Balancing immediate and long-term community needs, six tips for year end, and reasons to celebrate donor-advised funds

Hello from the community foundation! 

We hope you enjoyed the final days of summer. The team at the community foundation certainly appreciated hearing from so many of you over the last few months as you spent time with family and friends and the conversations turned to charitable giving. It was a busy mid-year as donors and their tax advisors scrambled to understand the new tax laws against a backdrop of increasing community needs.

Here’s what’s trending at the community foundation:

–Many families spend time over the holidays focusing on their charitable giving priorities. If your family is among them, now is a good time to consider how both long-term and short-term planning can be important components of a comprehensive philanthropic strategy. The community foundation can help! 

–The questions keep coming–thank you! We appreciate many donors asking our team to explain just the basics of the new tax laws, with a particular focus on what might impact charitable giving plans through the remainder of 2025. Our team is happy to provide a quick overview.

–Donor-advised funds are just one of many vehicles available through the community foundation to help you structure your charitable giving and support the causes you care about. With national DAF Day scheduled for October 9, this is a great time to review the many reasons to consider establishing your donor-advised fund at the community foundation. 

We’re honored to work with so many individuals, families, and businesses to make a difference in the causes you care about. Thank you for the opportunity to work together. As always, please reach out anytime! 

–Your community foundation

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Balancing immediate and long-term support for your favorite community causes

by Staff Name, Director of Charitable Giving

At the community foundation, we’re committed to working with individuals, families, and businesses to help make a difference in the causes you care about. Indeed, many people have at least a general idea of the community impact they’d like to achieve when they first establish a fund. If you’ve already established a donor-advised or other type of fund at the community foundation, or if you are considering doing so, you might have a list of charities and priorities as your focus. 

Our team can certainly help you achieve your charitable goals, including giving to charities you’ve supported for years, as well as introducing you to new initiatives and programs that fall within your areas of interest. Identifying recipients and goals for impact is certainly important in your philanthropy plan. 

Here’s another question that’s important to answer: How long would you like your charitable dollars to be at work? The team at the community foundation is equipped to help you with this component of your giving, too. Here are six questions we’ll consider when establishing your charitable giving plan and corresponding fund structure:

–Are the causes and issues that matter most to you likely to represent short-term, immediate community needs, or community needs that will be important for generations?

–Would you like your children, grandchildren, or other loved ones to help guide your charitable fund in the future?

–Would you like to see and experience the results of your giving now, or are you more focused on establishing something lasting beyond your lifetime?

–Are tax savings, estate planning goals, or retirement income needs part of what you’d like your charitable plan to support?

–If you’re interested in both immediate impact and long-term legacy, what portion of your charitable fund would you like to see spent down versus preserved in perpetuity?

–When you think about your charitable impact—whether in five years or fifty—what would make you feel your fund or funds at the community foundation accomplished their purpose?

As we work together to consider these questions, the community foundation team is happy to offer suggested reading to help inform your decision-making process about the benefits of each type of structure, or a hybrid. 

Many donors choose to combine strategies as they work with the community foundation to build a portfolio of charitable giving vehicles to accomplish all aspects of their philanthropy goals. Here is an example:

–A donor-advised fund to organize annual giving to favorite charities, including taking advantage of “bunching” techniques to front-load contributions to take advantage of itemizing charitable deductions.

–A designated fund to support a specific favorite charity in perpetuity, ensuring that charitable funds will be preserved even if the charity falls on hard times.

–Annual gifts to the community foundation’s endowment fund so that critical issues can be addressed in perpetuity as the community’s needs change over time. 

–Beneficiary designations on traditional IRAs and other qualified retirement plans naming both the donor-advised fund and the community foundation’s endowment fund to receive the proceeds.

Please reach out anytime. The community foundation team is here to talk with you about your favorite charities, your philanthropy values, and your goals for impact. Together, we can create a charitable giving plan that reflects your vision, whether that means lasting forever, making a difference right now, or both.

Six tips for your year-end game plan

by Staff Name, Director of Charitable Giving

With only a few months left in 2025, it is important to evaluate your philanthropy sooner rather than later. Recently-passed tax laws may throw a curveball into the financial planning strategies you’ve set in motion with your advisors. 

Here are six tips to help you and your attorney, CPA, and financial advisor evaluate whether adjustments to your charitable plan might be in order. Of course, the team at the community foundation would be honored to join your meeting for the charitable giving conversation. There are so many ways we can help! 

Check out the new estate tax exemption.

The One Big Beautiful Bill Act (OBBBA) extended or “made permanent” many favorable tax provisions, notably the elevated estate tax exemption. In technical terms, under the new law, the 2025 estate tax exemption is $13.99 million for single filers and $27.98 million married filing jointly. In 2026, these numbers increase to $15 million and $30 million respectively. You may recall that the higher exemption was originally scheduled to sunset at the end of this year, which would have caused a lot more estates to be subject to tax. This, in turn, prompted many people to lean on charitable gifts in their wills and trusts to blunt the impact of estate taxes.

Keep planning!

If you are a high net worth individual, even though the estate tax exemption is staying high, this is no time to become complacent. Although no one knows what future tax legislation might look like, we all know that there will be tax legislation in the future. Today’s tax advantages will not be tomorrow’s tax advantages. Continue to talk with the community foundation and your advisors about your charitable giving plans so you are ready to make adjustments when the laws change again.

Consider not making a change.

Above all, remember that financial motivations are not the top reason people support charities. That is certainly our experience at the community foundation. So, if you were among the people who adjusted estate plans in anticipation of the lower estate tax exemption, consider retaining the larger bequest to your fund at the community foundation or other charities. You’ll be doing a lot of good! 

2025 is important if you itemize deductions on your income tax return. 

If you itemize deductions on your income tax return, 2025 presents a window of opportunity! This is because the OBBBA increases the standard deduction in 2025. This is also because your itemized charitable deductions will be subject to a “floor” and cap starting in 2026. A technique called “bunching” could allow you to make big contributions to your donor-advised fund at the community foundation in 2025 so that you can benefit from itemizing your deductions. In turn, over the coming years, you can use your donor-advised fund to support your favorite charities.   

Stick to the basics.

Sure, a lot is changing, but a lot isn’t! Appreciated stock is still likely to be a much more tax-savvy gift to charity than cash, and it’s important to keep this top of mind. In addition, IRAs remain a powerful charitable planning tool. For instance, when you name a fund at the community foundation as the beneficiary of an IRA, the gift avoids estate tax and income tax, both of which can hit your heirs hard. 

Know the opportunities if you are 70 ½ or older.

If you are 70 ½ or older, the Qualified Charitable Distribution (“QCD”) is a great way to transfer up to $108,000 (2025’s per taxpayer limit) income-tax free to a qualified charity, including some types of funds at the community foundation. 

Please reach out to the community foundation team. We’re honored to be your first call on all things charitable giving! 

Donor-advised funds: So much to celebrate

by Staff Name, Director of Charitable Giving

Over the years, our team has talked with a lot of people who are surprised to learn that they can set up such a wide variety of charitable giving vehicles at the community foundation, including legacy gifts as well as lifetime giving vehicles such as donor-advised funds. What’s more, some people who have already established a donor-advised fund at a national financial institution don’t realize that they could have set up that donor-advised fund at the community foundation. 

Establishing a donor-advised fund is a terrific first step toward establishing a comprehensive charitable giving plan. And October is a particularly good time to evaluate the role of a donor-advised fund as part of your philanthropic strategy. That’s because October 9 is DAF Day 2025, a national celebration of donor-advised funds and the impact they make in communities everywhere. 

If you already have a donor-advised fund at a national financial institution, the good news is that it’s never too late to transfer the fund to the community foundation. You’ll be glad to know that donor-advised funds at the community foundation can carry the same tax and administrative advantages as those at national firms, including:

–Online account access and simple grant request processes

–Consolidated tax reporting and full back-office administration

–Useful as a tool for “bunching” by front-loading several years of charitable giving into a single tax year to exceed the standard deduction threshold

–Dollars in the fund support favorite charities over time, enabling strategic giving

Here’s where a donor-advised fund at the community foundation really stands out:

–Personal guidance and deep community knowledge of staff members who live and work in our region

–Close relationships with nonprofit leaders and organizations across many fields

–Tailored advice, local insights, and opportunities to collaborate with others who share donors’ interests

–Administrative fees support the community foundation’s operations, which in turn help sustain and expand services for donors and the community

If you haven't yet set up a donor-advised fund at the community foundation, we would welcome the opportunity to serve you! Here, your fund will be managed with the highest level of care, grounded in a true understanding of community needs, and supported by professionals who are committed not only to your goals but also to the health and vibrancy of our region. Together, we can make sure your charitable assets accomplish exactly what you intend—whether that means making an immediate difference, planning for the future, or both.

