Did you know that more charitable giving happens in December than any other time of the year? Over one-third of all charitable giving is done in the last quarter of the year. The majority of that giving happens in the month of December.

December is a time to focus on charitable giving and close out the year strong, and even churches can encourage year-end gifts. Here are four tips to encourage year-end giving in your congregations.

In all of this, the Presbyterian Foundation is here to help. Start with your Ministry Relations Officer, which you can find here.

Additionally, you can find year-end giving bulletin inserts, slides for PowerPoint, a brochure, and much more to use in your congregation on this web page.

Tip #1: Appreciated Securities

Only about 11% of our net worth, on average, is in our bank accounts. However, in our congregations we typically ask for cash gifts. But that ask is from the smallest portion of net worth that a family or individual has.

Appreciated securities are gifts from stocks, bonds, or other non-cash gifts such as real estate, which has grown in value over time. Appreciated securities gifts are often significantly larger than cash gifts. One of the main reasons this is true is because of the tax benefits realized by donors when giving appreciated securities. With an appreciated securities gift,  capital gains are not typically taxed. There is also the potential benefit of a charitable tax deduction of the market value of the gift. Beginning in 2026, even non-itemizers will be able to deduct charitable gifts up to $1,000 per person.

Begin the process of making a securities gift by mid-December at the latest, as these gifts take time to process. It is also important to note that the donor must transfer the security directly to the church or charity to receive the tax benefits. If your congregation is not set up to receive this type of gift, the Presbyterian Foundation can help with this. See this link for the steps to make a gift of securities or ask your Ministry Relations Officer for help.

Tip #2: Donor Advised Funds

Donor advised Funds have been the fastest growing charitable giving vehicle by far for many years now. Donor advised Funds are a vehicle in which a donor transfers assets to a charity and the donor retains advisory recommendations over the fund. The donor can recommend how it is invested, where and when to make grants, and whether those grants are out of principle or out of income. Contributions to a Donor Advised Fund are  tax-deductible.

A Donor Advised Fund may also offer additional tax benefits by allowing the donor/advisor to “bunch” their giving. For example, a donor/advisor may give twice their usual gift to their Donor Advised Fund in one year and itemize deductions to receive the maximum tax benefit . They can then recommend grants to their church or favorite charity over the course of two years. In the second year, the donor can take the standard deduction. The donor receives the greatest tax benefit possible, and the church or charity receives reliable annual income.

Many people don’t consider giving to their congregation from their Donor Advised Fund so it is important to make members of your congregation aware that you accept Donor Advised Fund grants. Most Donor Advised Funds allow donor/advisors to recommend recurring grants, so it’s very easy to continue to pay a monthly pledge to the church. It is important to note that when accepting gifts from Donor Advised Funds, the acknowledgement should NOT contain any language regarding a possible tax deduction as the donor has already received any tax benefit when they contributed to their Fund.

Tip #3: Qualified Charitable Distributions from IRAs

A Qualified Charitable Distribution (QCD) is an otherwise taxable distribution from an IRA (other than an ongoing SEP or SIMPLE IRA) owned by an individual who is at least 70 1/2 years old that is paid directly from the IRA to a qualified charity. In other words, if a donor is at least 70 1/2 years old, they may direct their IRA custodian to send a distribution from the IRA directly to their church or favorite charity. Because the donor never receives the distribution, it is excluded from their taxable income and produces a tax savings. The donor receives the benefit regardless of whether they itemize or not. Additionally, a QCD will count toward any annual Required Minimum Distribution (RMD) if the donor is required to take one. QCDs are a tax-smart way to support the charities you care about most, including your local church.

Tip #4 Legacy Giving Reminder

Interest in planned giving is growing dramatically. As Baby Boomers continue to age, we find ourselves in the midst of the largest generational transfer of wealth in U.S. history. Data from the IRS reflects that gifts in wills are typically  three times larger than lifetime giving. When people commit to making a gift from their estate, studies show that their annual giving often increases  as well.

Remind your congregation that you accept legacy gifts and to consider adding the church to their will, or even as the beneficiary of a life insurance policy.

Find many more resources about legacy giving on our website.