Giving Thanks with Charitable Giving
Giving Thanks Through Giving Back: Charitable Donations & Financial Planning
While it’s completely acceptable to break out Mariah Carey’s Christmas album on November 1st, let’s not skip past Thanksgiving. November kicks off the holiday season with a timely reminder: gratitude is the reason for the season.
And gratitude often leads to generosity. Thanksgiving transitions naturally into a season of giving—both in spirit and in practice. Here in Austin, we’re surrounded by a culture that values community and lifting others up. At NEST Financial, we’ve seen this firsthand in our work with individuals, families, and businesses across Austin and Hill Country.
If you're feeling inspired to give this season, here are some important things to keep in mind when making charitable donations.
Choosing a Recipient
Start with a cause that matters to you—whether it’s personal or simply something you want to support. Once you’ve identified a few options, do some research:
Confirm how the organization uses donations.
Make sure they’re aligned with your values.
Check whether they are a tax-exempt organization under IRS rules. You can use the IRS Tax Exempt Organization Search to verify.
Many nonprofits are still recovering from the financial impact of the pandemic. Supporting them not only helps your community—it can also help reduce your tax burden.
How Much to Give
To make your giving sustainable, build it into your budget. That way, you’re giving consistently without disrupting your financial flow.
Some general guidelines:
C Corporations can donate up to 25% of their taxable income in most cases.
Sole proprietors, partners, and S Corp owners treat charitable gifts as personal contributions and must adhere to personal deduction limits (typically up to 60% of adjusted gross income).
Donations of inventory or tangible property are usually deductible at fair market value.
For more info on how this ties into your tax strategy, review the IRS’s charitable contribution rules for businesses.
Get the Right Documentation
For any gift over $250, the IRS requires documentation. Acceptable forms include:
A written acknowledgment from the organization
A canceled check or a bank statement
A receipt showing the amount and a description of any goods or services exchanged
If you receive anything in return (like event tickets or auction items), you can only deduct the amount that exceeds the fair market value of what you received.
Other Ways to Give
Not every form of generosity involves writing a check. Here are a few alternative ways to support charitable organizations:
Sponsorships or cause marketing (not deductible, but may count as marketing expenses)
Volunteering (time isn’t deductible, but expenses like mileage might be)
Establishing a charitable trust or foundation for larger or recurring gifts
This flexibility means you can find a way to contribute that fits your values, your time, and your financial goals.
Giving Thanks Year-Round
Charitable giving isn’t just about the holidays—it can become a core part of your financial strategy. Giving consistently and strategically strengthens your community and boosts morale—for both giver and recipient.
This overview is just the start. If you’d like to explore how charitable giving can support your overall financial goals, reach out to us. Our team at NEST Financial is proud to support Austin and the surrounding Hill Country community—and we’re here to help you thrive.
📧 Contact us at info@nestfinancial.net
Find us on:
DISCLAIMER: The information in this article is for educational purposes only and does not constitute investment or financial planning advice. For personalized guidance, email info@nestfinancial.net.