Top-ranked advisors suggest three tax moves to optimize charitable donations for 2024.

• Some strategies can help investors maximize their charitable donations, although tax breaks are not the primary motivation for giving.
• Julie Goodridge, founder and CEO at NorthStar Asset Management, which ranked No. 44 on the 2023 CNBC FA 100 list, urged people to start considering charitable giving in June.
• Now is a smart time to start planning for the 2024 tax year, even though it might be too late to execute some of these money moves as the end of 2023 approaches.

Some strategies can help investors maximize their charitable donations, although tax breaks are not the primary motivation for giving.

With the end of 2023 only days away, it's too late to implement some strategies.

Julie Goodridge, founder and CEO at NorthStar Asset Management, which ranked No. 44 on the 2023 CNBC FA 100, advised people to start considering charitable giving in June.

But now is a smart time to start planning for 2024.

Taking care of these things sooner rather than later can benefit you by giving you more time to think, be more thoughtful, and ensure you don't miss opportunities, advised Stephen Cohn, a certified financial planner and co-president and co-founder of Sage Financial Group, ranked No. 22 on the FA 100 list.

Your early planning can also benefit the nonprofits you want to aid.

CFP Shaun Williams, partner and private wealth advisor of Paragon Capital Management, stated that it is beneficial for organizations to receive donations earlier in the year, which can help them spread out their funding and improve their financial stability. The firm was ranked No. 57 on CNBC's FA 100.

Some of this year's top advisors have provided three strategies for optimizing charitable contributions.

1. Open a donor-advised fund

Opening a donor-advised fund is a common strategy for increasing charitable deductions, according to Cohn.

By contributing a lump sum to these accounts, taxpayers can claim deductions in that tax year and distribute the funds to nonprofits over time. This significant contribution allows taxpayers to itemize deductions instead of taking the standard deduction, resulting in a tax benefit for their charitable giving.

Consider opening a donor-advised fund in your last working years and contribute enough money to make donations during your early retirement.

According to Williams, the greater your tax bracket, the more potent a tax deduction becomes.

2. Donate appreciated stock

Goodridge advised investors to consider giving away appreciated stock as a form of significant charitable giving.

Investors can reduce their tax liability by donating appreciated stock, according to Cohn. By holding the stock for at least a year, you can typically deduct its fair market value.

He stated that it was a substantial opportunity for those seeking to contribute funds to a charity.

Donating appreciated stocks also complements use of a donor-advised fund.

"Either give the shares to a donor-advised account or directly to a nonprofit organization, as advised by Goodridge," said Goodridge.

3.Make qualified charitable distributions

According to Cohn, a qualified charitable distribution (QCD) is a direct transfer from an individual retirement account or 401(k) to a charity.

RMDs from retirement accounts can be fulfilled with a QCD, which helps retirees satisfy their RMD while avoiding counting the transfer towards their adjusted gross income.

As provisions in the Tax Cuts and Jobs Act "sunset" by the end of 2025, most laws around charitable giving may change.

The upcoming election is crucial as its outcome will significantly impact taxes and charitable giving in the long run.