation for this tax year, you need to give by December 31 – no exceptions.

Rather than rushing to make decisions in December, you can open a GoFundMe Giving Fund early and contribute throughout the year. That way, you’re not only spreading out your giving, you’re also giving yourself peace of mind knowing you’re covered come tax season.

7. Invest your Giving Fund to potentially grow your impact

One of the most powerful, long-term tax strategies is to invest your DAF funds. Why? Because investments have the potential to grow tax-free and can be used for future charitable giving.

Example:

Contributing $5,000 to your GoFundMe Giving Fund and investing it at a 6% annual return could grow to over $6,600 in five years, without any tax on the growth.

This example is to help show how an investment might grow over time. Keep in mind, though, that investments can go up or down, and there’s always a risk of losing money. 

You’re not just donating. You’re building a future for the causes you care about.

8. Track all your giving in one place

One major challenge with year-end tax filing? Tracking down donation receipts from different nonprofits, months after the fact.

A GoFundMe Giving Fund simplifies this by providing a single tax receipt and a full giving history – easily accessible on the platform – for all your donations, whether to nonprofits, schools, or other IRS-qualified public charities .

That’s not just convenience – it’s a smart tax planning strategy that can save you time, money, and headaches during tax season​.

9. Be strategic with end-of-year bonuses or windfalls

Got a bonus, stock vesting, or a tax refund? It’s tempting to spend it, but it’s also a great moment to give.

Allocating even a portion of that windfall to your Giving Fund lets you reduce your taxable income while supporting causes close to your heart.

Give with heart, but also with strategy

The most impactful giving comes from the heart, but it’s even more powerful when it’s backed by thoughtful strategy.

By integrating these 10 tax strategies into your giving routine, you can:

• Support more causes
• Save on taxes
• Feel empowered and organized

With GoFundMe Giving Funds, you can do it all from one account, with one tax receipt, and a world of giving possibilities. Discover charities you care about and urgent needs of nonprofits you want to support. Plan ahead. And make your generosity go further.

Ready to get started?

👉 Open your Giving Fund today
👉 Learn more about how donor-advised funds work

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This content is for educational purposes only and does not constitute tax, legal, or investment advice. Any financial or tax-related calculations provided are illustrative examples only and should not be relied upon for making financial decisions.

Laws and regulations regarding donor-advised funds vary, and tax benefits depend on individual circumstances. Readers should consult with a qualified tax, legal, or financial professional for personalized guidance.