Does year-end giving really need to happen at the end of the year? That is not a philosophical question (well, not entirely). Why wait until that hectic time between Thanksgiving and New Year’s Eve to execute on a plan that happens annually? This might strike a nerve coming from the Pohlman household, but, waiting until December to do your annual giving and gifting is a bit like waiting until April 14th to do your taxes. Sure, it can be done—but it’s hardly efficient… and it might not be the best timing for your CPA. (Okay, who cares about your CPA, right?!)
All kidding aside, we believe generosity should be strategic, not rushed. So today I’m making the case for a September start to your annual giving plans. Below are three reasons why your future self might thank you.
1. Better Tax Planning = Bigger Impact
Giving isn’t just good for the soul—it’s good for your tax strategy. But when you wait until December to make major gifting decisions, you limit your flexibility. Starting earlier allows you (and your advisor or CPA) to:
- Identify the most tax-efficient assets to give (cash isn’t always king—appreciated securities may be the more regal gifting asset)
- Plan for itemized deductions and potential carryforwards
- Strategically bunch donations for maximum deduction benefits
In other words, the earlier you start, the more room you have to optimize. And what’s better than being generous? Being generous and tax-smart.
2. Avoid the December Donor Traffic Jam
Nonprofits love year-end donations… but they also get absolutely swamped with them. Mailing delays, bank issues, overwhelmed staff, and system bottlenecks can all interfere with your well-intentioned gifts getting processed in time. Giving in the fall means:
- Your donation is less likely to get stuck in a paperwork (or more likely email) purgatory
- You give organizations more time to plan and allocate your gift
- You free yourself from that “we still need to make our gift ” voice whispering during holiday dinner
You might also note that nonprofits appreciate off-season generosity. Your September donation might be more memorable—and meaningful—than a December one that lands with hundreds of others.
3. More Time, Less Stress, Better Decisions
For many, December is very busy month. Between family events, year-end deadlines, and the 17th ugly sweater party, your schedule doesn’t leave much room for thoughtful philanthropy. Starting early gives you:
- Time to think about and consider organizations and causes you care about
- Room to discuss gifting strategies with family or your advisor
- Peace of mind knowing your giving is already wrapped up
Besides, nothing makes you feel ahead of the game like checking off your charitable goals while everyone else is still Googling “qualified charitable distribution deadlines.”
Generosity (and related tax planning) Shouldn’t Need a Deadline
Yes, the IRS cares about the calendar year. But your giving—and your legacy—shouldn’t be dictated by the calendar (or clock for the most egregious offenders). Whether you’re gifting to family, donating to causes you believe in, or setting up a donor-advised fund, starting in September (or even sooner) puts you ahead of the curve.
At East Franklin Capital, we help clients make intentional, tax-efficient decisions with their giving, no matter the season. If you’re ready to make this year’s generosity your best yet, let’s talk now—while the pumpkin spice lattes are still hot.
