The holiday season inspires generosity, but charitable giving involves more than just writing a check. Whether you're in Fayetteville, Southern Pines, or anywhere in North Carolina, understanding your options can help you give more effectively.
Donating Appreciated Securities
If you've held stocks, mutual funds, or other securities for more than a year that have increased in value, you have options for how to make charitable donations beyond cash gifts.
When you donate appreciated securities directly to a charity, you may avoid paying capital gains tax on the growth while still receiving a charitable deduction for the full fair market value. This approach can increase your giving power compared to selling assets first and then donating cash.
Qualified Charitable Distributions (QCDs) and Retirement Accounts
If you're 70½ or older and have a traditional IRA, Qualified Charitable Distributions offer a way to support North Carolina charities while satisfying your Required Minimum Distribution (RMD).
A QCD allows you to transfer up to $108,000 annually (as of 2025) directly from your IRA to a qualified charity. The distribution counts toward your RMD but isn't included in your taxable income, meaning you get the benefit of charitable giving without increasing your adjusted gross income.
This option may be valuable if you don't itemize deductions or if you're concerned about how additional income might affect your Medicare premiums or Social Security taxation.
Bunching Donations
With the standard deduction at $15,000 for individuals and $30,000 for married couples filing jointly in 2025, many North Carolina taxpayers don't have enough itemized deductions to exceed these thresholds in a given year.
Some donors choose to concentrate multiple years' worth of charitable donations into a single tax year to exceed the standard deduction, then take the standard deduction in the following years. This approach may help maximize tax benefits while maintaining charitable giving over time.
Financial Planning and Charitable Giving in Fayetteville and Southern Pines
Charitable giving is deeply personal, and the right approach depends on your financial situation, tax circumstances, and philanthropic goals. Before implementing any of these approaches, consult with your tax professional and financial advisor to align with your overall financial plan.
Contact Good Life Financial Advisors of NC in Fayetteville and Southern Pines today to schedule a complimentary consultation. Our financial advisors can discuss how charitable giving fits into your comprehensive financial and retirement planning.