Recent research underscores just how pronounced this divide is becoming. Individuals with a net worth of $30 million or more, often referred to as ultra-high-net-worth donors, are playing an increasingly outsized role in philanthropy, accounting for a significant and growing share of total charitable giving. At the same time, policy changes are encouraging broader participation at the other end of the spectrum, bringing new donors into the fold even if their initial gifts are modest. The result is a philanthropic landscape that is simultaneously becoming more concentrated and more expansive.

For your ultra-high-net-worth clients, charitable giving is rarely about a single transaction. Instead, it is often deeply integrated into long-term planning around wealth transfer, business succession, and family legacy. These clients may be evaluating complex assets, timing considerations, and multigenerational involvement. Conversations tend to focus on strategy: how philanthropy aligns with identity, values, and long-term impact. The Wayne County Foundation can help you navigate these discussions by offering flexible structures, local insight, and support for engaging the next generation in meaningful ways.

By contrast, clients earlier in their wealth-building years, including the children and grandchildren of ultra-high-net-worth clients, may engage in charitable giving in a more incremental and exploratory way. The availability of a charitable deduction for non-itemizers creates a new opportunity to introduce philanthropy as part of their financial lives sooner than in the past. For these clients, the focus is often on establishing habits, identifying causes, and understanding how giving fits alongside other priorities. Even relatively small gifts can serve as the foundation for lifelong philanthropic engagement. (Note that the new deduction for non-itemizers applies only to cash gifts and is not available for gifts to donor advised funds.) 

These two groups are not just separated by wealth; they operate under different incentives, planning horizons, and motivations. As a trusted advisor, recognizing these distinctions can help you tailor your conversations and add value in more meaningful ways. Some clients may benefit from sophisticated planning strategies, while others simply need a clear and accessible entry point.

Here is one final but important point: Regardless of whether a client itemizes or doesn’t itemize, pay close attention to clients who are age 70 ½ and over and who own IRAs. Qualified Charitable Distributions are a powerful and tax-advantaged tool for clients to transfer up to $111,000 per taxpayer (2026 limit) to support favorite causes. What’s more, proposed legislation may open the door for your clients to use QCDs to fund their donor advised funds at the Wayne County Foundation. Right now, clients can use QCDs to fund field of interest, unrestricted funds, and certain other types of funds at the Foundation, but not donor advised funds.    

As always, the Wayne County Foundation is here to support both ends of this spectrum. Whether your client is structuring a complex gift involving closely held assets or taking the first steps toward organized charitable giving, our team can help you identify the right approach. We are honored to be your partner in serving your charitable clients across every stage of their philanthropy journey.

Consider this scenario.

When David and Laura arrive at your office for their annual planning meeting, the tone feels different from prior years. In their early 70s and recently retired, David and Laura have always approached financial decisions with a long-term mindset. But today, Laura opens the conversation with a note of concern.

“We’re not panicking,” she says, “but it’s hard to ignore what’s going on in the markets. It just feels unsettled.”

You nod. You’ve been hearing similar sentiments from many clients. Even when portfolios remain relatively strong, uncertainty alone can create stress. Studies have consistently shown that financial concerns weigh heavily on emotional well-being across generations, and market volatility tends to amplify those feelings.

As you walk through David and Laura’s portfolio and estate plan, the numbers tell a reassuring story. Their overall financial plan is still on track, and their estate plan still reflects their goals. But you recognize that this moment calls for more than reassurance. It’s an opportunity to reframe how charitable giving fits into the broader picture.

“You’ve both been incredibly consistent in your support of local organizations,” you say. “Tell me how you’re feeling about giving this year.”

David pauses. “We still want to give,” he says. “We just don’t want to make a mistake if the market gets worse.”

That hesitation is familiar. Rather than pulling back entirely, many clients simply need a way to move forward with confidence.

You start with a simple reminder.

“Not all stocks are down.”

