January 2026 Professional Advisor News

It’s a new year, and it is not lost on estate planning attorneys, financial advisors, and CPAs that the dawn of 2026 brings several changes to tax laws that could impact the way your clients structure their charitable giving. The following is a list of FAQs to get up to speed on what you need to know to serve your philanthropic clients over the coming months.

Why should advisors be aware of 2026 tax changes for charitable giving conversations?
As advisors track annual IRS adjustments and new tax laws, charitable giving is often addressed separately—or later, if at all. However, many of the threshold changes in 2026 directly influence how, when, and why clients give. Viewing these updates through a philanthropic lens allows you to provide more holistic guidance and helps your clients align tax planning with personal values, passions, and community impact early in the year.

How does the 2026 Social Security COLA increase relate to charitable giving?
The Social Security Administration’s cost-of-living adjustment effective January 1, 2026, reflects inflation and affects many retirees’ cash flow. Because older clients are traditionally among the most consistent charitable donors, conversations about updated Social Security benefits present a natural opportunity to revisit charitable intentions. Discussing philanthropy alongside retirement income can help clients plan sustainable giving strategies for 2026 and beyond.

What do higher standard deductions mean for charitable giving strategies in 2026?
For tax year 2026, the standard deduction rose to $16,100 for single filers, $24,150 for heads of households, and $32,200 for married couples filing jointly. These increases make it less likely that some clients will itemize. Reviewing these thresholds with clients creates an opening to discuss strategies such as “bunching” charitable gifts into a single tax year to exceed the standard deduction, potentially increasing both tax efficiency and charitable impact.

Why do the adjusted 2026 tax brackets matter for philanthropy?
Although marginal tax rates still range from 10% to 37%, the income thresholds for each bracket have shifted for 2026. Reviewing brackets is an ideal time to revisit charitable giving, especially in light of the new limitations on itemized deductions. Thoughtful planning can help ensure that clients’ generosity remains aligned with both their financial goals and the evolving tax landscape.

What’s going on with limitations to itemized charitable deductions?
Starting in 2026, taxpayers who itemize can deduct charitable contributions only to the extent their total giving exceeds 0.5% of adjusted gross income (AGI)—meaning that the first 0.5% of AGI in donations effectively produces no charitable deduction. Also beginning in 2026, a new “cap” limits the value of itemized charitable deductions for top earners to 35%, meaning even taxpayers in the 37% bracket won’t receive a tax benefit higher than 35 cents per dollar donated. Together, the floor and cap generally reduce the tax leverage of itemized giving, making it more important for advisors to help clients plan gift timing and strategies to preserve tax efficiency where possible.

What’s new with Qualified Charitable Distributions (QCDs) in 2026?
For 2026, the per-taxpayer QCD limit increased to $111,000, and the one-time QCD limit to a split-interest vehicle rose to $55,000, both due to inflation adjustments. Clients who are age 70 ½ or older can continue to use QCDs to direct IRA distributions to charitable organizations without including them in taxable income, potentially reducing AGI and satisfying required minimum distributions. QCDs to qualified funds—such as designated, field-of-interest, or agency funds at a Community Foundation, though not donor-advised funds—remain one of the most tax-efficient charitable tools available.

How does the new non-itemizer charitable deduction affect giving?
Beginning in tax year 2026, a single-filer taxpayer who does not itemize may deduct up to $1,000 in cash donations to qualified charities, excluding donor-advised funds and private foundations. For joint filers, the cap is $2,000. While the deduction is limited and does not include gifts of stock and other appreciated assets, it may encourage new donors to begin their philanthropic journey. Advisors may find it helpful to mention this provision to high-income clients with adult children, especially because the Community Foundation can accept qualifying gifts and offer opportunities for family engagement and charitable education.

How can the Community Foundation support advisors and their clients in 2026?
As 2026 unfolds, the Community Foundation stands ready to partner with you on all aspects of charitable planning. From navigating new tax rules to aligning giving strategies with client values, interests, and community needs, our professional staff is honored to serve as your go-to for charitable expertise.

Whether you’re a CPA, financial advisor, or estate planning attorney, you’ve likely encountered at least a handful of clients over the years whose situation has been complicated by a concentrated stock position. You may have a vague sense that charitable giving techniques can help under these circumstances, but you are not exactly sure how it works, or even how to bring it up. Here is a case study to help paint the picture and allow you to be better prepared. And of course, our professional staff at GiveWell Community Foundation stands ready to help!  

When retired executive John arrives for his annual review meeting, you immediately notice the tension behind his easy smile—and you know the reason. At 68, John owns a substantial concentrated position in his former employer’s stock, representing well over half his investable assets. Although his career was remarkably successful and he retired with plenty of resources, over the last couple of years, John has become increasingly worried that so much of his future financial security is tied to the fortunes of a single company. He fears that a sharp downturn could jeopardize his retirement plans. His concern doesn’t stop there. Not only is John worried about market risk, but he is also well aware of the looming tax bill if he were to sell the stock. 

Of course, you, John, and John’s other advisors are aware that in general, having too large a portion of one company’s stock can expose an investor to significant volatility and downside risk, and that reducing a concentrated position over time can protect wealth without unduly eroding value. The challenge for most investors in this situation, however, just like John, is that selling a large block of any highly appreciated stock at market price could trigger a very large capital gains tax. It’s not unusual for this factor alone to prevent an investor from taking steps to diversify. This is exactly what’s going on with John, who admits that he knows diversification is wise but fears losing a large portion of his gains to taxes if he sold shares outright. 

This is where charitable giving comes in. You’ve worked with John for many years, and you know he regularly supports several favorite nonprofit organizations through his donor-advised fund at the Community Foundation. So you shift the conversation to philanthropy. His face lights up as he talks about the causes that are important to him, particularly supporting local education and health initiatives. 

