Holiday Giving Guide: Stock Donations, DAFs, and Other Smart Ways to Give

Beyond Cash: Smart Ways to Give This Holiday Season

When most people think about charitable giving, they imagine writing a check or entering a credit card number. But for many donors, alternative giving methods can provide significant advantages—potentially allowing you to give more while receiving greater tax benefits.

This holiday giving guide explores smart donation strategies that can maximize your charitable impact.

Disclaimer: This article is for informational purposes only and does not constitute tax or financial advice. Please consult with qualified professionals for guidance specific to your situation.

Stock and Securities Donations

Why donate stock?

Donating appreciated securities is one of the most tax-efficient ways to support charities you love.

The double benefit:

Avoid capital gains tax on the appreciation
Receive a fair market value deduction for the full amount

Example:

| Method | Sell Stock & Donate Cash | Donate Stock Directly |

|--------|-------------------------|----------------------|

| Original purchase | $5,000 | $5,000 |

| Current value | $20,000 | $20,000 |

| Capital gains | $15,000 | $15,000 |

| Capital gains tax (20%) | $3,000 | $0 |

| Amount to charity | $17,000 | $20,000 |

| Your tax deduction | $17,000 | $20,000 |

By donating directly, you give $3,000 more to charity and receive a $3,000 larger deduction.

How to donate stock:

Contact The Chahal Foundation for brokerage details
Initiate a transfer from your brokerage account
Allow 5-10 business days for processing
We provide acknowledgment for your tax records

Important notes:

Securities must be held more than one year for full benefit
Deduction limited to 30% of AGI (excess carries forward 5 years)
Works with individual stocks, mutual funds, ETFs, and bonds

Donor-Advised Funds (DAFs)

What is a DAF?

A donor-advised fund is like a charitable checking account. You contribute to the fund, receive an immediate tax deduction, and then recommend grants to charities over time.

Benefits:

Immediate deduction when you contribute
Flexible grantmaking over months or years
Investment growth in the fund is tax-free
Simplified record-keeping for multiple donations
Privacy option for anonymous giving
Family philanthropy tool for involving children

Strategic uses:

Donation bunching: Contribute multiple years' worth of giving in one year to exceed the standard deduction threshold
Windfall planning: When receiving a bonus, stock vesting, or business sale
Year-end simplicity: Make one contribution for tax purposes, grants throughout the year

Popular DAF providers:

Fidelity Charitable
Schwab Charitable
Vanguard Charitable
Community foundations

How to grant from your DAF:

Search for "The Chahal Foundation" in your DAF provider's charity database, or grant directly using our EIN. Most grants process within 2-4 weeks.

IRA Charitable Rollover (QCDs)

For donors 70½ and older:

Qualified Charitable Distributions allow you to donate directly from your IRA to charity, excluding the amount from taxable income.

Key benefits:

Up to $105,000 per year (2025 limit)
Counts toward Required Minimum Distributions
Reduces taxable income (important for Medicare premiums, Social Security taxation)
Works even if you take the standard deduction

How to execute a QCD:

Contact your IRA custodian
Request a direct distribution to The Chahal Foundation
The check must be payable to the charity, not you
Process takes 2-3 weeks; start by mid-December for year-end giving

Employer Matching Programs

The simplest way to double your impact:

Many employers match employee charitable contributions—yet billions in matching funds go unclaimed annually.

How to check:

Contact your HR or benefits department
Search your company name at Double the Donation
Review your employee benefits portal

Types of matching:

Dollar-for-dollar: Company matches 100% of your gift
Partial match: Company matches 50% or other percentage
Volunteer grants: Company donates based on hours you volunteer
Retiree matching: Some companies continue matching for retirees

Deadline alert: Many companies have matching deadlines earlier than December 31. Check now to ensure your 2025 donations get matched.

Planned Giving: Creating a Legacy

Options for including charity in your estate: Charitable bequests:

Name The Chahal Foundation as a beneficiary in your will for a specific amount, percentage, or remainder after other distributions.

Beneficiary designations:

Name charity as beneficiary of retirement accounts (IRA, 401(k), 403(b)) or life insurance policies—potentially reducing estate taxes significantly.

Charitable trusts:

Charitable Remainder Trust (CRT): Provides income to you or beneficiaries, with remainder to charity
Charitable Lead Trust (CLT): Provides income to charity, with remainder to heirs

Benefits of planned giving:

Create significant impact beyond your lifetime
Reduce estate taxes
Provide for family while supporting causes you love
Join our Legacy Circle for special recognition

Gifts of Real Estate

Donating property can be highly advantageous:

Avoid capital gains on appreciated property
Receive deduction for fair market value
Eliminate hassle and costs of selling
Works for primary residences, vacation homes, or investment property

Process:

Property appraisal by qualified appraiser
Review by foundation's development team
Transfer of deed
Tax acknowledgment provided

Corporate and Business Giving

Options for business owners: Corporate charitable contributions:

C-corporations: Deduct up to 10% of taxable income
Pass-through entities: Deduction passes to individual owners

In-kind donations:

Donate products, services, or inventory for fair market value deduction (with limitations).

Sponsorships:

Support events or programs with visibility benefits for your business.

Matching gift programs:

Establish a matching program to engage employees in philanthropy.

How to Get Started

Ready to explore smart giving options?

Our development team can help you:

Set up stock transfers
Process DAF grants
Verify matching gift eligibility
Discuss planned giving options
Coordinate gifts of real estate or other assets

Contact us:

This Holiday Season

Your generosity changes lives. By choosing smart giving strategies, you can maximize the impact of every dollar—supporting education, fighting hunger, protecting children, and responding to emergencies around the world.

Whatever giving method works best for your situation, know that your support makes a real difference in the lives of those we serve.

Explore all giving options →