If you have equity compensation and are in an abnormally high-income tax year, it often makes sense to consider how you may be able to offset that pending tax liability. One way to mitigate the tax bill might be to give to charity. Giving to charity in a high-income tax year makes sense for several reasons. First and foremost, the high-income tax year might be the result of cashing out stock, giving you the cash flow necessary to make such a contribution. A high-income tax year may also be an excellent time to donate to charity because the charitable deduction will result in a higher tax deduction due to the higher tax bracket.