You point to a portion of their portfolio that has performed well over time. These appreciated positions present an opportunity. By contributing long-term appreciated stock to their donor advised fund at the Wayne County Foundation, David and Laura may be able to avoid capital gains tax while supporting the causes they care about. Even in a volatile market, this strategy remains one of the most efficient ways to give.

Laura leans in. “So even now, that still makes sense?”

“It often does,” you reply. “And it can give you flexibility. You can make the gift now, receive the tax benefits, and then take your time recommending grants.”

The conversation begins to shift. Instead of focusing solely on uncertainty, David and Laura are now thinking about options.

You also gently raise another point.

“Market cycles come and go, but community needs don’t pause.”

You explain that periods of economic strain often increase demand for nonprofit services, particularly for households already feeling the effects of inflation and rising costs. The Foundation is closely connected to these needs and can help ensure that their giving is as impactful as possible.

Finally, you mention a strategy they have not yet used.

“Because you’re both over 70 ½, we should also look at Qualified Charitable Distributions from your IRAs.”

You walk them through how a QCD could satisfy required minimum distributions while avoiding income tax on those amounts. For clients in their stage of life, it’s a straightforward and effective way to continue supporting charitable priorities regardless of market conditions. “You can direct your QCDs to certain types of funds at the Wayne County Foundation,” you explain. “You can’t use them to add to your donor advised fund (at least not yet), but you can support the Foundation’s strategic priorities to help the whole region thrive.” 

By the end of the meeting, David and Laura feel a renewed sense of clarity. They decide to move forward with a gift of appreciated stock to a donor advised fund and explore a QCD over the summer to avoid the year-end rush. Just as importantly, they feel reassured that their charitable giving does not need to stop simply because the market feels uncertain.

Situations like this are increasingly common. Even the possibility of a downturn can shape client behavior, but it can also open the door to meaningful planning conversations and help keep charitable giving going strong across our community. As always, the Wayne County Foundation is here to help you navigate these discussions, offering practical strategies, local insight, and support for your clients’ charitable goals in every type of market environment.

You may already be familiar with the general benefits of a donor advised fund. A donor advised fund can reduce administrative responsibilities, eliminate many of the complex tax compliance requirements, and allow families to focus more fully on their charitable goals rather than ongoing operations. The technical mechanics of making the transition are also relatively straightforward, such as:

• Confirm that the private foundation’s board has approved the termination and documented the decision appropriately.
• Establish a donor advised fund at the Foundation, often structured to mirror the private foundation’s name and governance approach.
• Grant the bulk of the private foundation’s remaining assets to the new fund, leaving a reserve to cover final expenses.
• Satisfy outstanding liabilities and complete the private foundation’s final tax filings and state-level dissolution requirements.

While these steps are important, the transition is ultimately about more than mechanics. It’s an opportunity to reposition the family’s philanthropy for the future, reducing administrative friction while preserving, and in many cases enhancing, the impact of the family’s giving.

One aspect of the transition deserves particular attention because it is easy to overlook: communication with grantees. For many private foundations, relationships with nonprofit organizations have developed over years, sometimes decades. In some cases, grantees may rely on annual or recurring support. 

When a private foundation winds down, a lack of clear communication can create confusion or uncertainty for the organizations that have come to depend on that funding. As a trusted advisor, you can play an important role in helping your client plan for this transition thoughtfully. What’s more, the Wayne County Foundation can serve as a sounding board. Our team has close relationships with hundreds of nonprofit organizations in our community. Here are five tips for a client’s communication plan that you can help develop with the support of the Foundation team:

• Encourage your client to communicate early and clearly with key grantees. Your client does not want nonprofits to hear about the transition from anyone else. 
• The communication itself does not need to be complicated. A straightforward email message explaining that the private foundation is transitioning to a donor advised fund and that the family remains committed to charitable giving can go a long way. 
• Importantly, if possible, the client should reach out personally to each nonprofit grantee to let them know that they will be receiving email communication. This is not just a nice touch; it is a powerful way to maintain and deepen trust. 
• If the client intends to continue supporting certain organizations, it is helpful to reassure those nonprofits that future grants may be recommended through the Wayne County Foundation. 
• Messages can also affirm the mission of the Foundation and the broader resources and network it provides to both your clients and the nonprofits they’ve supported for many years. 