At this point in the conversation, you explain that giving appreciated stock to his donor-advised fund could be one of the most tax-efficient ways for John to reduce his concentrated position, avoid capital gains tax, and still stay connected (in a non-controlling role) with the proceeds from the stock sale. This is because when a donor gifts appreciated shares to a qualified charitable organization, such as the Community Foundation, the donor generally avoids capital gains tax on the appreciation and may also claim a charitable deduction for the fair market value of the shares. This dual benefit helps with diversification while keeping more of the overall economic value working either for the donor’s retirement security or for charitable impact.

John is interested and asks how this would work with his donor-advised fund at the Community Foundation. You explain that the Community Foundation can accept gifts of appreciated stock into the donor-advised fund, turning ownership of the shares into charitable resources. You also emphasize that working with the Community Foundation would help ensure the gift is processed correctly and aligned with his philanthropic intent.

John looks puzzled and asks a thoughtful question: “Why can’t I just donate all the shares to my donor-advised fund right away and get the full deduction while reducing my concentration risk?” You clarify that while donor-advised funds at the Community Foundation indeed accept stock gifts, the timing matters. “Let’s structure a plan for you to donate shares gradually over a few years to manage tax implications and avoid suddenly ‘saturating’ your charitable deductions,” you say. “It is my responsibility to keep track of the AGI limits on your charitable deductions.” 

Over the next few weeks, you and John review how different giving scenarios would affect his tax picture and his portfolio diversification timeline. You also keep the Community Foundation in the loop along the way to simultaneously help John plan for charitable gifts from his donor-advised fund as the stock proceeds flow in. 

This case study has a happy ending! By the time you and John meet for the next annual review, he feels both financially and personally satisfied. He has taken meaningful steps toward reducing risk in his investment portfolio in a tax-efficient manner, and he has deepened his engagement with the community through philanthropy. And you, as his advisor, executed a textbook example of how combining tax-aware diversification and charitable giving can create a strategy that honors both a client’s personal financial goals and the client’s commitment to the community.

As always, please reach out to the Community Foundation anytime! It is our pleasure to assist in situations that involve clients’ concentrated stock positions, or any other circumstance where a client is exploring options for combining tax planning with supporting charitable causes. 

At GiveWell Community Foundation, we are honored every single day to work with many financial advisors, estate planning attorneys, and CPAs as you match your clients’ charitable goals with tax and estate planning vehicles that fit into their overall needs and plans. Often, advisors tell us that charitable giving is on the list of topics to cover during client meetings. But why exactly is that the case? Here are important reasons why bringing up charitable giving is actually as good for you as it is for your client.

Uncover client motivations
Charitable giving is one of the most effective ways to uncover what truly motivates the clients you serve. That’s because conversations about philanthropy—perhaps more effectively than any other topic—invite clients to talk about their life stories, personal experiences, and deeply held values. These topics rarely surface when discussions focus solely on portfolios, tax projections, or estate documents. Charitable giving discussions help you gain a fuller picture of what your clients want their wealth to accomplish. The Community Foundation’s professional staff stands ready to help you translate these values-based conversations into meaningful, well-structured giving strategies that align financial goals, passions and, ultimately, community impact. 

Legacy planning opportunities
Whether clients admit it or not, they likely find the notion of their own mortality to be a sobering thought. Raising the topic of charitable giving allows you to advance the conversation to include not only tax planning, investments, wills and trusts, and financial projections, but also purpose and legacy. While tax benefits remain relevant, most clients ultimately want to know that their resources are making a difference in ways that reflect who they are. Framing philanthropy as an extension of overall financial and estate planning helps clients see generosity as an integral part of their plan rather than an afterthought. Lean on the professional staff at the Community Foundation to help you connect clients’ intentions with structures and organizations that address real needs and create lasting results, including opportunities for the client’s legacy to live on for generations associated with their generosity. 

Connect with the next generation
As an advisor, you are likely very aware that it’s sometimes challenging to retain a family as a client across generations. At the same time, if you actively attempt to build relationships with children and grandchildren, your well-intentioned efforts could strike your clients as overreaching because of the high sensitivity many clients feel about disclosing details about their wealth to children and grandchildren. Philanthropic discussions, on the other hand, more naturally open the door for children and grandchildren to participate, learn, and internalize family values around generosity and stewardship. These conversations can strengthen family bonds while helping younger family members understand wealth in a broader, more meaningful context—without the need to disclose full financial details of a client’s situation. By working alongside the Community Foundation, you can facilitate inclusive, age-appropriate giving strategies that encourage intergenerational participation and help ensure that a family’s philanthropic legacy endures and, in the process, get to know your clients’ children and grandchildren so that someday they want to become your clients, too.

Deliver more value
Making charitable giving a routine part of every meeting strengthens collaboration and elevates the overall value you deliver. Of course, as a financial advisor, estate planning attorney, or CPA, you bring critical technical skills. Complement that technical knowledge by leaning on the Community Foundation’s specialized philanthropic knowledge and a deep understanding of local needs. Partnering with us allows you to seamlessly and confidently explore a variety of fund types, charitable trusts, legacy gifts, and other tools in ways that resonate with client values and maximize impact. Clients will appreciate your resourcefulness and ability to bring smart strategies to the table. Importantly, the entire Community Foundation team never forgets that your relationship with your clients is paramount and that we will follow your lead on the flow of communication as we collaborate. 

As always, the professional staff at the Community Foundation is honored to be top of mind and your first call on any matter related to charitable giving. Consider this to be an open and enthusiastic invitation to work together—helping your clients integrate philanthropy into their financial lives while reinforcing your important role as a comprehensive, values-driven planner.