The Smartest Way to Give: Tax-Savvy Donations That Benefit You and Your Community 

By Michael Tukeva, President/CEO, Pocono Mountains United Way 

As we move into February, many of us are beginning to gather paperwork and prepare for tax season. It’s a time when we reflect on our financial well-being and consider ways to maximize our resources. One often-overlooked opportunity is strategic charitable giving—an approach that not only supports vital community programs but also provides potential tax benefits for donors. 

At Pocono Mountains United Way, we see firsthand how generosity transforms lives. Whether it’s providing housing assistance, supporting early childhood education, or ensuring families have access to nutritious food, every donation helps build a stronger, healthier community. But what if your giving could be structured in a way that also benefits you financially? 

Maximizing Your Impact with Smart Giving Strategies 

Many donors write a check at the end of the year without realizing there are more tax-efficient ways to contribute. Here are a few strategies to consider: 

1. Donating Appreciated Assets

 If you own stocks or mutual funds that have appreciated in value, donating them directly to a nonprofit can be a win-win. You may avoid capital gains taxes while deducting the full market value of the asset from your taxable income. 

2. Qualified Charitable Distributions (QCDs) from IRAs

For those 70½ or older, directing a Required Minimum Distribution (RMD) from an IRA to a qualified charity like Pocono Mountains United Way can lower taxable income. A QCD allows you to give up to $100,000 annually tax-free, benefiting both you and your community. 

3. Donor-Advised Funds (DAFs)

DAFs allow donors to contribute cash or securities to a fund, receive an immediate tax deduction, and then distribute funds to charities over time. This approach provides flexibility in managing charitable giving while optimizing tax benefits. 

4. Bundling or Bunching Charitable Contributions

The standard deduction has increased in recent years, making it harder for some to itemize deductions. By “bunching” donations—giving multiple years’ worth of contributions in one year—you may surpass the standard deduction threshold and realize greater tax benefits. 

Giving with Purpose 

Beyond the financial advantages, tax-savvy giving allows you to make a bigger impact on causes you care about. At Pocono Mountains United Way, we strive to connect generosity with meaningful change, ensuring that every dollar works toward lasting solutions for our neighbors in need. 

I encourage you to consult with your accountant or financial advisor to explore these options and determine the best strategy for your situation. If you’d like to discuss how your giving can make the greatest impact locally, I’d love to connect. You can reach me at Michael@PoconoUnitedWay.org. 

Together, we can create a community where generosity thrives, and everyone has the opportunity to succeed. Thank you for considering a tax-savvy approach to giving—it’s a decision that benefits both you and the lives you touch.