By Dalton Atchison

Most guides to tax planning focus only on reducing taxes. However, if you’re like most of our clients, lowering taxes isn’t your only objective. You also want to increase your Kingdom impact by making a positive difference in the world.

Faith-aligned tax planning looks a little different for everyone. But if you’re striving to make values-driven money decisions, these strategies for reducing taxes may help lower your tax liability while honoring God’s will.

Qualified Charitable Distributions 

Kingdom financial planning involves using your wealth to fulfill God’s purpose. This can take many different forms, but one potential tool is qualified charitable distributions (QCDs), which help you use your wealth more effectively while reducing taxes. 

If you are 73 or older, you may have started taking required minimum distributions (RMDs) from your tax-deferred retirement accounts. 

Failing to do this can lead to hefty tax penalties. However, taking RMDs can affect your wealth by:

• Pushing you into a higher tax bracket
• Forcing you to liquidate during market downturns
• Increasing Medicare premiums

If you don’t need to rely on your RMDs to support your retirement, you may use QCDs to lower your tax burden while supporting a charitable organization. 

To make a QCD, you must directly transfer funds from an IRA to a 501(c)(3) organization. In 2026, you may transfer up to $111,000. This distribution satisfies RMD rules, and it can also help with reducing taxes because it is not counted as income.

Charitable Deductions

If you’re looking for more strategies for reducing taxes, consider taking advantage of available charitable deductions. The passage of the One Big Beautiful Bill Act in 2025

introduced several changes to the tax code, including provisions surrounding charitable giving. 

For instance, if you itemize deductions, a new 0.5% AGI floor applies. This means you may only deduct charitable donations in excess of 0.5% of your adjusted gross income (AGI).

However, the law also opens up opportunities for even more generous giving. If you itemize deductions, you may deduct cash gifts to 501(c)(3) charities up to 60% of your AGI.

Charitable Remainder Trusts

If you’re interested in reducing taxes through an up-front tax deduction, a charitable remainder trust (CRT) may be right for you. CRTs allow you to gift stocks and other appreciating assets to charity without incurring income tax. 

Here’s a general rundown of how they work:

• You create and fund the trust.
• You receive an immediate tax deduction.
• Trust assets are removed from your taxable estate.
• Assets in the trust pay you (or a beneficiary) an income stream for a set period of time.
• After that period has ended, assets in the trust go to a charity of your choice.

Because you or your beneficiary can receive an income stream from the trust, you can take advantage of a partial tax deduction when you fund it. If you want to use a CRT for reducing taxes, we can help you understand the value of the tax deduction you might receive.

Get Faith-Aligned Help With Reducing Taxes

At Mountain PEAK Wealth Advisors, we’re on the same journey you are. We understand that ultimately, everything belongs to God. That’s why we strive to act as faithful stewards of wealth and help our clients do the same.

Because reducing taxes limits what you have to pay to the government, it allows you to use more of your wealth to drive positive change. Want to learn more about our mission and how we may be able to help you? Get in touch today.

If you’re ready to work with a Christian financial advisor who puts your best interests first, offers a personalized, fee-only approach, and integrates a values-driven perspective into every decision, I invite you to reach out. To schedule a meeting, call (260) 435-1200 or email jeff@mountainpeakwealthadvisors.com. 

Frequently Asked Questions

How can charitable giving help with reducing taxes?

Charitable giving can be an effective strategy for reducing taxes while supporting causes you care about. Donations to qualified charities may be tax-deductible if you itemize deductions, and gifting appreciated assets such as stocks can help you avoid capital gains taxes on the growth. For individuals who want their finances to reflect their faith and values, charitable strategies can also increase the impact of their giving.

What is a qualified charitable distribution (QCD) and how does it reduce taxes?

A qualified charitable distribution allows individuals age 73 or older to transfer money directly from an IRA to a qualified charitable organization. The amount transferred can count toward required minimum distributions but is not included as taxable income. This approach can help with reducing taxes while supporting charitable organizations that align with your personal or faith-based values.

How can a financial advisor help with reducing taxes while supporting charitable goals?

A financial advisor can help coordinate tax strategies with charitable giving, retirement withdrawals, and long-term financial planning. By aligning tax planning with faith-based priorities, advisors can help your financial strategy support both your stewardship goals and your long-term financial well-being. If you’re looking for a financial advisor who works with clients who want to reduce taxes while making a meaningful Kingdom impact, Mountain PEAK Wealth Advisors in Fort Wayne, Indiana, can help.

About Dalton

Dalton Atchison, CFP®, CKA®, CRPC®, is an Associate Wealth Advisor at Mountain PEAK Wealth Advisors in Fort Wayne, Indiana. Since joining the team in 2017, he has earned multiple professional certifications, including the CERTIFIED FINANCIAL PLANNER® certification, the Chartered Retirement Planning Counselor™ designation, and the Certified Kingdom Advisor® certification. As a Certified Kingdom Advisor®, Dalton manages clients’ resources with both prudence and purpose and focuses on helping them integrate their Christian values into their financial decision-making. His approachable style makes financial planning accessible and understandable, even for complex situations. 

Dalton received his undergraduate degree from the University of Indianapolis, graduating summa cum laude with a major in business administration and a minor in photography. In his free time, he enjoys running and spending quality time with his wife, Emily, and their family. To learn more about Dalton, connect with him on LinkedIn.