The team at the community foundation is honored to serve as a resource and sounding board as you build your charitable plans and pursue your philanthropic objectives for making a difference in the community. This newsletter is provided for informational purposes only. It is not intended as legal, accounting, or financial planning advice. Please consult your tax or legal advisor to learn how this information might apply to your own situation.

When to call us, philanthropy for young adults, and why it’s not about the tax deduction

Hello from the community foundation! 

We’re honored to work with so many individuals, families, and businesses to make a difference in the causes you care about. Philanthropy isn’t just about wealth—it’s about values, habits, and improving the quality of life in our community. This philosophy guides the community foundation’s work with donors across generations. We hope you enjoy this month’s insights and tips. As always, please reach out anytime! 

–You know the community foundation is a terrific resource for all things related to charitable giving. Still, sometimes it is hard to know exactly when to reach out to our team. We’re happy to share five of the many reasons you should contact the community foundation. We love hearing from you!  

–If you’re a young adult, or the parent or grandparent of a young adult, the community foundation can offer a variety of ways to get involved in the community. Making charitable giving part of the plan at an early age can be easy and very rewarding. Learn how to get motivated, get started, and get connected.

–It’s easy to get caught up in the frenzy of tax planning, especially during periods of significant change to the rules. Remember, though, that for most people, financial motivations are not the primary driver of charitable giving. At the community foundation, we are honored to experience first hand–every single day–overwhelming evidence that donors like you truly want to make a difference. 

Thank you for the opportunity to work together! We wish you a happy start to the fall season! 

–Your community foundation

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Lean on us: Five reasons to call the community foundation

In an economic and legislative environment full of unpredictability, we encourage you to tap the knowledgeable team at the community foundation–perhaps even more than you have in the past. 

If you’ve already established a donor-advised or other type of fund at the community foundation, you’re familiar with many of the ways we make charitable giving easy, flexible, and effective so that you can achieve your goals for improving the quality of life in our community as well as fulfilling your own estate planning and financial objectives. 

Not quite sure when to reach out to the community foundation? If any of these situations applies to you, drop us an email or give us a call! 

You promised yourself in 2024 that you’ll never again get caught in a year-end crunch.

The last few months of the year are always hectic with holiday activities. When you layer on the added stress of tax planning and completing the charitable giving plans you set back in January, you might tip the scales from hectic to chaos! The community foundation can help organize your year-end charitable giving early so that it achieves both your financial and your philanthropic goals.  

You’re concerned about recent drops in funding to local charities, but you’re not quite sure about what you can do to help.

The community foundation is our region’s home for charitable giving. That means we’ve got a finger on the pulse of our community’s needs and the nonprofits that are addressing them. Our team can provide information about program cuts that have left people in our community vulnerable and share ideas and recommendations for how you can help fill the gaps. 

Your tax advisor has suggested that 2025 is an important year to increase your charitable donations, but you don’t want your gifts to favorite charities to suddenly spike and then drop again.

For the small percentage of people who itemize deductions on their individual income tax returns, 2025 may indeed present opportunities. The community foundation is happy to work with you and your tax advisors to structure gifts to a donor-advised or other type of fund at the community foundation to ensure that you’re leveraging tax advantages while also maintaining consistent support year after year for the causes you care about. 

You’re thinking about selling commercial property or private business interests and you’ve heard that charitable gifts can be an effective component of the transaction if structured correctly. 

Many people do not realize until it’s too late that they can give real estate or closely-held stock to a fund at the community foundation well in advance of a future sale and achieve significant tax benefits while also setting aside charitable dollars to make a positive difference in the community either immediately or across generations. Before you and your advisors put any pen to paper on the disposition of real estate or private business interests, please reach out!  

You’re updating your estate plan and want to leave money to charity, but you’re not exactly sure what charity.

Please reach out to the community foundation anytime you are updating your estate plan or related financial documents, such as beneficiary designations on IRAs, life insurance policies, or retirement accounts. Our team is happy to work with your advisors to deploy the community foundation’s flexible tools to round out your estate plan and make sure you’re exploring the tax benefits of using various types of assets to fund your charitable intentions. 

Whatever your charitable giving situation, we are here for you! Whether you’ve already started a fund at the community foundation or you’re considering getting involved, we look forward to our conversation! 

Philanthropy is for everyone: Three tips for young adults

“Philanthropy” may sound like something reserved for wealthy, “mature” adults, but that’s not at all the case. At the community foundation, we work with individuals of every generation, from young adults to retirees and everyone in between.

Young adults in particular are getting involved in the community in ways that look a little different from prior generations. Research shows that Generation Z and Millennials tend to be more focused on issues than specific charities. Not surprisingly, a tech-forward approach to all aspects of philanthropy is common among members of these generations, including engaging with favorite causes on social media and making donations online. What’s more, a 2024 study indicates that for younger generations, volunteering and donating are strongly tied to civic participation.

If you’re a parent or grandparent of young adults, or if you’re a young adult yourself, you’ll be glad to know that the community foundation can help. Here are three suggestions. 

Make it a family affair.

The community foundation works with families to build charitable giving plans that involve all generations to achieve overall philanthropic priorities as well as coordinating with families’ advisors to achieve tax planning (subscription required) objectives. For example, a multi-generational philanthropy can include donor-advised funds, legacy plans that include IRA beneficiary designations to establish an endowment, and strategic use of Qualified Charitable Distributions for family members who are 70 ½ or older.   

Make a point to start early.

Many young adults are establishing charitable giving practices early in their careers. For example, it’s not uncommon now for new hires to name a charity, such as a fund at the community foundation, as the contingent beneficiary of an employer-sponsored retirement plan. In addition, starting in 2026, taxpayers who don’t itemize deductions can still take a tax deduction for charitable gifts up to $1000 for single filers and $2000 for joint filers. This can be a great way for younger generations to support the causes they care about. Although the deduction only applies to cash gifts and does not include gifts to donor-advised funds, it’s nonetheless a notable perk. The community foundation is happy to serve as a sounding board for ways to leverage this opportunity to make a difference.   

Make new connections.

The community foundation can help young people get connected with peer networks who share an interest in getting involved in the community. For example, our team is happy to serve as the back office for establishing what’s known as a “giving circle,” which is a type of fund that allows donors to pool resources with peers to make a bigger impact than they could achieve alone. Giving circles also provide an outstanding hands-on learning experience in philanthropy, especially because the community foundation provides education and resources about grantmaking, local needs, and nonprofit leadership. 

The community foundation is honored to serve as our region’s home for charitable giving across generations. We look forward to working with you and your family to support your favorite charities and achieve meaningful outcomes in our community. 

Tax deduction? What tax deduction?

Despite–or perhaps in light of–the recent whirlwind of commentary about new federal laws and the implications for the charitable deduction and charitable giving, it is really important keep in mind that for most individuals, the decision to give is driven by deeply personal factors–such as compassion, moral obligation, empathy, or a belief in a cause—rather than financial incentives. 

Indeed, altruism and emotional resonance, not tax breaks, are at the heart of philanthropic motivation. While tax incentives can influence giving, they typically play a supporting role—not a leading one. Psychological and social drivers are deeply powerful motivators for giving that tax considerations cannot match. 

That’s why we have always loved this article from the Greater Good Science Center and what it stands for, including our favorite points:

Generosity is truly human.

Generous behavior isn’t merely a social construct—it’s embedded in our evolutionary makeup. Researchers have found that species ranging from bees and chimpanzees to bats exhibit “prosocial” behaviors, suggesting that generosity evolved to enhance survival. In humans, acts of generosity light up the brain's reward pathways—similar to pleasurable experiences like eating or intimacy—highlighting that generosity is inherently satisfying. 

Philanthropy benefits both the giver and the receiver.

Engaging in generous acts delivers tangible psychological and even physical benefits. Volunteering and offering support—whether time, goods, or emotional aid—have been linked to increased well-being, higher self-esteem, and even delayed mortality, particularly among older adults. Furthermore, many studies reported greater happiness when spending resources on others compared to oneself.

