Financial advisor shares strategies to maximize charitable donations

MILWAUKEE (CBS 58) -- Financial advisor Brad Allen joined us Wednesday, Nov. 12 to talk about how people can make the most of their charitable giving during the holiday season.

Allen, from Drake & Associates, explained that nearly one-third of the year's charitable giving comes in December, and charitable contributions can be deducted from yearly taxable income. He outlined several strategies including Qualified Charitable Distributions for those aged 70½ and older, donating appreciated stocks to avoid income tax on appreciation and opening donor-advised funds that allow upfront tax write-offs.

He also noted that only donations made to IRS-qualified 501(c)3 charities are tax-deductible, and people can deduct up to 60% of their adjusted gross income if they donate cash to a qualified charity.

Starting in 2026, single filers who do not itemize will be able to deduct up to $1,000 in charitable donations, while joint filers will be able to deduct up to $2,000, according to Allen.

To learn more, click here to contact Drake & Associates.