As always, the Wayne County Foundation is here to help you and your clients navigate both the technical and relational aspects of this process. Whether your client is ready to move forward now or simply beginning to explore options, our team is honored to work alongside you to ensure a smooth and thoughtful transition to support your clients’ charitable objectives.

Here’s a case study to illustrate a scenario similar to what you might experience in your own practice.

When Mark and Elaine come into your office to update their estate and financial plans, retirement is only part of the future picture they’d like to discuss. At 66 and 64, they are financially secure, but the larger question is the future of the family business. After three decades of ownership, they are beginning to explore selling the business within the next few years.

The first part of your conversation is very familiar: income projections, portfolio sustainability, and how the family business’s corporate structure could evolve to allow Mark and Elaine to step back from day-to-day operations. If you are their financial advisor or CPA, you might run the models, stress-test assumptions, and outline what taxes and retirement could look like if a liquidity event occurs. If you are their estate planning attorney, you might review the company’s legal structure and emergency transition plans. 

In any case, you know the numbers are strong. A sale would more than fund Mark and Elaine’s lifetime needs. But as your conversation deepens, a more complex issue surfaces: what does succession look like? Not just operationally, but reputationally and relationally?

“Our two adult children are not active in the business,” says Mark. “A third-party sale is inevitable, and we are fine with that financially, but it’s a gut punch emotionally.” A concerned expression crosses Mark’s face as he considers his feelings about a sale to non-family members. “The company’s name carries a lot of weight in the community,” he says. “For years, the business has been closely associated with the family’s identity and local impact. So what happens to that identity if we sell?” Mark wonders aloud.

Elaine’s concern is more inward-facing. “I really want our children to stay aligned after a liquidity event. For so many years, company events and trips have been where we’ve all gathered. I hate to think of that ‘glue’ disappearing in an instant.” Elaine says she has seen other families fracture after a business sale. “They barely see each other anymore,” she remarks.

This is where you introduce a broader planning lens. You validate that a business sale is not only a financial event, but it’s also deeply personal and public at the same time. “How the family positions itself before, during, and after that transition can shape both community legitimacy and internal unity for decades,” you say. “So you both are spot on with your concerns.”

You suggest that philanthropy, structured intentionally before a sale, can serve as a bridge. What you mean is that Mark and Elaine could explore the option to transfer shares in the business to a donor advised fund at the Wayne County Foundation, well in advance of any potential transaction. Then, when the business is sold, a portion of the proceeds lands in the donor advised fund.

The tax advantages of the transaction are meaningful. By donating a portion of closely held stock before a legally binding sale process begins, Mark and Elaine are eligible for an income tax deduction, subject to AGI limitations, based on the stock’s fair market value at the time of the gift. Later, when the business is sold, the proceeds on the shares held by the donor advised fund are not subject to capital gains tax.

Still, you emphasize that tax efficiency is only one layer.

Creating a donor advised fund before the sale allows the family, working together, to articulate a charitable mission while the business is still operating. It signals continuity: although ownership may change, the family’s commitment to the community does not.

You suggest to Mark and Elaine that the Foundation team join the next meeting. Of course, you remain responsible for facilitating the transaction and coordinating with other advisors. But the Wayne County Foundation’s philanthropic advisors can facilitate conversations that go beyond the corporate, legal, financial, and tax aspects, leading a dialogue focused on questions that will shape the family’s philanthropy plan, such as:

• What causes reflect the values that built the business?
• How should the family’s name be represented post-sale?
• What governance structure will guide the next generation’s involvement?

You also share with Mark and Elaine that the Foundation can host structured family meetings, provide community needs assessments, and introduce best practices for multigenerational philanthropy. Importantly, this gives the children a meaningful role before liquidity occurs. Instead of simply awaiting proceeds, they begin working together to recommend grants, evaluate impact, and represent the family publicly.

