Year-End Fundraising: Planning for Success
As the calendar year closes, nonprofits enter our most critical fundraising period. December consistently accounts for a disproportionate share of annual giving – nearly 30% of all giving occurs in December, and a full 10% happens in just the last three days. So how can we do everything we can to take advantage of this unique period? Below are a few data driven strategies.
1. Position Giving as a Tax-Smart Strategy
As families review year-end finances, charitable giving can reduce taxable income and in some cases even lower overall tax brackets, leading to significant savings. Educating donors about the tax code builds trust and positions the development officer as more than just a solicitor, but someone of personal value to the donor.
Perhaps the most tax-savvy gift method for IRA holders is a Qualified Charitable Distribution. Normally, withdrawals from IRAs are taxable, but not if they are given directly to a 501c3. This giving method lowers Adjusted Gross Income (AGI), which can reduce Medicare premiums and taxation of Social Security. Also, unlike appreciated assets like stocks, IRA funds cannot be deposited into Donor Advised Funds, so they are more likely to go directly to non-profits.
One particularly salient piece of information at the end of 2025 will be the changes to the tax code going into effect on Jan 1, 2026. Many fundraisers are considering whether bunching gifts will be a more valuable strategy going forward – something interesting to discuss with your donors.
While we should not offer direct tax advice, providing education and resources is appropriate and greatly beneficial. By helping donors understand how giving strengthens both their household finances and their community, we deepen their relationship with our organizations and us as development representatives.
2. Highlight Appreciated Assets
Cash is not the only way to give – in fact, about half of itemized charitable giving is in non-cash assets. Appreciated assets such as stock, gold, or cryptocurrency provide donors with multiple advantages:
- They avoid capital gains tax.
- They still receive a charitable deduction as well as membership and benefits from their favorite charities.
- They can repurchase the investment at a reset cash basis.
Recent market trends have made these gifts even more compelling. According to recent data, gold is up about 44% year-over-year. Bitcoin has averaged nearly 49% annually over the last decade and is already up ~25% this year compared to last. These are exactly the kinds of appreciated assets that donors can give this December for maximum impact. If your organization cannot yet accept crypto, platforms like FreeWill’s Crypto for Charities offer simple, no-cost solutions.
3. Collaborate and Compete with Donor-Advised Funds (DAFs)
Somewhat controversially in the development community, DAFs are redefining philanthropy. DAFs now account for more than one-quarter of all U.S. charitable giving, more than doubling the output of private foundations per Chariot’s 2025 DAF Giving report. With no required payout timeframe, it falls on nonprofits to actively compete for these assets, especially in December. 57% of all contributions into DAFs are made in the fourth quarter – these are funds that could go directly to nonprofits if we solicit effectively.
However, there is good news from the DAF community, as well, which makes them great partners in philanthropy. There is a persistent concern in the industry that DAFs might lead to decreased support of operating nonprofits. Chariot’s reported data shows that is not the case, rather there is substantial benefit to a nonprofit when their current supporters start using a DAF instead of other means of giving. Over half of existing donors from 2023 that switched to giving via DAF in 2024 more than doubled their annual giving.
Pertinent Info from Chariot’s 2025 DAF Giving report:
- Average DAF gifts are 26x larger than non-DAF gifts
- 69% of DAF gifts are <$1,000 making a DAF solicitation a great fit for your Annual Fund!
- In 2024 the median change in annual support of an organization when an existing donor switched to DAF giving was +100%
- Median DAF revenue growth for non-profits was +30% while median non-DAF revenue was -1%
- DAF donor retention rates are 13% higher than non-DAF
My personal takeaway from all of this information is that we have to both cultivate DAF donors and compete with DAFs for incoming funds. Both methods can be highly effective with donors of different styles.
4. Heroes, Matches and the Holiday Spirit
Donors respond to urgency. “We are just $25k away from reaching our end of year goal!” Many of our fiscal years do not align with the end of the tax year, but we can still articulate our December funding deadlines so that donors can still feel recognized as “year end heroes.”
If possible, securing a year-end matching gift can push a donor to make a gift when it’s most beneficial to both their financial planning and their favorite organization. The opportunity to both double their philanthropic impact and do something beneficial to their personal finances is as strong of a solicitation opportunity as we have at our disposal.
This season naturally prompts generosity—by tying the spirit of giving to your mission, you position donations as a meaningful part of holiday traditions. Holiday cards are especially effective vehicles. As supporters purchase gifts for loved ones, you can invite them to make a charitable gift that reflects their values and brings joy beyond their own family.
5. Blend Financial Savvy with Emotional Appeal
The most successful year-end appeals speak to both the head and the heart. Donors want to feel the emotional impact of their gift, but they also want to know they’ve made a smart financial decision. When fundraisers confidently bring these two motivations together, they inspire larger and more enduring commitments.
– Tom Mulder, Senior Giving Officer at SF Opera
Tom Mulder is a Senior Individual and Corporate Giving Officer at San Francisco Opera. A Grammy Nominated opera singer himself, Tom has enjoyed performing around the world as a soloist and with the Metropolitan Opera Chorus.