Charitable values can be nurtured. 

It’s especially good news that acts of philanthropy are influenced by a blend of personal and social factors. Certainly empathy, humility, and moral values play a role. What’s more, cultural norms, expectations of reciprocity, and strong social networks motivate generosity, too. Unsurprisingly, people are more inclined to come to the aid of specific individuals rather than abstract causes, and generosity tends to be “contagious”—spreading through social groups and communities.

If you love supporting your favorite causes no matter what’s going on with the tax laws, you are in good company! At the community foundation, we are honored to work with hundreds of families and individuals whose giving is anchored in genuine concern for others. This in turn helps create sustainable long-term positive impact in the community we all love.

The team at the community foundation is honored to serve as a resource and sounding board as you build your charitable plans and pursue your philanthropic objectives for making a difference in the community. This newsletter is provided for informational purposes only. It is not intended as legal, accounting, or financial planning advice. Please consult your tax or legal advisor to learn how this information might apply to your own situation.

Opportunities under the OBBBA, supporting education, and charitable succession planning

Hello from the community foundation! 

Before we share the latest news and updates, we’d like to offer two observations:

First, it is our honor to work with so many families and businesses to structure and implement your charitable giving plans. What’s perhaps most rewarding to the team at the community foundation is the overwhelming sentiment among our donors that no matter what happens with the tax laws over the years, you are committed to making a difference by supporting the causes you love. Although tax benefits of charitable giving ebb and flow, your support for our community and the charities you love remains steadfast. Your generosity continues to improve the quality of life for everyone who lives here. Thank you! 

Second, August is National Make-A-Will month, which means it’s the perfect time–before the fall gets busy–to review your estate plans with your attorney and our team at the community foundation to ensure your philanthropic intentions are up to date. Even a quick check-in now can maximize the impact of your legacy and help ensure that your wishes are clearly carried out to support the causes you care about for generations to come.

Now, let’s get to it! Here’s what’s trending at the community foundation:

–2025 is shaping up to be an important year for charitable giving from a tax planning perspective. That’s because the One Big Beautiful Bill Act, signed into law on July 4, 2025, includes several provisions taking effect this year and next year that could influence the timing and structure of your donations. Learn how the community foundation can work with you and your advisors to navigate these opportunities. 

–Back to school is upon us, and this means education is on the minds of many. If you’ve established a scholarship fund at the community foundation, or if you’re considering it, please reach out to the community foundation team. We can help structure charitable support for students’ education in ways that go well beyond scholarships to help support academic and personal success.

–If you are a business owner, the concept of succession planning is nothing new. But succession planning isn’t just for business owners–it’s also important for leaving a charitable legacy. The team at the community foundation can help capture your intentions, and we make it easy to involve your family members so that the causes you care about are supported for generations to come. 

Thanks so much for all you do for our community. We look forward to talking with you soon about how you can deepen your involvement with your favorite charities. Our team is here to help.

–Your community foundation

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Navigating new laws: Opportunities for 2025

It’s more important than ever to stay informed about how changes in the tax law may affect your charitable giving. The recently-passed One Big Beautiful Bill Act (OBBBA) creates challenges as well as opportunities for structuring your philanthropy. We encourage you to reach out to your attorney, CPA, and financial advisor to evaluate how the changes in the law impact your own situation.

As always, the community foundation is happy to work side-by-side with you and your tax advisors to build a plan for 2025 and beyond that not only supports your plans to make a difference in the community, but also addresses the rule changes under the OBBBA.

To help you along this journey, we’ve provided the checklist below of issues to discuss with your advisors.

Evaluate whether “bunching” may be right for you.

The OBBBA increases the 2025 standard deduction to $15,750 for single filers and $31,500 for married couples filing jointly. The higher standard deduction will likely impact tax-motivated charitable giving, even with the expected uptick in the number of itemizers thanks to the OBBBA’s state and local tax deduction allowances (subscriptions required to the Wall Street Journal). There are important exceptions and nuances to consider, which you’ll want to discuss with your advisors. For example, if you are 65 or older, you’re eligible to receive an additional $6,000 “bonus” deduction—but it begins to phase out if your modified adjusted gross income (MAGI) exceeds $75,000.

Based on the increases to the standard deduction, you may want to talk with your tax advisors about “bunching” charitable gifts for 2025 using a donor-advised fund at the community foundation. Through this technique, you can make several years’ worth of charitable contributions in a single year to exceed the standard deduction threshold, thereby maximizing tax benefits in that year. Over the following years, your donor-advised fund can distribute grants to charities over time according to your wishes. 

Here are more reasons you might want to talk with your advisors about front-loading charitable contributions in 2025: In 2026, a new provision under the OBBBA takes effect that allows you to take a deduction for charitable gifts only to the extent that your giving exceeds 0.5% of your AGI. What’s more, if you’re in the highest tax bracket–37%--you can still only deduct charitable contributions at the 35% rate. 

The upshot here is that you and your tax advisors may decide that 2025 is the year to bunch charitable contributions to maximize tax savings. 

Get familiar with the deduction for non-itemizers, coming next year. 

If you don’t itemize your deductions, you’ll be glad to know that starting in the 2026 tax year you can claim a deduction for cash gifts to qualifying public charities—up to $1,000 for single filers and $2,000 for married couples filing jointly. Excluded from this new provision are gifts to donor‑advised funds and non‑cash gifts, which is unfortunate because those vehicles are popular, convenient, and tax-effective. Still, keep in mind the new deduction, and, if you’re encouraging your adult children to get involved in philanthropy, make sure they are aware of this deduction. It could be particularly helpful for young people because many young people do not yet itemize.  

If you are over 70 ½, review the benefits of Qualified Charitable Distributions.

A Qualified Charitable Distribution (QCD) enables individuals aged 70 ½ or older to donate up to $108,000 per year (as of 2025) directly from an IRA to eligible charities, and in the process exclude the donated amount from taxable income altogether–rather than relying on an itemized deduction. QCDs may be especially advantageous after the OBBBA’s significant increase to the standard deduction because QCDs provide a direct tax benefit regardless of whether you itemize or take the standard deduction. Indeed, using a QCD to fulfill required minimum distributions (RMDs) can lower your adjusted gross income, potentially reducing taxes on Social Security income and Medicare surtaxes, and helping you sidestep the new floors and caps on itemized charitable deductions imposed by the OBBBA starting in 2026.

The community foundation is happy to collaborate with you and your tax advisor as you explore ways to achieve your philanthropic goals under the new laws. We look forward to hearing from you! 

Back to school: Expanding support for education

It’s time for back-to-school planning! If education is on your mind, you’re in good company. Charitable giving to education rose in 2024 to more than $58 billion! If education and related causes are important to you, the community foundation can help you explore a variety of meaningful ways to make an impact. Here are three ideas to inspire a deeper discussion:

Explore options for expanding student support

In many cases, donors set up a scholarship or other type of fund to support a particular educational institution, and then set it on autopilot. There’s nothing wrong with this approach, but you might be missing an opportunity to make a deeper impact. The community foundation team is happy to facilitate a dialogue with you and the school to structure your funding–whether through a scholarship or other types of support–to fill gaps in student need. For example, if you’d like to support students pursuing a college degree beyond simply scholarship dollars, the community foundation can help identify needs for dollars to increase faculty salaries, purchase lab equipment, or pay an on-campus counselor to help students acclimate to college life. 

Investigate opportunities to improve the quality of education itself

Many donors are concerned that high school graduates are ill-prepared for post-secondary education, whether that’s a traditional four-year college, community college, or trade school. The community foundation can help you address this gap with your charitable dollars. For example, you could establish a fund to support teachers, which in turn helps improve student success. Indeed, teachers are often considered the single most important in-school factor for student success. Charitable funding that enhances teacher training, mentorship, and ongoing professional development creates ripple effects across classrooms and generations of students.

Find your education “niche”

By establishing a field-of-interest fund at the community foundation, you can work with the community foundation team to identify specific parameters within education that you’d like to fund. For example, you may  be interested in supporting local grassroots programs offering tutoring and mentorship. Or, you may decide to direct your charitable dollars to quality early childhood programs, which have been shown to yield high returns on investments in education. The community foundation can help you identify an area of focus. Going forward, our team leverages the community foundation’s deep knowledge and research to identify high-impact opportunities, helping to ensure your generosity makes the greatest difference within your area of interest.