In effect, philanthropy becomes a training ground for shared decision-making without the operational risk of running a company.

Mark and Elaine love this suggestion. “Let’s do it,” Elaine says. “This plan makes us feel like a future sale is less like an ending and more like a pivot.” 

Mark and Elaine’s situation is one of many examples of cases where a family business may eventually change hands. But through an intentional philanthropic structure designed in coordination with the Foundation, the family’s influence, values, and unity continue. Please reach out to our team anytime. It is our pleasure to help you serve your charitable clients through all stages of their lives.

In two recent rulings, the underlying message is consistent: Courts and the IRS continue to apply the technical requirements governing charitable deductions with precision. Your clients’ good intentions are not enough. 

Strict substantiation: A familiar but critical reminder

Gibson v. Commissionerserves as yet another reminder that it is crucial for your clients to substantiate their charitable deductions. Time and again, both the IRS and the Tax Court have disallowed a taxpayer’s deduction because rules were not followed. In Gibson, a married couple claimed nearly $194,000 in noncash charitable contributions related to donated personal property. The court did not dispute that tangible items were transferred to a charitable organization. Instead, the deduction failed because the taxpayers did not satisfy the detailed substantiation requirements—specifically, contemporaneous written acknowledgments and qualified appraisal standards.

No matter how strong a client’s desire to make a difference through charitable donations, technical compliance drives deductibility. Form 8283 thresholds, appraisal rules, and acknowledgment language are not administrative formalities; they are statutory requirements. The Gibson case provides a practical example to share with clients who may be inclined to “drop off” significant in-kind gifts without first consulting their advisory team. 

Here’s the key takeaway: Even though you as an attorney, CPA, or financial advisor may fully understand the importance of following the rules, you still need to remind your clients regularly. You don’t want a client to ask, “Why didn’t you tell us?” when they learn the hard way that they should have kept better records. 

Exempt status is not forever

The lesson in Milk Saving Starving Children Foundation v. Commissioner is that if you say you’ve got milk, you’d better have milk! In Milk, the Tax Court upheld the IRS’s revocation of 501(c)(3) status for an organization that failed to operate exclusively for charitable purposes and conferred impermissible private benefits. The organization’s stated mission, to distribute milk, was in fact charitable. Over time, though, its operations drifted away from distributing milk to operating a coffee shop and hosting a golf tournament. 

Here’s why we’re sharing this case:

• The Tax Court’s written opinion in Milk provides a terrific overview of the legal principles behind one of the cornerstones of tax-exempt status: a charity’s ongoing activities must further its exempt purposes. As you bring new attorneys, CPAs, and financial advisors into your practice, the Milk case is simply terrific for training purposes. 
• As it applies to your client work, remember the Milk case when a client expresses interest in supporting a lesser-known or newly formed organization. Please reach out to the Foundation in these instances, as our team can provide insight on any charitable organization, whether well-established or new, and offer safeguards through field of interest funds and other vehicles.

Thank you for the opportunity to work together to serve your charitable clients! Our goal, as always, is to serve as a practical resource, helping you ensure that your clients’ charitable intentions are fulfilled with clarity, compliance, and confidence.

March is an especially good time to reflect on the evolving role of women in philanthropy because it’s Women’s History Month. Increasingly, women are leading charitable decisions in their families, especially as more women are serving as primary financial decision-makers, according to Indiana University’s Lilly Family School of Philanthropy’s Women Give 2024: 20 Years of Gender & Giving Trends. 

