As the year wraps up, many people look for ways to support loved ones, strengthen their financial plans, or give back to their community. Here are a few year-end giving strategies to consider as you plan for a generous and financially mindful 2026.
1. Make Tax-Efficient Gifts
For 2025, the IRS annual gift exclusion allows individuals to give up to $18,000 per recipient without needing to file a gift tax return. Married couples can combine their exclusions for a total of $36,000 per recipient.
This can be a helpful way to support family members — such as contributing to education costs or helping with major life milestones — while staying within IRS guidelines.
Tip: Larger gifts may be managed through long-term tools like 529 plans or custodial accounts, which can offer tax advantages depending on the situation.
2. Support Charitable Organizations
Charitable giving can make a meaningful difference and may offer tax benefits for those who itemize deductions.
Donations made by December 31 may be eligible for 2025 tax-year consideration when filing next spring.
Ways to give thoughtfully:
Donate appreciated assets (such as stocks)
Contribute through a donor-advised fund
Take advantage of Arizona’s dollar-for-dollar state tax credit programs for eligible charities and schools
3. Share Financial Knowledge
Sometimes the most valuable gift is education. Offering resources on budgeting, saving, or investing can empower someone to make informed financial decisions.
This could include:
Sharing financial education articles
Gifting a financial literacy book
Encouraging a session with a financial professional
4. Recognize and Invest in Your Employees
Business owners may consider year-end opportunities to support and recognize their teams. Some forms of employee appreciation can also be deductible business expenses depending on IRS rules.
Examples may include:
Employer contributions to retirement programs
Performance-based bonuses
Professional development or training support
Employers should review IRS guidelines or consult with a tax professional to determine eligibility.
5. Prioritize Your Own Financial Goals
Year-end can also be a good time to review your personal financial picture.
Individuals may choose to:
Adjust retirement contributions
Build savings reserves
Review long-term plans with a financial professional
Even small steps can help set the stage for a strong start in 2026.
Planning Ahead Creates Long-Term Impact
Thoughtful financial giving — whether to loved ones, charitable organizations, your employees, or your future self — can have benefits far beyond the holiday season.
If you’d like support navigating year-end planning or understanding your options, our team at Benefit & Financial Strategies is here to help.