Please reach out to our team anytime! As students head back to school and education is top of mind, the community foundation is here to make sure your giving is impactful, focused, and in line with your philanthropic goals. 

Succession planning: It’s not just for businesses

Many people think of succession planning as something only relevant to businesses or nonprofits. However, it's equally important when considering the legacy you want to leave through philanthropy—including being intentional about what happens to your donor-advised fund at the community foundation after you're gone. The community foundation team can help structure provisions for your donor-advised fund to engage your family, tap the community foundation’s expertise, or a combination of both so that your donor-advised fund can become a multi-generational legacy that reflects your values.

Here are three considerations as you consider your “charitable succession plan”:

Leave a legacy

One of the most powerful ways to extend your impact is by leaving a portion of your estate to charity—such as by naming your donor-advised fund as a beneficiary of an IRA or other retirement account. This strategy delivers considerable tax advantages and enables your philanthropic dollars to be thoughtfully distributed in accordance with your values. Remember, IRAs left to the community foundation avoid not only the income tax that would hit your heirs, but also removes the assets from your taxable estate for estate tax purposes. 

Lean on the community foundation

The community foundation is honored to serve as a trusted partner for many individuals and families. Our team can work with you and your advisors to enlist the community foundation’s expertise to make grants from your donor-advised fund according to your values and charitable intentions following your death. We can also work with you and your advisors to incorporate the ability for your children and grandchildren to serve as advisors to the donor-advised fund following your death, including taking advantage of the community foundation’s educational programs to help your children and grandchildren learn how to be effective philanthropists. 

Capture your intentions 

The community foundation team is happy to work with you to document and formalize your charitable wishes. We’ll help you articulate your priorities and outline how you envision your fund making a difference across generations, whether that means supporting specific organizations, issue areas, urgent community needs, or a combination of priorities. By helping you capture your intentions in writing and then following your wishes, the community foundation acts as a steward to safeguard your philanthropic goals and help ensure that the causes you care about continue to receive support for years to come.

We look forward to talking about succession planning for your donor-advised fund. The community foundation is honored to help you secure your charitable legacy and involve your loved ones in meaningful giving. Thank you for the opportunity!

The team at the community foundation is honored to serve as a resource and sounding board as you build your charitable plans and pursue your philanthropic objectives for making a difference in the community. This newsletter is provided for informational purposes only. It is not intended as legal, accounting, or financial planning advice. Please consult your tax or legal advisor to learn how this information might apply to your own situation.

Studying up on board service, finding purpose in retirement, and the latest on tax legislation

Hello from the community foundation! 

Thank you for the opportunity to work together! Even in a year like 2025, we’re honored to help philanthropy in our community celebrate big and little victories as we all work together to improve the quality of life in the community we love.

A bright spot in the world of charitable giving is that philanthropy in the United States reached a significant milestone in 2024, with individuals, bequests, foundations, and corporations contributing an estimated $592.50 billion to charitable causes. That’s according to the recently-released Giving USA report, citing a 6.3% increase in current dollars from the previous year, or a 3.3% increase when adjusted for inflation. 

As always, we’re happy to offer insights into trends and issues that shape the way you carry out your charitable giving priorities:

–-Many philanthropic individuals serve on the board of directors of a charity–and in many cases more than one! Learn about the factors you may want to consider before you say yes to a board invitation. As always, the community foundation is here as a resource and sounding board.

–Finding purpose is often a top priority for retirees. Carrying out your purpose requires not only planning your time, but also thoughtfully considering how to allocate financial resources, including how you might leave a legacy. The community foundation can help. 

–Tax laws remain a topic of conversation, including in conversations about charitable giving. Check out the latest updates and learn how changes might impact the way you approach philanthropy. Our team is here to help! 

Whether you’ve established a fund at the community foundation, given to an existing fund, or are just beginning to get involved, thank you for all you do to help charitable giving in our region stay strong! 

–Your community foundation

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More than meetings: Considerations for joining a board

by Staff Name, Director of Charitable Giving

If you’ve served on a charity’s board of directors, you know that the role demands much more than simply showing up for meetings. Charities benefit from board members’ active engagement, strategic oversight, and a deep commitment to the organization's mission. Indeed, board members are fiduciaries who are responsible for guiding the nonprofit’s culture, ensuring sound governance, providing financial stewardship, and acting as ambassadors and advocates in the community. Beyond legal duties, they are expected to help secure resources, oversee leadership, and contribute to the charity’s long-term sustainability and impact.

If this sounds like a lot, it’s because it is! Before you make the leap to join a charity’s board, please consider reaching out to our team. The community foundation can serve as an invaluable resource to support your decision-making process. Our professionals know a lot about local charities, including in-depth information about programs, impact, leadership, financial stability, and reputation. We’re happy to provide an impartial assessment of the charity’s governance practices, evaluate alignment with your values, and fill you in on the current needs or challenges the board is facing. 

Thorough due diligence is crucial, not only to ensure that the board position would be a good fit for your skills, interests, and availability, but also to avoid potential legal pitfalls and liabilities that could stand in the way of your ability to carry out your fiduciary duties. Our team can provide a high-level review of these duties, including:

• A duty of loyalty to prioritize the charity’s interests and avoid conflict;

• A duty of compliance to adhere to the nonprofit's mission and legal requirements; and

• A duty to “manage accounts,” which means overseeing financial stability and accountability 

These duties translate into real responsibilities for strategic planning, fundraising, financial oversight, and executive evaluation. 

Please reach out anytime. It is our honor to help you make a difference in the community we all love, whether that’s through charitable giving, board service, volunteering, or advocacy. The community foundation is your home for philanthropy in all of its many forms. 

Advancing your purpose: Considerations for a philanthropic retirement

by Staff Name, Director of Charitable Giving

If you’ve recently retired, you may still be figuring out the ideal balance of activities. If you’ve been retired for several years, you might still be trying to figure it out! Time and again, research shows us that finding purpose is an essential component of a happy and satisfying retirement. Consider the following: 

• A large-scale, longitudinal study used data from 13,770 older adults, finding that those with a higher sense of purpose at baseline were significantly less likely to develop unhealthy behaviors.

• Other research used a nationally representative panel of over 8,000 American adults and determined that, contrary to some beliefs, retirement can actually increase a person's sense of purpose. 

• A cross-sectional study analyzed data from nearly 2,000 adults and found that sense of purpose was significantly associated with lower depression and anxiety in both retirees and non-retirees. 

Indeed, retirement offers a unique opportunity for individuals to rediscover their sense of purpose beyond the confines of a traditional career. The community foundation’s team and charitable tools can play a pivotal role in this journey. Here’s how:

Check in on tax planning

For starters, the community foundation team can work with you and your tax advisors to be sure your charitable giving is reflected in your estate and financial plan to achieve the impact you’re seeking. Among other issues, we’ll help you and your advisors explore whether itemizing your tax deductions in certain years might save you money. You can “bunch” charitable donations into your donor-advised fund in higher-income years to exceed the itemization threshold, then support your favorite causes steadily over time from that fund. If you’re 70 ½ or older, we’ll also help evaluate whether tax-free transfers directly from your IRA—up to $108,000 (in 2025)—to a designated, unrestricted, or field-of-interest fund at the community foundation would be an effective planning technique for your situation. 

Involve the next generation

Many retirees have more time to include family members in their personal charitable giving activities. The community foundation team can work alongside you and your estate planning advisors to name children or grandchildren as advisors or successor advisors to your donor-advised fund and invite them to participate in site visits and educational events. This is a great way to strengthen family bonds while building a legacy of generosity across generations. Our team can help you identify ways to include children and grandchildren in site visits to favorite charities and participate in education sessions about community needs and the nonprofits that are making a difference for people who live in our region. 

Build a legacy

Many people update their estate plans just after they retire. As you work with your tax and estate planning advisors, consider incorporating a gift in your estate plan that will allow your charitable legacy to live on for generations. For example, many people name a fund at the community foundation as the beneficiary of their IRAs because of the significant tax advantages when compared with leaving the IRAs to heirs. The community foundation is happy to work with you and your advisors to establish a special fund to receive assets from your estate, whether from an IRA or other type of estate gift. The fund can be structured as a permanent endowment to address the community’s greatest needs far into the future, or even support the community foundation’s operations to ensure that philanthropy and stewardship continue to thrive for generations to come. You can also name your donor-advised fund as an estate beneficiary, and your children and grandchildren can serve as advisors to the fund so that they, in turn, can carry on the spirit of charitable giving in the family’s name. 

