Copyright Kiplinger
As 2025 winds down, you may soon be finalizing your charitable-giving plans for the year. Many causes need funding, from relief efforts following natural disasters to humanitarian aid initiatives in countries ravaged by conflict and political instability. By donating to reputable organizations, you can support them as they provide vital resources, research and programs. But deciding which charities most deserve your dollars can be overwhelming. With so many worthy causes to consider, it pays to put some thought into which ones best align with your values and to research which organizations are likely to make the best use of your donations. Along with taking advantage of tax-savvy ways to give, such as contributing to a donor-advised fund or making qualified charitable distributions from an IRA, creating a budget and a schedule for giving throughout the year can help maximize your impact. Below, we have guidance on setting up a solid giving strategy. And if you're looking for ideas for organizations where you can direct your donations, check out our list of some top-rated charities in a variety of categories. Do some soul-searching Start by narrowing down the types of causes you'd like to support, reflecting on the issues that matter to you most. "I always suggest that people do a value exercise," says Colby Bircher, vice president of philanthropic strategies for donor-advised fund Fidelity Charitable. Consider bringing your children into the conversation, too. "If you want to engage the next generation in your philanthropy, you can all come up with collective shared values among the family to really help drive forth what's important to you and how you want to support that giving." A few questions to consider: Which causes inspire you? Which populations or groups might you want to focus on, and where are they? What are you looking to accomplish with your support? Once you've answered those questions, learn more about the issues that you care about and how charities can most effectively influence them. You might read research from foundations that specialize in an issue, attend events related to it or speak with experts, such as representatives from a charity that focuses on the issue. Think about how you'd like a nonprofit to put your donations to work. You may want to help fund research — say, for treating Alzheimer's disease or ensuring clean drinking water. Or you may prefer to focus on organizations that advocate for policy change or that provide direct services, such as emergency aid following a disaster. Another approach is to donate to efforts that tackle the root causes of a particular issue rather than the issue itself, says Theresa Schieber, vice president of advisory for Rockefeller Philanthropy Advisors. This method of focusing on "systems change" may manifest as supporting education, economic opportunity and access to jobs as a means of tackling homelessness, for example, rather than developing more shelters and housing. "A systems-change approach allows you to use a much bigger lens with a particular challenge," says Schieber. Set your donation budget While year's end is the high season for giving, you may want to contemplate a strategy for your charitable donations in 2026 and beyond, too. Spreading your donations throughout the year (say, on a monthly or quarterly basis) rather than waiting until the end of the year, when your budget may be squeezed by holiday expenses, can help ensure that you meet your giving goals. A steady flow of donations during the year can be helpful for charities, too — especially causes that have faded from the headlines but still need ongoing support, from the wildfires that swept through Los Angeles early this year to the flooding that struck Texas Hill Country over the summer. Plus, if you take the standard deduction on your tax return, you may have good reason to shift some of the contributions you'd ordinarily make by the end of this year to 2026, thanks to changes in the One Big Beautiful Bill Act, signed into law over the summer. Starting in 2026, taxpayers who don't itemize can deduct up to $1,000 in charitable contributions, or up to $2,000 for married couples who file jointly. For the 2025 tax year, however, you don't get a deduction for charitable contributions if you don't itemize. As you make a plan, consider setting short- and long-term goals for the amount of money you want donate and the frequency at which you'd like to give. You might plan to donate $250 per month over the next two years, for instance, and then aim to increase your monthly giving by 50%, to $375, for the two years following that. To maximize the impact of your donations, check whether your employer has a gift-matching program, which matches your donations dollar-for-dollar up to a specified limit. Think about how you'll divvy up your donations, too. A good general guideline is the 80-20 rule, says Bircher, of Fidelity Charitable: "80% of your giving goes to an area that aligns well with your charitable mission, and 20% is reserved to giving more responsively." In other words, you could set aside the bulk of your giving budget for your core strategy and a smaller portion for, say, donating to fundraisers that family members and friends ask you to support or providing aid after a natural disaster or when another sudden need arises. Note: This item first appeared in Kiplinger Personal Finance Magazine, a monthly, trustworthy source of advice and guidance. Subscribe to help you make more money and keep more of the money you make here.
