How to Make Holiday Giving a Meaningful Family Tradition

What if the most meaningful gift your family gives this year doesn’t come in a box? For many families, the holidays are a chance to celebrate more than just togetherness; they’re a time to pass down values like generosity, gratitude, and giving back. While the season is often full of gatherings and gift exchanges, weaving charitable giving into your celebrations can help ensure that the spirit of the season extends far beyond your own household.

Making charitable giving part of your holiday traditions doesn’t have to be complicated. It can be as simple as inviting your children or grandchildren to help choose a cause. Conversely, there are plenty of opportunities to incorporate giving strategically into your greater financial plan. 

Here are a few tips for getting the whole family in the giving spirit this holiday season.

Establish a Family Giving Tradition

One of the simplest ways to instill charitable values is to make giving a recurring family event. Consider picking a date to discuss giving together—just make sure it’s early enough that you have time to incorporate any action items into your to-do list before the year ends.

Encourage children or grandchildren to share their own ideas for causes they care about. Incorporating things that get your younger family members excited from the start is a simple way to keep their spirits high.

Plus, you might be surprised by their ability to identify community needs or challenges they’ve learned about in school. Ask them to share why they care about certain causes or charities, and don’t be afraid to share your own stories as well. Talking about what inspires you to give and how it’s shaped your perspective is an important part of passing along the tradition of giving.

Throughout these planning conversations, try to keep the tone light and conversational. The purpose here isn’t to boast about large dollar contributions or compare complex tax strategies. Rather, this is your opportunity to teach the importance of empathy, generosity, and action.

Consider Your Collective Impact

While individual giving is powerful, pooling resources as a family can help magnify your impact. You might, for example, consider creating a “family giving fund” to support one or two causes as a family. Doing so would help you make a larger collective donation than any individual family member could accomplish alone.

Shared giving traditions can help families feel closer, even when they're miles apart. Everyone can contribute, regardless of where they live, and see their support in action, whether that’s funding a local food bank, supporting a scholarship fund, or providing relief after a natural disaster.

For those family members living in the same community, volunteering together can also add greater meaning to the holiday giving strategy. Younger children and older adults alike may find that hands-on opportunities (sorting food donations, wrapping gifts for families in need, etc.) better connect the act of giving with tangible impact. While charities could always use your financial support, many also appreciate the time and skills provided by volunteers during the holidays.

Choose Your Charitable Giving Strategy

There’s no single best way to give to charity, but some approaches may offer more flexibility, control, or tax advantages than others.

Direct Donations

Giving directly to a nonprofit is the most straightforward giving strategy available. That being said, your direct donations can come with attractive tax advantages. Donating appreciated assets directly to charity, for example, enables you to bypass the need to sell and pay capital gains on the profits. Instead, the full value of the asset goes directly to charity, and no taxes are collected. This can be especially helpful for managing the tax impact of highly appreciated assets (including individual stocks and property).

If you prefer to donate cash, that’s always helpful too! You’ll be allowed to take an above-the-line deduction of up to $1,000 ($2,000 for joint filers) for charitable donations, even if you opt for the standard deduction. If you itemize, you can deduct more in charitable donations—as long as they exceed 0.5% of your adjusted gross income (AGI).

Donor-Advised Funds

A donor-advised fund (DAF) is a type of charitable investment account. You make a tax-deductible contribution to the fund, allow the funds to grow tax-free, and then recommend grants to your chosen charities over time.

DAFs can be especially useful if you want to maximize a year-end tax deduction while taking more time to thoughtfully select the charities you’ll support later.

Qualified Charitable Distributions (QCDs)

If you’re subject to required minimum distributions (RMDs), you can opt to donate the RMDs from your IRA directly to charity via a qualified charitable distribution (QCD). 

The amount donated counts toward fulfilling your RMDs for the year and is excluded from your taxable income.

Create and Follow an Intentional Giving Plan

If you’re already doing a year-end financial review in December, there’s no reason not to assess your charitable goals as well. Look at your budget, evaluate your year-end tax position, and consider how much you’d like to allocate to charitable giving in the coming year.

These conversations, whether with your spouse, children, or a financial advisor, can naturally lead to broader legacy topics. For example, you might want to discuss how giving could be incorporated into your estate plan (with a charitable remainder trust, for example) or whether you’d like to include a charity as one of your account beneficiary designations. 

During these year-end reviews, think about how your actions and considerations serve as a model for your young ones. Help them see what it really looks like to align money with values in an impactful way.

Make the Holidays More Merry and Bright

If you haven’t already, think about how to involve your family in your charitable giving this holiday season. Start with an open conversation. Ask which causes matter most to them, and look for ways to support those causes together. It’s a meaningful way to align your values and make a bigger impact.

If you’re looking for ways to incorporate charitable giving into your broader financial plan, we can help you explore your options. Let’s talk about what might work best for you and your family this season.

Russell D. Rivera, CFA, CFP®, is the Founder and President of Voice Wealth Management, an independent financial services firm serving professionals, entrepreneurs, and families in New York City and beyond. Focusing on helping clients make informed decisions about saving, investing, and financial planning, Russell is committed to providing a customized approach that reflects each client’s unique priorities and experiences.

This material has been prepared in collaboration with Crystal Marketing Solutions, LLC, and has been edited with the assistance of artificial intelligence tools. The information presented is based on sources believed to be reliable and accurate at the time of publication. This material is for educational purposes only and does not necessarily reflect the views of the author, presenter, or affiliated organizations. It should not be construed as investment, tax, legal, or other professional advice. Always consult a qualified professional regarding your specific situation before making any decisions.