Key takeaways

  • The practice of charitable giving is a time-honored tradition going back centuries that, in present day, continues most commonly during what is known as Giving Season during the last two months of the year.
  • Giving can help lower your tax burden, while enabling you to support causes dear to your heart.
  • Donor-advised funds provide you with the opportunity to make contributions to many charities over an extended period.


Andrew Berry


The end of the year is a time for reflection and renewal – and for giving. The practice of charitable giving is a time-honored tradition going back centuries that, in present day, continues most commonly during what is known as Giving Season during the last two months of the year. There are many reasons people feel a philanthropic call to action, each with their own set of benefits. Here are three common motivations for making gifts during Giving Season.

Lessen your tax burden, regardless of what tax bracket you fall into

Many choose to give because of the tax benefits they might receive.

“Generally, a donor will get an income tax deduction equal to the fair-market-value of assets they give to charity,” said Adam Frank, Head of Wealth Planning and Advice for J.P. Morgan Wealth Management. “If someone contributes long-term appreciated assets held for over a year, such as stocks, mutual funds or other assets, they can also avoid paying tax on the built-in capital gain. You have to itemize your deductions to get the full benefit, but you can still avoid capital gains tax on contributions of appreciated assets even if you take the standard deduction.”

However, it’s important to remember that there is a limit to the amount you can deduct from your tax bill on an annual basis, based on a percentage of your adjusted gross income (AGI) for the year.

For more information, contact a tax professional.

“Even clients who are giving money to a cause they’re passionate about may still want to be as tax efficient as possible.”

Go the extra mile for missions and charitable goals near and dear to your heart

People will often give because they have causes they care about, or they are moved by issues that are happening around them.

“Both approaches are valid,” said Maria Alejandra Oltra, a Philanthropy Advisor for J.P. Morgan Private Bank. “You can give to causes that are ‘timeless’ – things like education, health care or culture, for instance – and you can give based on circumstances or discussions; for example, natural disasters, conflict or racial equity.”

Either way, Giving Season is the time when non-governmental organizations (NGOs) are heavily fundraising because they know donors are thinking about year-end tax planning and making financial decisions based on their annual incomes and how much they have left to give.

“There’s also a spirit of starting a new year. So if you give an organization money, then they’ll be able to do new things. The dynamic of starting a new year is guiding a lot of that,” Oltra said.

Enhance your legacy for future generations

Donor-advised funds provide you with the opportunity to share your values and desire to support organizations with your next generations. Best of all, they allow you to make contributions to many charities over an extended period.

“Many times people want to give a certain amount of money, but they don’t want to give that much money to one specific charity right away,” said Frank. “People can create charitable vehicles for their charitable gifts that allow them to designate money for charitable purposes, but not have to choose the end charity right away, potentially creating a philanthropic vehicle for themselves and their families.”

Specifically, donor-advised funds are a great option for those who want to create a legacy for future generations. They are vehicles where your charitable funds can appreciate, generate income and grow income-tax-free over time. Best of all, you don’t need to choose the charity to donate to immediately. You can wait as long as you want to distribute the money, and have your children and grandchildren be involved in the process.

“Even though people are often motivated during Giving Season by their year-end tax planning, if they don’t know what charities or causes they ultimately would like to support, they could make their philanthropic gifts into a donor-advised fund (or a private foundation) and choose their end charities over time,” Frank said. “Contributing to a donor-advised fund can also make tax reporting easier if you itemize your deductions”.

For questions about giving and/or donor-advised funds, please reach out to a J.P. Morgan Advisor.

Connect with a Wealth Advisor

Our Wealth Advisors begin by getting to know you personally. To get started, tell us about your needs and we’ll reach out to you.

