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July 14, 2025 - The holiday season is the busiest time for charitable giving. Thirty percent of annual giving occurs in December, with 10% occurring in just the last three days of the month. The end of the year can feel like the most natural time to give. The holiday spirit inspires in many an increased generosity and desire to contribute to the common good. For others, the close of the year marks an opportunity to review budgets, set new goals and ensure their annual donations are given in time to realize tax benefits.

While nonprofits rely on these end-of-year donations to continue their important work, the sheer volume of gifts made in the final month of the year can also create a scramble for donors, charities and financial institutions working to process the donations before December 31.

Rather than race against the clock amidst the bustle of holiday activities, you could use a donor-advised fund (DAF), a giving tool, to meet your charitable goals while avoiding the end-of-year rush. A DAF is a charitable giving account that is sponsored by a public charity and funded by a donor’s tax-deductible contributions. Those contributions are invested for tax-free growth, and donors can recommend grants from their DAF to eligible charities of their choice at any time. Here are a few ways the DAF can multiply the joy of giving:

 1. GIVE STRATEGICALLY

Generally, contributions to DAFs are tax-deductible. So, a DAF donor receives a tax receipt from their DAF sponsor and is eligible for a charitable tax deduction when the contribution is made to their DAF, not when a grant is issued from their DAF. Because the tax-deductible giving event is separated from the grantmaking, donors have more flexibility.

For instance, donors can contribute to their DAFs throughout the year, then enjoy making grants to their favorite charities’ end-of-year campaigns without worrying that the grants must be processed by December 31. By contributing to their DAFs earlier in the year, donors avoid the risk of end-of-year processing delays and missing out on possible tax deductions.

As another example, if a charitably minded donor receives a financial windfall, they can offset their income tax exposure by donating some of that windfall to charity. If it is a sizeable amount, it could equal years’ worth of the donor’s typical charitable giving. In cases where the donor is not comfortable giving the entire amount to charity all at once, they could contribute the amount to their DAF, realize the charitable tax deduction, invest the funds for growth and still make grants to their favorite charity according to their typical giving pattern.

Whether you’d like to make recurring contributions from your bank account, rebalance your investment portfolio by donating a particular stock, or contribute a portion of the proceeds of the sale of real estate or a closely-held business, a DAF allows you to make your charitable contribution (and receive your charitable tax deduction) when it is best for you. Then, you can enjoy making grants whenever you are inspired to do so.

2. GRANT INTENTIONALLY

Perhaps the end of the year is your preferred time to support your favorite missions or projects. When you contribute to your DAF throughout the year, the holiday season becomes less about last-minute gift processing before year-end and more about the joy of choosing what grants to make to the causes that matter most to you. Giving with a DAF at Christmas can be a special gift to nonprofits, too. Since DAF grants do not require tax receipts, you can help lighten the gift-processing load during their highest-volume season. 

Even if you prefer to make grants during the holidays, when you give regularly and strategically to your DAF, you are also poised to respond to charitable needs that arise throughout the year. Whether to a capital campaign or a disaster relief fund, your charitable dollars are ready to be granted as you are inspired, and you can be an essential supporter of a charity’s important work at a critical time.

3. GIVE WITH CONFIDENCE

Donors can often realize tax benefits that maximize their charitable impact when they donate complex, noncash assets. Unfortunately, not all charities are equipped to receive such assets with expertise. DAF sponsors, like HighGround, typically have dedicated teams capable of expertly receiving complex assets. With a DAF, you can give beyond cash with confidence, then grant to your charity of choice, saving them the hassle of receiving and managing the asset.

By opening a DAF today, you can experience the joy of Christmas in July, giving yourself the flexibility to contribute strategically while giving your favorite charities the support they need, whether now or at the end of the year. To learn more about this charitable giving tool, visit our DAF page or contact Katie Hancock, Director of Philanthropic Engagement & Strategy, at 214.978.3303 or katie.hancock@highgroundadvisors.org.