December 9th, 2025

Charitable Giving and Tax Benefits: What You Need to Know Before December 31

As the year ends, many members look for ways to give back while maximizing tax benefits. Charitable giving isn’t just good for the community—it can also reduce your taxable income if done correctly. Here’s what you need to know before December 31, 2025.

Why Year-End Giving Matters

To qualify for a tax deduction on your 2025 return, donations must be completed by 11:59 PM on December 31. Whether you give online, by check, or through a special program, the transaction date is what counts—not the pledge date.

How to Maximize Your Tax Deduction

• Itemize Your Deductions: Charitable contributions only reduce taxes if you itemize. If your total deductions exceed the standard deduction, you’ll benefit most.
• Save Documentation: Keep receipts or confirmation emails. For donations of over $250, you need a written acknowledgment from the charity.
• Donate Appreciated Assets: Giving stocks or other assets can help you avoid capital gains tax and increase your deduction.

Avoid These Common Mistakes

• Unverified Platforms: Stick to trusted organizations and official websites. Scams spike during the holidays.
• Missing the Deadline: Postmark or transaction date matters—don’t wait until January 1.
• Ignoring IRS Limits: The IRS caps charitable deductions at a percentage of your adjusted gross income (typically 60% for cash donations).

Give Back Through MTC Federal

Support your community by donating to the MTC Federal Credit Union Foundation, which funds local programs and financial education initiatives. Your contribution stays local and makes a real impact.

Skip-a-Pay for a Cause

Qualifying loan holders can participate in our Skip-a-Pay program this holiday season. When you choose to skip your December loan payment, you’ll have the option to make a donation to the MTC Federal Foundation. It’s a simple way to ease your budget and give back.

Log-in to your digital banking account to check and see if your loan qualifies.

Ready to Donate?

• Visit any MTC Federal location or donate online via the MTC Federal Foundation Donation page.
• Contact your local branch for additional Skip-a-Pay details
• Act before December 31 to ensure your gift counts for 2025 tax benefits

Giving feels good—and it’s smart financial planning. Let’s make this season brighter together.

Source links:

• IRS Publication 526: Charitable Contributions – Explains what qualifies as a deductible donation, documentation requirements, and limits.
  IRS.gov Publication 526 [irs.gov]
  
• Tax-Deductible Donations Rules – Donations to qualified 501(c)(3) organizations may reduce taxable income if you itemize.
  NerdWallet: Tax-Deductible Donations
  
• Charitable Donation Deadlines – All online donations (credit/debit, PayPal, ACH) must be completed by 11:59 PM on December 31 to qualify for a tax deduction. Checks must be postmarked by December 31.
  GiveDirectly Year-End Giving Guide [givedirectly.org]