Many scenarios are driving this change, including:

• In many families, as the study indicates, a leadership shift happens gradually. For example, a daughter becomes more engaged over the years in conversations about the family’s charitable giving. Or a spouse who once deferred philanthropic decisions begins to shape priorities more directly. 
• In other cases, according to the research, the transition is sudden and deeply personal, often following the death of a spouse or parent, when a woman assumes sole responsibility for stewarding both financial assets and charitable intent.
• In many cases, women are building wealth through their own careers or entrepreneurial ventures and bringing a deeply personal approach to philanthropy. For example, a business owner who has grown a successful company may establish giving priorities that reflect her values, lived experiences, and the communities that supported her along the way.
• Other women are emerging as philanthropic leaders through professional success in fields such as medicine, law, technology, or finance. As primary earners, they are proactively shaping charitable strategies—often seeking to align their giving with both personal passions and measurable community impact.
• A growing number of next-generation women are also creating wealth earlier in life and choosing to engage in philanthropy sooner. Whether through startups, investments, or leadership roles, they are not only contributing financially but also bringing fresh perspectives, collaborative approaches, and a strong desire to see tangible results from their giving.

Here are four examples of how your awareness of these trends can play out in your day-to-day practice:

Help your clients give through thick and thin.

According to the Women Give 2024 study, over the past two decades, single women experienced a smaller decline in charitable participation than single men, and their average giving amounts held steadier or increased in certain contexts (e.g., secular causes during COVID-19). Be aware of this trend as you represent single women; it may be a priority for them to continue giving even when times are tough. The Foundation can help you develop a charitable giving plan to enable women-led philanthropy to continue through life’s ups and downs.

Discuss national trends and local needs. 

According to the Women’s Philanthropy Institute at Indiana University’s Lilly Family School of Philanthropy, for the first time, between 2022 and 2023, giving to women’s and girls’ organizations surpassed 2% of overall charitable giving. This represents over $11 billion going to women’s and girls’ organizations each year. Note, however, that when adjusted for inflation, the amount actually declined between 2021 and 2023. This trend is worth mentioning to clients, especially with the help of the Foundation team to share parallel local trends and opportunities to make an impact.

Ask about all forms of philanthropy.

According to the 2025 Bank of America Study of Philanthropy: Charitable Giving by Affluent Households, 43% of affluent households volunteered in 2024, up from 37% in 2022. Volunteers tend to give more and support causes more deeply, a pattern often stronger among women. Be sure to ask your female clients about causes they support both financially and through volunteerism. 

Tailor advice for single women.

Research shows that participation trends vary by household type, with single women maintaining more consistent giving patterns over long periods. Pay particular attention to building thoughtful charitable giving plans for single-woman households. The Wayne County Foundation can help maximize both impact and financial planning goals as you serve these clients.

As is the case when you are working with any charitable client, our team is honored to be your partner. Whether your client is establishing a new structure, building a comprehensive strategy around an existing donor-advised or other type of fund, or navigating inherited philanthropic responsibilities, we are here to help ensure their giving reflects both enduring legacy and evolving purpose.

Research and survey results tell us that many clients’ most consequential estate and financial planning activities arise not from long-term intentions, but from sudden change. Moments like this are challenging because clients are often overwhelmed and unsure how to proceed, and even the best advice can feel like too much information delivered too soon. In these situations, be aware that charitable planning can help re-anchor clients’ decision-making in values rather than fear or urgency. For many clients, generosity is one of the few topics that still feels familiar when everything else is shifting. 

Here are three examples:

Change in assets

Following a divorce settlement, a client may suddenly be holding cash, concentrated stock, or other highly appreciated assets. The client may also be juggling other priorities: adjusting lifestyle expectations, supporting adult children, and rethinking an estate plan. When the client also wants to do something charitable but isn’t sure yet what organizations to support, setting up a donor advised fund at the Wayne County Foundation can be a natural fit in some cases, allowing the client to be eligible for a tax deduction when the contribution is made while taking time to decide which charities to support and when.

Loss of a spouse 

A client whose spouse has recently passed away may want to make a charitable gift in the spouse’s memory, but likes the idea that the gift could benefit the community for many generations and address urgent needs that arise decades from now. Setting up an unrestricted fund at the Foundation allows a client to support evolving community needs over time as well as support the mission of the Foundation itself. 