We look forward to working with you throughout your retirement years to ensure that your community dreams are fulfilled through the power of charitable giving. Please reach out anytime. 

Yes you are a philanthropist, making giving easy, and tax trends to watch

Hello from the community foundation! 

Lately we’ve been inspired by philanthropy in all its forms, ranging from volunteering and serving on boards to donating canned goods or giving a few dollars to a school fundraiser. Our community is full of people who care about lifting up others and improving the quality of life for everyone who lives in this wonderful place we call home.

In that spirit, we’re sharing a few updates that we hope will help you celebrate all the good you are doing and stay informed about developments that might inform your charitable giving plans.

–Everyone can be a philanthropist! Whether you give your time, talent, or treasure, the fact that you care about others is what matters. Whatever causes and charities you support, the community foundation is here for you. When the time is right, please reach out to our team to learn more about all the ways we can help you can get started on your own charitable giving journey.

–When individuals, families, and companies begin working with the community foundation, one of the most common pleasant surprises is just how easy it is. From personalized service delivered by real people who have deep expertise, to a variety of simple-to-establish fund types to meet your charitable goals, the community foundation offers a charitable giving experience that is as uncomplicated as it is rewarding. 

–There’s a lot happening on the national legislative scene! The community foundation is paying close attention to potential tax law changes that could impact charitable giving strategies. Our insights are designed to help you sort through the abundance of media coverage about proposed legislation and better understand how it might apply to your own philanthropy. 

Thank you for all you do to make our community better. We look forward to our next conversation! 

–Your community foundation 

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TRENDING TOPICS

Yes, you are a philanthropist!

by Staff Name, Director of Charitable Giving

“Philanthropist” is a big word that often conjures up images of the ultra-wealthy making big donations to charities, especially when people like Bill Gates have been in the headlines lately. But the definition is much broader than that. Merriam-Webster defines “philanthropist” as “one who makes an active effort to promote human welfare.”

Anyone can be a philanthropist. That’s certainly the spirit behind the community foundation’s mission to improve quality of life in our region.

People get started in philanthropy in many ways. Here are just a few:

—Personal experience with a charity, such as a receiving social services, mentoring, or health care 

—Volunteering for a charity, such as packing backpacks for school kids, sorting clothing at a shelter, or serving meals at a community kitchen 

—Attending community events 

—Donating canned goods for a food drive 

—Purchasing products that support a cause or school fundraiser 

—Serving in a governance or leadership role, such as on a fundraising committee or a charity’s board of directors

From there, many people take the next step to get even more involved by providing financial support, including:

—Making a donation online to support disaster relief 

—Rounding up at check out 

—Responding to online or direct mail fundraisers with a credit card donation or check

—Donating to a giving circle or other fund at the community foundation 

Along your journey, the community foundation team is here for you as a sounding board and a resource. Many people decide to establish a fund at the community foundation after several years of informal giving. A donor-advised fund in particular can be useful to organize giving to multiple charities and streamline tax reporting. 

For inspiration, consider the recently-released TIME100 Philanthropy 2025 which highlights a diverse array of individuals making a difference—from billionaires like Warren Buffett and MacKenzie Scott to community leaders, activists, and innovators who leverage their unique skills, platforms, and resources to drive change. This broad representation demonstrates that impactful giving is not limited to those with vast fortunes; anyone can contribute meaningfully, whether through money, time, expertise, or advocacy.  

Indeed, many on the list are recognized for aligning their philanthropic efforts with personal passions or areas where they can make a unique impact, such as Dolly Parton’s focus on literacy, José Andrés’ humanitarian food relief, and Billie Jean King’s advocacy for women in sports. What’s more, the rise of collective giving, strategic philanthropy, and new collaborative funding models make it easier for people to pool resources and maximize impact.

Please reach out anytime, wherever you are along your philanthropic journey. The community foundation is here to help everyone make a difference at every level of wealth and background.

“It’s so easy”: How the community foundation makes giving such a pleasure

by Staff Name, Director of Charitable Giving

As individuals, families, and businesses get more involved in charitable giving, it’s not uncommon to become overwhelmed with all the options for supporting favorite charities. Plus, it can be hard to know what really makes a difference.

The community foundation is here to help make charitable giving easy, flexible, and effective. Our team loves hearing comments that often reflect pleasant surprises when people get started working with the community foundation to make a difference in our region’s quality of life. Here are a few examples:

“We had no idea that the paperwork to set up a fund would be so straightforward. Had we known our family fund could be set up in less than an hour, we would have done it a long time ago.” 

“In this day and age of 1-800 numbers and online chatbots, it has been such a refreshing change to have a real life conversation with knowledgeable professionals. I know I can ask any question and get a fast and friendly response that goes above and beyond my expectations.” 

“We feel so good about being part of a large, diverse, local, family of giving. We love knowing that we are ‘in this together’ with other donors who are supporting their own favorite causes and it all rolls up to the collective good for our community.” 

These comments are heartwarming—and they are also based in reality. That’s because community foundations are designed to make charitable giving straightforward and impactful for donors by providing expert guidance, streamlined processes, and a high level of flexibility. 

One of the most significant ways we simplify the giving process is by handling all administrative and tax-related details. For example, when you make a single contribution of appreciated stock to a donor-advised fund to support all your annual giving, you receive a single tax receipt for the gift, regardless of how many grants are made from that fund to various nonprofits throughout the year. This eliminates the need for multiple receipts and simplifies tax reporting, making it easier for you to document deductions and keep your records organized. Additionally, the community foundation provides written acknowledgments for gifts and handles all necessary IRS documentation, further reducing the administrative burden on you and your family. 

Another key advantage is the community foundation’s ability to accept a wide range of assets as charitable gifts, including not only cash or marketable securities, but also complex assets such as real estate, closely-held business interests, mineral rights, retirement accounts, life insurance policies, and even agricultural assets. This flexibility helps ensure that you can support your favorite causes in the most tax-efficient way possible.

Whether you are considering a new gift, planning a legacy, or simply seeking advice on maximizing the impact of your philanthropy, the community foundation provides ongoing support and local expertise. We simplify the legwork so you can focus on the joy and meaning of giving and the positive difference you are making in the lives of others. Please reach out to the community foundation team anytime! 

Tax laws, what’s pending, and charitable giving solutions

by Staff Name, Director of Charitable Giving

Whether you’ve supported a fund at the community foundation, established your own fund, or are considering whether to get involved, it’s important to know that the team at the community foundation keeps a watchful eye on tax law changes that could impact your plans for charitable giving.  

You’ve probably seen a lot of news about the so-called "Big Beautiful Bill” (H.R. 1), which passed the House of Representatives by a narrow 215-214 vote on May 22, 2025. The bill now heads to the Senate, where it’s expected to undergo significant changes before anything becomes final. The main point to keep in mind is that nothing is set in stone yet, and it’s impossible to know exactly how these tax law changes might affect you and your charitable giving until the process is complete.

Our team is happy to help you think about how you might update your charitable giving plans whether or not certain provisions in the proposed legislation are enacted into law. 

For example, many people include provisions in their estate plans to continue supporting the causes they championed during their lifetimes. They like the idea of leaving a legacy to improve the quality of life in our community across generations. Next time you’re considering an update to your estate plan, please reach out. The community foundation team is happy to work with you and your advisors to structure a legacy gift that is meaningful to both you and the community you love. 

Related to legacy giving, it’s important to note that although the federal estate tax applies to a relatively small percentage of taxpayers, the impact can be significant (currently the top rate is 40%). If the total value of your assets (including real estate, investments, retirement accounts, business interests, life insurance you own, and personal property) exceeds $13.99 million as an individual, or $27.98 million as a married couple, the estate tax could be an issue for you. You’re likely aware that higher estate tax exemption enacted under the Tax Cuts and Jobs Act of 2017 (TCJA) is set to sunset at the end of this year, but under the proposed legislation, the increased exemption would become permanent. If you’re nevertheless still anticipating the possibility of a taxable estate, incorporating a gift to a fund at the community foundation in your estate plan can help reduce the tax’s impact.

Of course, people don’t give to charity just for tax reasons. Whether or not you expect to wind up with a taxable estate, the community foundation can help you achieve your goals for making a difference in our community for years to come.