Connect now



This material is for informational purposes only, and may inform you of certain products and services offered by J.P. Morgan’s wealth management businesses, part of JPMorgan Chase & Co. (“JPM”). Products and services described, as well as associated fees, charges and interest rates, are subject to change in accordance with the applicable account agreements and may differ among geographic locations. Not all products and services are offered at all locations. If you are a person with a disability and need additional support accessing this material, please contact your J.P. Morgan team or email us at accessibility.support@jpmorgan.com for assistance. Please read all Important Information.

Any views, strategies or products discussed in this material may not be appropriate for all individuals and are subject to risks. Investors may get back less than they invested, and past performance is not a reliable indicator of future results. Asset allocation/diversification does not guarantee a profit or protect against loss. Nothing in this material should be relied upon in isolation for the purpose of making an investment decision. You are urged to consider carefully whether the services, products, asset classes (e.g. equities, fixed income, alternative investments, commodities, etc.) or strategies discussed are suitable to your needs. You must also consider the objectives, risks, charges, and expenses associated with an investment service, product or strategy prior to making an investment decision. For this and more complete information, including discussion of your goals/situation, contact your J.P. Morgan representative.

NON-RELIANCECertain information contained in this material is believed to be reliable; however, JPM does not represent or warrant its accuracy, reliability or completeness, or accept any liability for any loss or damage (whether direct or indirect) arising out of the use of all or any part of this material. No representation or warranty should be made with regard to any computations, graphs, tables, diagrams or commentary in this material, which are provided for illustration/reference purposes only. The views, opinions, estimates and strategies expressed in this material constitute our judgment based on current market conditions and are subject to change without notice. JPM assumes no duty to update any information in this material in the event that such information changes. Views, opinions, estimates and strategies expressed herein may differ from those expressed by other areas of JPM, views expressed for other purposes or in other contexts, and this material should not be regarded as a research report. Any projected results and risks are based solely on hypothetical examples cited, and actual results and risks will vary depending on specific circumstances. Forward-looking statements should not be considered as guarantees or predictions of future events.

Nothing in this document shall be construed as giving rise to any duty of care owed to, or advisory relationship with, you or any third party. Nothing in this document shall be regarded as an offer, solicitation, recommendation or advice (whether financial, accounting, legal, tax or other) given by J.P. Morgan and/or its officers or employees, irrespective of whether or not such communication was given at your request. J.P. Morgan and its affiliates and employees do not provide tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any financial transactions.

Legal Entity and Regulatory Information.

J.P. Morgan Wealth Management is a business of JPMorgan Chase & Co., which offers investment products and services through J.P. Morgan Securities LLC (JPMS), a registered broker-dealer and investment adviser, member FINRA and SIPC. Insurance products are made available through Chase Insurance Agency, Inc. (CIA), a licensed insurance agency, doing business as Chase Insurance Agency Services, Inc. in Florida. Certain custody and other services are provided by JPMorgan Chase Bank, N.A. (JPMCB). JPMS, CIA and JPMCB are affiliated companies under the common control of JPMorgan Chase & Co. Products not available in all states.

Bank deposit accounts and related services, such as checking, savings and bank lending, are offered by JPMorgan Chase Bank, N.A. Member FDIC.

This document may provide information about the brokerage and investment advisory services provided by J.P. Morgan Securities LLC (“JPMS”). The agreements entered into with JPMS, and corresponding disclosures provided with respect to the different products and services provided by JPMS (including our Form ADV disclosure brochure, if and when applicable), contain important information about the capacity in which we will be acting. You should read them all carefully. We encourage clients to speak to their JPMS representative regarding the nature of the products and services and to ask any questions they may have about the difference between brokerage and investment advisory services, including the obligation to disclose conflicts of interests and to act in the best interests of our clients.

J.P. Morgan may hold a position for itself or our other clients which may not be consistent with the information, opinions, estimates, investment strategies or views expressed in this document.  JPMorgan Chase & Co. or its affiliates may hold a position or act as market maker in the financial instruments of any issuer discussed herein or act as an underwriter, placement agent, advisor or lender to such issuer.