Retirement

A 74-year-old client who just retired is feeling less “relevant” outside of the workforce, and therefore would like to do something meaningful for the community. With plenty of assets in retirement accounts, the client does not need to rely on distributions from IRAs to maintain lifestyle standards. This client could be a good candidate to establish a designated fund (to support a specific nonprofit organization) or a field-of-interest fund (to support an area of need such as education, health care, or the arts) at the Foundation. Then, the client may direct Qualified Charitable Distributions from IRAs (up to $111,000 per taxpayer in 2026) to the fund, bypassing adjusted gross income and counting toward required minimum distributions.  The Foundation is happy to help.

Next time you are meeting with a client who is experiencing one of life’s inevitable rough patches, remember that charitable planning allows your client to take action that brings joy, reflects identity, aligns with purpose, and helps the client shift from a reactive mode to an intentional one.

Well before 2025 made way for 2026, you were probably already tracking the various IRS thresholds that are subject to adjustment, as well as the impact new tax laws will have on planning techniques. But have you thought about how each of these thresholds might relate to your clients’ charitable giving? Here are pointers to keep handy as you inform your clients about changes in 2026 and help them prepare their charitable giving plans for the coming year.

Social Security COLA increases

The Social Security Administration announced a cost-of-living adjustment (COLA) increase effective January 1, 2026. This increase reflects inflation’s trajectory and affects many retirees who also engage in philanthropy.

Why this is relevant to charitable giving: Retirees are a unique group when it comes to tools and techniques related to charitable giving. Given that a high percentage of older cohorts give to charity each year, discussing your clients’ Social Security benefits is a logical juncture to also establish charitable giving plans for 2026 and beyond.

Standard deduction increases

For tax year 2026, the standard deduction increased to $16,100 for single taxpayers, $24,150 for heads of households, and $32,200 for married couples filing jointly.

Why this is relevant to charitable giving: The standard deduction is a key factor in charitable giving strategies. If a client’s total itemized deductions, including charitable gifts, exceed the standard deduction, they are eligible to itemize. Reviewing this threshold and considering a “bunching” strategy (accelerating multiple years of giving into one tax year) can help maximize charitable support through 2026 and beyond.

Tax brackets

Though the tax rates remain at a range from 10% to 37%, the income levels that define each bracket for 2026 have shifted.

Why this is relevant to charitable giving: Examining tax brackets with clients presents a timely opportunity to discuss their charitable giving strategies. With the new limitations on itemized deductions that took effect in 2026 (specifically the 0.5% floor and the 35% cap), it’s important to help clients plan carefully so that their philanthropy remains tax efficient.

Qualified Charitable Distributions (QCDs)

For tax year 2026, the per-taxpayer limit for Qualified Charitable Distributions (QCDs) has been increased for inflation to $111,000, up from $108,000 in 2025. And, the limit for a one-time QCD from an IRA to a split-interest vehicle has been adjusted for inflation to $55,000, up from $54,000.

Why this is relevant to charitable giving: Because clients age 70 ½ or older can direct IRA distributions to charity without including them in taxable income (a “Qualified Charitable Distribution”), these clients can reduce their AGI and, if applicable, satisfy all or part of their required minimum distributions (RMDs). A QCD to a qualified fund at the Foundation (such as a designated or field of interest fund, but not a donor advised fund) remains one of the most tax-efficient ways to support charity.

Non-itemizer charitable deductions

Beginning with tax year 2026, a single-filer taxpayer who does not itemize deductions will be allowed to deduct up to $1,000 in cash donations to qualified charities (excluding donor advised funds and private foundations). Non-itemizing joint filers may deduct up to $2,000.

Why this is relevant to charitable giving: Despite the relative inflexibility of the new deduction (e.g., gifts of appreciated stock don’t count, and neither do gifts to donor advised funds), this provision for non-itemizers could help encourage people to begin their charitable giving journey, especially in the case of young professionals. To that end, you might consider mentioning this new deduction to your high-income earner clients who have adult children. The Foundation can help by offering fund options, other than donor advised funds, to receive the $1000 or $2000 gifts, as well as offer opportunities for family learning and hands-on involvement.