Another provision in the proposed legislation that might have caught your attention relates to the standard deduction. The bill would maintain the higher standard deduction levels from the TCJA and even add a temporary increase through 2028. As a result, fewer taxpayers would itemize deductions, which means fewer people would be able to claim a charitable deduction (although most people don’t support charities solely to get a tax deduction). The bill also introduces a modest “above-the-line” charitable deduction for nonitemizers in the amount of $150 for individuals and $300 for joint filers.

Finally, the bill would sharply raise excise taxes on the investment income of large private foundations, with rates going up from 1.39% to as much as 10% for the largest foundations. Foundations with less than $50 million in assets would not see any change. Remember that the community foundation offers alternatives to private foundations, including donor-advised funds, that allow you to support your favorite charities and address important local needs.

So what’s next? The Senate is expected to start reviewing the bill in June, and the process could stretch into July or August as both the House and Senate work out their differences before sending the bill to President Trump for signature. We’ll keep you updated as this develops. If you have questions or want to talk about your charitable giving options, please reach out. Our team is here to help you support the causes you care about and address community needs in the most effective ways possible, no matter what happens to tax laws.

The team at the community foundation is honored to serve as a resource and sounding board as you build your charitable plans and pursue your philanthropic objectives for making a difference in the community. This newsletter is provided for informational purposes only. It is not intended as legal, accounting, or financial planning advice. Please consult your tax or legal advisor to learn how this information might apply to your own situation.

Charitable giving FAQs, step-up in basis, and (potentially) expanded QCD rules

Hello from the community foundation! 

If you’ve already established a donor-advised fund or other type of fund at the community foundation, thank you! It’s our honor to work with you to achieve your charitable goals. If you’re considering getting started working with the community foundation, thank you for exploring it! We welcome a conversation to learn more about the difference you’d like to make in our region, whether through lifetime giving, a gift in your will or trust, or a combination of both. The community foundation is your home for all forms of charitable giving.

Our team is committed to regularly sharing updates and information that can help you and your family along your philanthropic journey, including timely topics that are on the minds of many during the volatile first few months of 2025. 

–You may be wondering whether stock or cash is a better gift this year to your donor-advised fund or other type of fund at the community foundation. It’s smart to ask the question! The community foundation is happy to work with you and your advisors to evaluate what’s best for your own situation. 

–A lot of donors and fund holders ask our team about the “step-up in basis” and how it factors into charitable planning. It’s an especially important principle as you evaluate which assets to leave to your fund at the community foundation in your will, trust, or via beneficiary designation. Our team is happy to demystify this for you!

–If you’re over 70 ½, you’re likely aware of a helpful charitable giving tool called a Qualified Charitable Distribution, or QCD. You’ll be glad to know that recently-proposed legislation would expand the types of eligible charities to receive QCDs to include donor-advised funds. Fingers crossed! 

Thank you so much for the opportunity to work together! It is truly our honor and pleasure.

–Your community foundation 

THIS MONTH’S

TRENDING TOPICS

Uncertain times: FAQs about charitable giving

by Staff Name, Director of Charitable Giving

Economic turbulence, inflation concerns, and a general sense of financial instability have made 2025 very challenging for a lot of people. As you consider how to support your favorite charities this year, take a moment to evaluate which assets may be best suited for your donations. In particular, the choice between giving cash or appreciated stock can have a meaningful impact on both your finances and the charities you support. The team at the community foundation is here to help answer your questions, including a few that are very common this year:

Should I give stock?

If you are concerned about preserving cash right now, then donating appreciated, publicly-traded stock can be a highly effective strategy. By transferring long-term, marketable securities directly to a donor-advised or other type of fund at the community foundation, you avoid capital gains tax and may be eligible for an income tax deduction based on the fair market value of the securities. The community foundation, in turn, can sell the securities without incurring tax, maximizing the dollars available to support your favorite charities. Even in a down market, many investors still hold stocks that have appreciated over time, making this a win-win for both you and the causes you care about.

Should I give cash?

If your investment portfolio has declined significantly across the board, you may prefer to contribute cash this year. Doing so allows your investments time to recover, potentially increasing their value for future charitable gifts. Contributing cash to your fund at the community foundation allows you to organize your giving in one place, making it easier to gather tax information when April 15 rolls around next year. 

How can my donor-advised fund help in challenging times for our community?

Donor-advised funds offer flexibility for your charitable giving, particularly in unpredictable market conditions. By contributing to a donor-advised fund, you receive an immediate tax deduction and can recommend grants over time, allowing you to support your favorite organizations even when your personal finances are in flux. Many people like having a reserve of charitable funds that enables them to maintain consistent support for the causes they love, regardless of market ups and downs.

What else should I consider as I plan my charitable support this year?

Giving strategically in uncertain times is important to help stabilize the charities in our community and allow them to continue to support people in need. The community foundation can help you formalize long-term commitments while also ensuring that immediate needs are addressed. Maintaining support for the organizations you care about ensures their continued impact, even when resources are tight. 

The team at the community foundation is here to help you make a difference in our community as economic pressures mount. Please reach out to discuss the best options to achieve your charitable goals, even in a year as unpredictable as this one.

Comparing two scenarios: Why the step-up in basis matters

by Staff Name, Director of Charitable Giving

As you’ve watched the news about potential tax reform, a principle known as the “step-up in basis” might have caught your attention. Over the years, from time to time, draft legislation has proposed that this principle be changed or eliminated. Although tax law changes to eliminate the step-up in basis are not part of recently-introduced “death tax repeal” legislation, it’s still a good idea to be aware of the potential implications on the charitable giving strategies in your estate plan.

The tax principle of "step-up in basis" means that the cost basis of inherited assets will be reset to their fair market value at the time of the owner's death, effectively erasing any capital gains that accrued during lifetime. You and your advisors might have discussed this principle in deciding which assets to leave to a charity, such as your fund at the community foundation, in your estate plan, and which assets to leave to your heirs. The implications can be huge. Consider these scenarios:

IRA to kids, stock to charity

If you were to name your children as the beneficiaries of an IRA, and then provide for charitable gifts in your will or trust, your children will pay income tax on distributions from your IRA following your death. Assets passing under your will or trust, such as appreciated stock, get a step-up in basis, but if a charity is the ultimate beneficiary, it doesn’t really matter because charities are not subject to tax. Tax result? Less than ideal.

IRA to charity, stock to kids

If, instead, you name your fund as the beneficiary of your IRA, the community foundation pays no income tax. Then, any stock that passes to your children through your will or trust will receive a step-up in basis, meaning your kids can sell the stock and avoid capital gains tax on the appreciation during your lifetime. Tax result? Very good! 

Please reach out to the community foundation to learn more about leaving a legacy in your estate plan to support your favorite causes. We are happy to work with you and your advisors to maximize both the community impact and tax efficiency of your charitable gifts. 

QCDs: Soon there may be more to love

by Staff Name, Director of Charitable Giving

If you are 70 ½ and older, by now you’ve likely heard about a charitable giving tool called a Qualified Charitable Distribution (“QCD”), allowing you to direct a distribution from your IRA to an eligible charity, such as a designated fund, unrestricted fund, or field-of-interest fund at the community foundation. With a 2025 limit of $108,000 per taxpayer, QCDs count toward required minimum distributions (RMDs) but are excluded from taxable income, which can help you avoid higher tax brackets and phaseouts of deductions. 

The community foundation team is here to help you make the most of charitable giving tools, including QCDs. A frequently asked question about QCDs is whether they can be used to add money to a donor-advised fund. The answer is no–for now. While most public charities qualify as QCD recipients, donor-advised funds, private foundations, and supporting organizations do not under current law. Recently-proposed legislation, however, aims to further expand QCD eligibility by allowing distributions to donor-advised funds. 

If enacted, this change would give you and other eligible donors even more flexibility in maximizing your philanthropy. Indeed, a donor-advised fund is often the “hub” of a family’s charitable giving because it makes it so easy to stay organized and track support to favorite charities over the years. It’s becoming common for a family to add to its charitable giving “portfolio” by establishing a designated or field-of-interest fund alongside the donor-advised fund, as well as giving to the community foundations initiatives through the donor-advised fund. In many cases, family members also update their estate plans to include bequests to their funds at the community foundation.

A QCD is a wonderful tool, and we’ll keep our fingers crossed that it becomes even more wonderful. As always, the community foundation will keep you posted on this and other tax law changes that may impact your plans for supporting your favorite causes and the community we all love.  

