As 2025 approaches, smart taxpayers are looking for ways to maximize their tax savings, and one of the most satisfying ways to do this is through strategic charitable giving. Before the year ends, ensuring your donations align with the best tax practices can significantly lower your taxable income and support the causes close to your heart. Here are 7 tax-smart tips for charitable giving that you should consider before 2025 comes to a close.1. Understand ItemizationStarting with the most straightforward, understanding whether to itemize your deductions is crucial. The Tax Cuts and Jobs Act increased the standard deduction, making itemizing less beneficial for many taxpayers. However, if your charitable contributions along with other deductible expenses exceed your standard deduction, itemizing could net greater tax savings.  2. Bunching DonationsConsider the strategy of 'bunching' multiple years worth of donations into one tax year. This could push your deductions above the standard deduction limit, making it possible to itemize and maximize your tax benefits. Review your financial situation with a tax professional to see if this method can work for you.  3. Donating Appreciated AssetsDonating stocks or other assets that have appreciated in value (and that you have held for more than a year) can be significantly more tax-efficient than giving cash. Not only can you deduct the full market value of the asset (subject to certain limits), but you also avoid paying capital gains tax that would otherwise arise from selling the asset.  4. IRA Charitable RolloverIf you are aged 70 years or older, consider taking advantage of an IRA charitable rollover. This move allows you to transfer up to $100,000 directly to a qualifying charity without the distribution being added to your taxable income, which can be particularly useful if you are required to take minimum distributions but do not need the additional income.  5. Use Donor-Advised Funds (DAFs)Donor-advised funds can be an excellent way to gain an immediate tax deduction while spreading the distribution of funds to your chosen charities over time. Contributions to a DAF are deductible in the year they are made, allowing you to make a substantial donation in one year to maximize the tax benefit and recommend grants in subsequent years.  6. Explore Charitable TrustsConsider setting up a charitable remainder trust (CRT) or a charitable lead trust (CLT). These sophisticated giving strategies can provide tax benefits and a steady income stream, depending on the structure chosen. A CRT provides income to the donor, with the remainder going to charity, while a CLT provides income to the charity with the remainder going to beneficiaries.  7. Keep Impeccable RecordsNo matter which method of donation you choose, maintaining thorough records is critical. Ensure you keep receipts and written acknowledgements from charities for donations over $250. In cases of non-cash donations like goods or stocks, more detailed records, including how the values were determined, are necessary.   As you explore your charitable giving options, remember that integrating your philanthropic goals with smart tax planning can lead to substantial tax benefits. The strategic giving blueprint is an approach that includes the use of non-profits, such as private foundations and donor-advised funds, to maximize your giving and tax advantages. By leveraging these vehicles, you can significantly enhance how much you give and save.Want to Save Money on Taxes? Don't miss out on a chance to keep more of what you earn! At Together CFO, we focus on smart tax strategies that last Structures Over Loopholes. Schedule a call with us today to find out how we can help you pay less in taxes. It's simple and free to get started. Click here to book your consultation now!Learn More About Together CFO