As 2026 gets well underway, please reach out to the Wayne County Foundation team! We are honored to be your first call on all matters related to charitable giving. Thank you for the opportunity to help you serve your clients!

For many CPAs, estate planning attorneys, and financial advisors, the end of 2025 brought a whirlwind of charitable planning activity among high-earner clients. That’s because many taxpayers wanted to maximize the tax benefits of their charitable donations before the 0.5% “floor” and 35% “cap” on charitable deductions kicked in on January 1, 2026, under new tax laws. Donor advised funds (DAFs) in particular played a big role in many late 2025 planning strategies, as affected taxpayers could transfer assets to a DAF in 2025, achieve optimal tax results, and then thoughtfully recommend grants to favorite charities from the DAF in 2026 and beyond.

So what now? Should you still recommend that your clients establish and use DAFs at the Wayne County Foundation to organize their charitable giving?

Absolutely yes! DAFs remain a highly relevant and strategic tool for your clients. The IRS’s new deductibility limits may reduce the marginal tax benefit of giving for some of your clients, but nothing has changed about the DAF’s broader planning advantages for all of your charitable clients. Here’s why:

–Fundamentally, regardless of tax benefits, your clients’ charitable intent is driven by values, legacy, and a desire for community impact. That’s why you want to offer your clients the most effective charitable planning vehicles available to achieve charitable goals. A DAF at the Foundation often plays a crucial role in a client’s overall philanthropy structure. Here’s why:

–A DAF still allows clients to separate the timing of their charitable deduction from the timing of their actual grants to favorite charities, thereby preserving flexibility in years when income is unusually high or coming in handy when planning around liquidity events, even if the deduction is partially constrained under new laws.

–DAFs held at the Wayne County Foundation provide benefits that extend well beyond the tax code. That’s because of our team’s local expertise, deep knowledge of regional nonprofits, and ability to help your clients align their giving with real community needs.

–When you work with the Foundation, you can confidently recommend a DAF because you know the client will receive administrative simplicity, top-notch service, and plenty of opportunities for deep community connections and multigenerational philanthropy.

In short, DAFs at the Foundation support your clients’ wealth and legacy planning goals. The Foundation makes it easy for you, as the advisor, to integrate a DAF into a client’s estate plan, use a DAF to smooth charitable giving over time as a client’s income ebbs and flows, and lean on the DAF as a platform for strategic philanthropy that can evolve alongside a client’s unique life and financial circumstances.

If you know the basics of Qualified Charitable Distributions (QCDs) but have a hard time envisioning exactly what to say and do when they come up in a client conversation, you’re not alone. Whether you’re an attorney, CPA, or financial advisor, at some point you will find yourself in the middle of a QCD conversation. Here’s a case study to help you be prepared.

Margaret, a 74-year-old widow and longtime client of your practice, scheduled a meeting early in the year to discuss her charitable giving plans. In the email Margaret sent to set up the meeting, she mentioned that she was now taking required minimum distributions from her IRA, and her taxable income was higher than she expected or needed.

As you reviewed Margaret’s file before the meeting, you were reminded that Margaret had established a donor advised fund at the Wayne County Foundation several years ago. You recall from prior conversations that Margaret not only has enjoyed using the donor advised fund to organize her charitable giving to dozens of favorite charities, but she’s also appreciated the many opportunities to tap into the Foundation’s events and educational opportunities.

Margaret arrived at your office, and after catching up, Margaret said, “I’ve read about this thing called a Qualified Charitable Distribution. If I’m going to give to charity anyway, I want to understand whether doing a QCD in 2026 makes sense, especially if I want the gift to go through the Foundation where I already do all of my giving.”

You nod and explain that a QCD does indeed allow individuals like her who are age 70 ½ or older to transfer funds directly from an IRA to a qualified charity without including that amount in taxable income. You mention that this can be especially powerful after age 73, when required minimum distributions begin, because the QCD can satisfy all or part of the RMD while keeping adjusted gross income lower. “This can help address Medicare premiums, taxation of Social Security, and overall tax efficiency,” you continue. “With the annual QCD limit increasing through inflation adjustments to $111,000 in 2026, it’s a timely strategy to consider.”