The team at the community foundation is honored to serve as a resource and sounding board as you build your charitable plans and pursue your philanthropic objectives for making a difference in the community. This newsletter is provided for informational purposes only. It is not intended as legal, accounting, or financial planning advice. Please consult your tax or legal advisor to learn how this information might apply to your own situation.

Including charities in your plan, giving in a crisis, and celebrating philanthropy with your kids

Greetings from the community foundation! 

Spring has arrived! It is such a pleasure to hear from so many individuals, families, and businesses about how your charitable giving plans for 2025 are taking shape. If you are already working with the community foundation, thank you. If you are considering opening a donor-advised fund or other fund this year, we look forward to it!

Over the weeks ahead, consider spending a few minutes getting up to speed on trends in charitable giving and ways you can incorporate philanthropy into your life. To that end, here are three topics we think you’ll enjoy.  

–In the aftermath of tax season, many families are evaluating what they could have done differently to maximize tax efficiencies and support the causes they care about in a more meaningful way. Learn how the community foundation can work with you and your advisors to set in motion the charitable components of your financial and estate plan. 

–It’s a tough world out there! Charitable giving is such an important part of disaster relief and responses to other crises. Generous donations support much-needed assistance for people in need and can help speed along recovery efforts. Learn how the community foundation can be an important sounding board as you evaluate ways you can help. 

–Wrapping charitable giving into your family’s activities is easier than you might think, whether you’re throwing a “birthday party that gives back” or teaching your kids about budgeting for donations. Check out the community foundation’s quick tips for making philanthropy a part of your kids’ lives in easy, uplifting ways. 

Thank you for the opportunity to work together and for your continued commitment to making our community a better place for all. We look forward to our next conversation!

–Your community foundation

THIS MONTH’S

TRENDING TOPICS

Make a plan–and make your favorite charities part of it

by Staff Name, Director of Charitable Giving

At some point during your adult life, you’ve likely realized that it would be wise to put in place a will, trust, and powers of attorney, as well as undertake at least a basic level of financial planning to stay on track with retirement and other wealth-related goals for yourself and for your family. Perhaps you’re also among the many people who have thoughtfully incorporated charitable giving strategies into a comprehensive financial and estate plan.

If you’ve not yet wrapped charitable giving provisions into your will, trust, and financial plans, it’s never too late (or too early) to do so. The community foundation is happy to work with you and your legal, tax, and wealth advisors to set up charitable giving structures and processes that align with your intentions to support favorite charities and causes, as well as reinforce the tax and estate planning objectives you’ve set in motion. 

Indeed, formalizing your charitable intentions can bring a deep sense of purpose. By incorporating charitable giving into your estate plan, your values and philanthropic commitments can continue beyond your lifetime.  

What’s more, lifetime charitable giving can be part of a strategic wealth management plan, allowing you to optimize your financial resources while supporting causes you care about. For example, charitable income tax deductions for your donations may reduce your taxable income and lower your annual tax bill. Plus, donating appreciated assets, such as publicly-traded stock held for more than one year, can help you avoid capital gains taxes. In addition, dollars flowing to charities following your death can help minimize the burden of estate taxes.

The community foundation team would be honored to help you develop a philanthropy plan, starting with lifetime giving and incorporating estate gifts as your legacy intentions take shape. As you consider whether the time might be right for you to formalize your charitable giving, here are three tips to consider–all of which the community foundation can help you achieve:

Give to what you know. Most people experience the greatest joy from giving to causes that are personally familiar. Personal experience makes it easier to understand how the charity is using your dollars. So, for example, if you’ve had experience with helping foster children, you are likely to understand how the organization is using your donation to support training for foster parents. Please ask the community foundation team for insights! It’s our job to keep up with the good work of charities that are meeting local needs. 

Give where you are. Even with the increasing number of community challenges across the country and the globe, sometimes the greatest needs are right here at home. The community foundation team can help you identify opportunities to support local charities by gathering information about the overall need and how a particular charity addresses that need. When you give to local organizations, you are in a strong position to have confidence in your gift.

Give to the causes you love. Donations to charities that are aligned with your own passions make you feel the best and ultimately make the most difference because you’re likely to continue giving. The community foundation team is here to help bring your community dreams to life through the power of philanthropy. And that feels great! 

If you’ve already established a donor-advised fund or other type of fund with the community foundation, or if you are considering getting started with the community foundation this year, we are here for you! The community foundation is honored to serve as your home for charitable giving. Our team looks forward to hearing from you.

Crisis giving: Proceed with caution, but do proceed! 

by Staff Name, Director of Charitable Giving

It’s a natural human response to want to help in a crisis–even though it’s hard for many people to ask for help. Indeed, Stanford social psychologist Xuan Zhao notes that people generally underestimate others' willingness to help and overestimate the inconvenience it may cause. Asking for help can lead to meaningful experiences and often builds powerful human connections. That’s what philanthropy is all about. 

Given how we are wired, it’s easy to understand why natural disasters, humanitarian tragedies, and other crises often prompt people to make charitable donations. It’s often tempting to give to a charity without a lot of thought, both because of the emotional pull as well as the urgency of the human need presented by the crisis. But that’s usually not wise. Here’s why:

–It’s important to make sure the charity is reputable and has a proven track record. 

–It’s also important to consider that giving cash is usually the best option, even when you know the ultimate need is for food and medical supplies, for example. Cash allows charities to purchase exactly what is needed, often at a discount, and support local economies by buying from local businesses.

–You should also be cautious of high-pressure appeals that urge immediate donations without providing detailed information about what the charity is really doing. 

The good news is that the community foundation is here for you! Whether you’ve established a donor-advised or other type of fund at the community foundation, contributed to an existing fund, or are considering getting involved, our team is happy to serve as a sounding board. 

Our team can help you sort through the many options for giving to crisis relief to help ensure that your dollars make a difference. We’ll help protect your gift from fraud, help you maximize your tax benefits, strive to avoid duplication of relief efforts, and help your donations both meet immediate needs and fuel long-term recovery. 

We look forward to hearing from you! 

Many happy returns: How to help your kids celebrate charitable giving

by Staff Name, Director of Charitable Giving

If you’ve ever considered wrapping charitable giving into a child’s birthday party, you are not alone! Lots of parents are encouraging their kids to have guests bring gifts to charity instead of presents, whether it's collecting books for a children's hospital, pet toys for an animal shelter, or non-perishable food for a local food bank. Guests can feel part of something special by bringing items that align with the birthday child's interests, and the party can include activities like making cards for the elderly or packaging donations together. 

Even bigger than that, though, is the opportunity to educate your kids, starting at an early age, about charities and how every dollar can make a difference. Here are a few pointers:

Be intentional. Teaching children the value of charitable giving requires intentional strategies that blend financial education with empathy-building experiences. By including philanthropy as a regular part of your family routines and traditions, you can help your kids understand wealth as a tool for positive impact rather than just personal gain. Over time, you’ll see that this approach fosters both financial literacy and compassion for others.

It starts with money–and more. It’s often helpful to start the conversation by talking about money management and community needs, side by side. For example, you can explain how $100 might feed a family for a week, or how $1,000 could fund educational supplies for an entire classroom. You could even help your kids create a "giving budget” so they can practice ways to make their intentions visual and concrete. If you have established a donor-advised fund or other type of fund at the community foundation, log in to your account and show your kids how it works.  

Offer choices. Most kids don’t like to be told what to do (!), so it’s important to empower children by showing them how to research and pick causes that are aligned with their interests. The community foundation’s website is a great place to start. This is where kids can see the big picture of how charitable giving connects to our region’s quality of life, as well as learn about the community foundation’s priority initiatives and the nonprofits doing important work on the ground every day. 

Get out and about. Children (and adults) learn by doing, so try to find opportunities for hands-on involvement. You and your kids could volunteer together at food banks, organize neighborhood donation drives, or create handmade items for those in need. The community foundation is always happy to offer resources that will help you and your family find volunteer opportunities that are a good fit for your areas of interest and the ages of your children. 

As always, the community foundation is happy to be your sounding board as you get your family involved in charitable giving. We are honored to work with all generations of community-minded people! The future of our region depends on it, and we are here to help.

The team at the community foundation is honored to serve as a resource and sounding board as you build your charitable plans and pursue your philanthropic objectives for making a difference in the community. This newsletter is provided for informational purposes only. It is not intended as legal, accounting, or financial planning advice. Please consult your tax or legal advisor to learn how this information might apply to your own situation.

