Year-end tax deduction strategies aren’t just for the wealthy. Whether you’re looking to minimize capital gains on a stock that’s grown significantly or you want to start a sustainable giving habit on a modest budget, there’s a path for you.
At AMCF, we see both kinds of donors—and we believe both matter equally to the future of Muslim philanthropy. The donor contributing appreciated securities and the donor giving $25/month are building the same thing: a community that gives with intention.
With 15 days left until December 31, here’s how to make your year-end giving count.
Charitable Giving Strategies for Your Year-End Tax Deduction
If you’re itemizing deductions and looking to maximize your tax benefit, these strategies can help you give more efficiently.
Appreciated Stock Donation
Donating appreciated securities—stocks, mutual funds, or ETFs that have grown in value—is one of the most tax-efficient ways to give. Here’s why:
When you donate stock directly to a charity or donor advised fund, you avoid paying capital gains tax on the appreciation. You also receive a year-end tax deduction for the full fair market value of the shares (up to 30% of your adjusted gross income for most securities).
Example: You bought stock for $5,000 that’s now worth $15,000. If you sell it, you’d owe capital gains tax on the $10,000 gain. But if you donate the stock directly, you skip the tax and get a $15,000 deduction.
AMCF accepts appreciated securities contributions. Contact our team to initiate a transfer before the December 31 deadline.
Qualified Charitable Distributions (QCDs)
If you’re 70½ or older and have an IRA, you can direct up to $105,000 per year directly from your IRA to qualified charities. This is called a Qualified Charitable Distribution.
The benefit: QCDs count toward your required minimum distribution (RMD) but aren’t included in your taxable income. For retirees who don’t itemize, this is often the most tax-efficient way to give—you get the benefit of the charitable contribution without needing to claim it as a deduction.
Bunching Your Charitable Gifts
The standard deduction for 2025 is $15,750 for single filers and $31,500 for married couples filing jointly. If your itemized deductions—including charitable gifts—don’t exceed these amounts, you won’t see a tax benefit from your giving.
Bunching solves this problem. Instead of giving $10,000 each year, you contribute $30,000 in a single year (perhaps to a donor advised fund), claim the itemized deduction that year, and take the standard deduction in the following years while recommending grants from your DAF.
With tax law changes coming in 2026, bunching into 2025 may be especially valuable. Read our analysis of how the One Big Beautiful Bill affects your charitable giving for details.
→ Ready to make a strategic gift? Fund your AMCF Giving Account
The Power of $25/Month: Giving That Doesn’t Require a Tax Strategy
Not everyone needs to optimize for a year-end tax deduction. If you take the standard deduction—as roughly 90% of taxpayers do—your charitable gifts don’t directly reduce your tax bill. But that doesn’t make your giving any less valuable.
Monthly giving is one of the most powerful ways to support an organization. Here’s why:
Predictability: When AMCF knows we can count on a certain amount each month, we can plan programs, hire staff, and invest in infrastructure rather than scrambling at year-end.
Collective impact: One hundred donors at $25/month equals $30,000 in annual support. Your modest gift combines with others to create something substantial.
Sustainability: A $25/month commitment is manageable for most budgets—and it adds up to $300/year without requiring you to make a large one-time decision.
As one donor told us: “I am prone to be more generous” when giving is automatic and built into the routine.
Which Path Is Right for You?
Choosing between charitable giving strategies depends on your financial situation, your goals, and how you want to engage with philanthropy.
Consider advanced strategies if: you itemize deductions, have appreciated assets, are over 70½ with an IRA, or want to make a significant gift while maximizing your year-end tax deduction.
Consider monthly giving if: you take the standard deduction, prefer smaller ongoing commitments, or want to build a giving habit without a large upfront decision.
Consider both if: you want the immediate tax benefit of a DAF contribution AND the sustained engagement of a monthly gift to operations.
“I appreciate the collective aspect of impact when I give through AMCF. Even if I’m giving a few hundred or thousands of dollars to a charity, the network AMCF has is distributing millions together. I see it as a way to amplify my gift, showcasing that together, we care for certain causes.” — AMCF Donor
December 31 Is Coming
If a year-end tax deduction matters to you, the deadline is real. Stock transfers, DAF contributions, and QCDs all need to be completed by December 31 to count for 2025.
But if the tax benefit isn’t your motivation, there’s no deadline on generosity. You can start a monthly gift today, tomorrow, or in January—and it will matter just as much to the work we’re building together.
However you give, thank you for being part of the future of Muslim philanthropy.
Strategic giving | Monthly giving | Open a DAF
This content is for informational purposes only and does not constitute tax or legal advice. Please consult with a qualified tax professional regarding your specific situation.