Margaret was glad to hear all of this. Then she asked, “I already have a donor advised fund at the Foundation. Can I simply direct my QCD straight into that fund?” You are prepared for this question, as it’s a common point of confusion. “That’s a great question, and you’re not alone in asking it,” you reply. “Under current IRS rules, unfortunately, QCDs can’t be made to donor advised funds, even if they’re housed at a community foundation.”

Seeing her puzzled expression, you continue with a broader explanation. “QCDs are limited to certain types of charitable recipients,” you say. “They can go directly to public charities that are operating nonprofits, and in limited cases to certain split-interest arrangements like a charitable gift annuity or a charitable remainder trust, subject to specific rules. Donor advised funds are excluded, evidently because the IRS does not want the money to flow into an account where the taxpayer retains advisory privileges. Donor advised funds are entirely dedicated to charity, so the rule does not make a lot of sense. Yet here we are.”

Margaret frowned slightly. “That feels frustrating,” she said. “I love the donor advised fund because it gives me flexibility and lets me support multiple causes over time.” You acknowledged her concern. “I understand. The good news, though,” you say, “is that the Foundation offers other types of funds that do qualify for QCDs and can still accomplish many of the same goals.”

You go on to explain that instead of directing the QCD to her donor advised fund, Margaret could direct the QCD to a designated fund at the Foundation that supports specific charities she already knows she wants to help, or to a field of interest fund focused on causes she cares about deeply, such as education or the arts, or to an unrestricted fund to support the community as a whole. “Those types of funds are fully managed by the Foundation, without your advisory role after setup,” you say, “which makes them eligible recipients of a QCD while still aligning with your charitable intentions.”

Margaret paused, considering the options. “I don’t want to make the wrong choice,” she said. “I also want to be sure the fund is set up properly and really reflects what I care about.” You agree that is where collaboration matters most. “This is where I’d recommend looping in the Foundation,” you say. “They can help us think through which type of fund fits best, provide a fund agreement document, and enable me to fulfill my professional duty to ensure that the structure complies with QCD rules.”

You go on to suggest a joint meeting with a Foundation representative. “The Foundation knows the nuances of the fund options and the local charitable landscape,” you explain. “That’s a great match for the legal and tax obligations on my side of the transaction. Together we can help ensure that your QCD in 2026 is clean, compliant, and aligned with your values.” Margaret smiled, clearly relieved. “That makes sense,” she said. “I don’t want this to be just about taxes. I want it to be meaningful.”

By the end of the meeting, you and Margaret have agreed on next steps: you said you would review Margaret’s IRA custodian requirements for executing a QCD, and the Foundation will set up a fund to receive the distribution. The plan will allow Margaret to use her required minimum distribution to support the community she loves, reduce her taxable income, and create a charitable structure she feels confident about.

As Margaret leaves your office, you can tell that she feels reassured that she doesn’t have to navigate the rules alone. The conversation had clarified not only why a QCD in 2026 made sense for her financially, but also why working collaboratively with you and the Foundation was essential. Together, you and the Foundation can turn a confusing tax rule into a thoughtful charitable strategy that supports both Margaret’s personal financial goals and the broader community she intends to impact.

If Margaret’s situation sounds familiar, or if you anticipate any type of charitable giving conversation with a client, the Foundation is here for you! We are always happy to collaborate as you explore solutions to achieve your clients’ charitable goals. In nearly every situation, we can help. At the very least, we will point you in the right direction. Thank you for the opportunity to work together!

Pro Tip

As you talk with clients over the coming weeks, keep in mind that tax laws are always subject to change, and sometimes for the better. Case in point related to Margaret’s situation? A small, bipartisan tax law change has been proposed that would allow Qualified Charitable Distributions into donor advised funds. Fingers crossed!