Giving with Purpose: How Charitable Donations Can Strengthen Your Tax Plan

As the year winds down, many of us reflect on what truly matters; family, community, and the

causes close to our hearts. It’s a season that reminds us how generosity can create ripple effects

of good. But charitable giving is more than writing a check in December. With thoughtful financial

planning, you can give intentionally and strengthen your tax strategy at the same time.

At Financial Life Advisors, located in San Antonio, Texas, we believe in purposeful, proactive

planning, the kind that aligns generosity with strategy. This season of giving offers opportunities to

create impact, optimize your financial efficiency, and live your values. Our goal is to help you give

with heart and plan with purpose.

1. The Connection Between Generosity and Financial Planning

Your charitable giving says a lot about who you are and what you value. But when woven into a

personalized financial plan, it can also become a powerful tool for long-term wealth management

and tax efficiency.

Incorporating charitable donations into your retirement planning, investment management, or

estate planning can:

- Reduce taxable income through deductions or qualified distributions

-Reduction of capital gains on appreciated assets

- Support legacy and philanthropic goals

- Strengthen the connection between your finances and your values

We help clients look beyond short-term transactions to build strategies that serve both purpose

and progress, ensuring your giving works for you, your family, and the causes you care about.

2. Giving Strategies that Combine Heart and Financial Efficiency

There’s no one-size-fits-all approach to giving. The right strategy depends on your unique goals,

income, and stage of life. Here are a few of the most effective ways to align generosity with smart

tax strategies.

Direct Donations or Appreciated Assets

The simplest way to give is through direct contributions to qualified charities. However, donating

appreciated assets such as stocks or mutual funds can be even more tax-efficient.

By transferring the asset directly, you may avoid capital gains tax and deduct the fair market value

of the donation, a double advantage that benefits both you and the organization.

Donor-Advised Funds (DAFs)

A donor-advised fund allows you to make a charitable contribution, receive an immediate tax

deduction, and then recommend grants to charities over time.

DAFs are ideal for individuals or families who want to make a large contribution in a high-income

year while distributing funds strategically in the future. It is a flexible option that blends generosity

with thoughtful financial management.

Qualified Charitable Distributions (QCDs)

For those aged 70½ or older, a qualified charitable distribution enables you to donate directly from

your IRA to a charity — up to $108.00 in 2025 and $111,000 in 2026.

A QCD counts toward your required minimum distribution (RMD) but is excluded from taxable

income, offering a significant benefit for retirees focused on retirement planning and tax efficiency.

3. Timing and Coordination Matter

Charitable giving is most effective when it’s integrated into your broader financial strategy.

Here are a few planning ideas to maximize both impact and efficiency:

- Bundle charitable contributions to exceed the standard deduction and itemize effectively.

- Coordinate with your CPA and financial advisor to align charitable gifts with capital gains or Roth

conversions.

- Track and document donations carefully to ensure proper credit at tax time.

At Financial Life Advisors, our fee-only financial advisors work collaboratively with your tax and

estate professionals to design charitable giving strategies that fit seamlessly within your overall

plan.

4. Giving Beyond the Numbers

While the financial benefits are meaningful, the heart of charitable giving is the joy of impact.

Thoughtful giving strengthens communities, builds legacies, and reflects the life you want to live.

As your financial advisor, we see generosity as an integral part of a healthy financial life — one that

balances practical outcomes with personal fulfillment.

Our role is to help you align generosity with financial confidence, so you can make decisions that

feel good today and stand strong tomorrow. Your plan should do more than grow wealth; it should

express your values and make life more meaningful.

5. Let’s Plan with Purpose

The season of giving is an invitation — to reflect, plan, and act intentionally. Whether you’re

exploring donor-advised funds, setting up a QCD, or reviewing your year-end investment

management and tax strategies, this is the perfect time to ensure your giving aligns with both your

heart and your financial goals.

At Financial Life Advisors, we are more than wealth managers — we are life navigators and

purposeful planners, here to help you make every decision count.

Give with heart. Plan with purpose.

Ready to Create a Charitable Giving Plan?

Schedule a financial consultation today to explore how charitable giving can strengthen your tax

strategy, enhance your retirement plan, and reflect what matters most to you.

Visit www.fladvisors.com to connect with a fee-only financial advisor and start planning your next

chapter of purposeful giving.

Investment Advisory and Financial Planning Services offered through Financial Life Advisors, LLC.