Tax tips, making your gifts efficient, and lifetime giving

Greetings from the community foundation! 

It’s our honor to work with so many individuals, families, and businesses to structure your charitable plans! If you are already working with the community foundation, thank you! If you are considering opening a donor-advised fund or other fund this year, we look forward to it!

As always, the community foundation is committed to sharing tips and insights to enrich your experience with philanthropy. 

–Tax time can be filled with to do lists and complexity. The community foundation is always here to offer simple tips and reminders about the tax rules related to charitable giving. Check out five important reminders that can help you get oriented as you gear up for this year’s filings.  

–In some cases, monthly giving to your favorite charities makes a lot of sense and can help organizations meet cash flow needs. In many cases, though, it might actually be better for a charity to receive a single gift each year. The community foundation can help you structure a giving plan that is a win-win for both you and the causes you love.

–We’re honored to work with so many individuals who have made arrangements for a gift to the community foundation in a will, trust, or IRA beneficiary designation. Many legacy donors have discovered that giving while they’re living is a wonderful way to get involved and make a difference right now, in addition to later. Learn how the community foundation can help you do both. 

Thank you for being part of the community foundation! We’re honored to be your home for charitable giving. Together through philanthropy, we can help our region thrive.  

–Your community foundation

THIS MONTH’S

TRENDING TOPICS

Just the facts: Five tax reminders for charitable giving

by Staff Name, Director of Charitable Giving

Tax time is a great reason to review the basics! At the community foundation, our goal is to help make the tax aspects of your charitable giving as easy and effective as possible. If you’ve already established a donor-advised or other type of fund at the community foundation, or if you’re considering starting a fund in 2025, it may be helpful to scan a quick reference guide of FAQs for a few of the tax rules that apply to charitable giving. 

Where charitable giving is concerned, why does it matter whether or not I itemize my deductions?

Charitable contributions can only be deducted if you itemize your deductions. If you do your own taxes, you’ll report deductions on Schedule A of IRS Form 1040. Itemization is only available if your total deductions exceed the standard deduction. For example, for tax year 2024 (the tax return you’ll file in 2025), the standard deduction is $14,600 for single filers and $29,200 for joint filers. As you look at 2025 and beyond, check with the community foundation about how your donor-advised fund can help you cross the itemization threshold while still carrying out your multi-year annual giving plans to support your favorite charities. 

If I use my donor-advised fund to make all of my gifts to charity, do I need receipts for all of those gifts?

No! A big advantage of organizing your giving through a donor-advised fund at the community foundation is that you can make a single gift of cash–or even better, appreciated stock–to your donor-advised fund, and then support your favorite charities from that fund. This means the only tax receipt you need is the one that documents your gift to the community foundation for your donor-advised fund. 

What documentation is required for me to take a charitable deduction?

Donations over $250 require written acknowledgment from the charity. The community foundation provides this for gifts you make to your donor-advised fund or other type of fund. Use IRS Form 8283 for non-cash contributions valued at $500 or more. Appraisals are required for donations valued over $5,000 (such as private stock and real estate).

How much of my income can I deduct for charitable donations to the community foundation and other public charities?

Cash donations to public charities (including your fund at the community foundation) are deductible up to 60% of adjusted gross income. Donations of non-cash assets, such as appreciated stock or real estate, are deductible up to 30% of AGI. Remember that donating appreciated assets held for more than one year to a fund at the community foundation can avoid capital gains tax; the community foundation does not pay tax when it sells the asset, leaving more money in the fund to support your favorite causes than you would have if you had sold the asset and donated the cash. 

What are the rules for IRA distributions to a charity?

If you’re age 70 ½ or older, you can make Qualified Charitable Distributions (QCDs), up to $108,000 in 2025, from IRAs to certain types of funds at the community foundation (such as designated funds or unrestricted funds, but not donor-advised funds). QCDs can satisfy your required minimum distributions. 

As always, the community foundation is here to help you achieve your charitable goals during tax season and throughout the year as you implement a philanthropy plan that meets both your financial goals as well as your goals for making a difference in the community, 

“Thanks, but …”: The hidden cost of small gifts to your favorite charities

by Staff Name, Director of Charitable Giving

Your favorite charities are grateful for your support over the years. Whether you make your gifts outright or support charities using a donor-advised or other type of fund at the community foundation, every gift makes a difference in the quality of life in our community. 

You may even care about your favorite charities so much that you strive to send over a donation every month throughout the year. In some cases, this works well for the charity, especially if its budget is particularly lean month-to-month or if monthly recurring donations are a priority for the charity’s public relations goals or other strategic reasons. It’s worth knowing, however, that in some situations, consolidating your gifts into a single annual donation is actually better for everyone, including the charity.

Here’s why:

Although recurring donations offer predictable cash flow for organizations, the processing fees and administrative burdens can disproportionately affect charities when donations are fragmented. By giving one substantial annual contribution to each of your favorite charities—whether personally or through your donor-advised fund at the community foundation—you can maximize impact while reducing operational costs for the charities.

Indeed, you might not realize the degree to which processing fees can erode small donations. Every transaction carries fixed costs, of course, regardless of size. A check, for example, can cost charities more than $3.50 to process by the time you add up bank fees, processor charges, and staff time. Even supposedly “streamlined” digital donations via credit cards and digital wallets incur fees that sometimes can add up to more than 4% of the donation amount. 

As an example, a single $100 annual gift via check might cost a charity $3.61, but four $25 quarterly donations via check could result in more than $14 in processing fees—consuming more than 14% of the donated amount! 

The direct costs associated with each check are just part of the expense. Nonprofits spend valuable resources reconciling accounts and managing donor records for each transaction. A single annual contribution can help reduce these often hidden costs, allowing charities to focus on mission-driven work rather than processing paperwork. This efficiency gain can be particularly crucial for small charities, which often operate with lean teams and tight budgets.

If you’re interested in shifting from monthly to annual giving and you’ve not yet established a donor-advised fund, you might consider doing so. A single contribution to your donor-advised fund each year allows you to claim an immediate tax deduction, and then in turn process an annual grant to each of the charities you’d like to support. This approach can help eliminate processing costs. 

For example, if you typically give a total of $1,200 each year to your place of worship and you started providing that support in a single annual transaction, such as through your donor-advised fund, instead of writing twelve $100 checks, you could save your place of worship nearly $50 in processing costs. Plus, you’ll personally benefit from simplified record-keeping with one annual receipt for the gift to your donor-advised fund rather than tracking multiple transactions. 

Whether you’re supporting local social service agencies, arts organizations, alma maters, or places of worship, consolidated giving ensures that more dollars flow directly to services rather than getting eaten up by processes and fees. What a terrific example of financial stewardship to honor both your own generosity as well as your favorite charities’ operational realities. Please reach out to the community foundation today to learn more about how annual consolidated giving might fit into your philanthropy plan. 

Giving later and now: Make an impact even before your legacy gift

by Staff Name, Director of Charitable Giving

According to the 2023 Giving USA Report released in June 2024, charitable bequests, totalling nearly $43 billion, are up 4.8% over the previous year, keeping pace with inflation. This extraordinary generosity signals the possibility of tremendous impact in our community and in communities across the country. 

We are grateful to so many of you who have chosen to leave an estate gift to the community foundation. Whether your will or trust includes a bequest to your fund at the community foundation, or whether you’ve named the community foundation as the beneficiary of your IRA, your gift will help improve the quality of life for people in our region for years to come. 

At the community foundation, we’re honored to work with donors who are not only interested in leaving a legacy, but also want to maximize giving during their lifetimes. Indeed, many donors are interested in establishing a donor-advised or other type of fund at the community foundation for a variety of reasons:

–They want to experience the joy of seeing the results of their gifts. 

–Parallel to providing financial support through their community foundation fund, many donors enjoy the opportunity to get involved, whether as a volunteer, board member, or simply an observer at site visits to charities they support. 

–They want to involve their children and grandchildren in supporting favorite charities, especially by working with the community foundation through a family donor-advised fund.

–They like the added perk that they may be eligible for an income tax deduction for lifetime charitable gifts and that the gifted assets are no longer subject to potential future estate taxes.

Please reach out to our team. The community foundation would be honored to work with you as you incorporate lifetime giving into your charitable giving plan that already includes a generous and much-appreciated estate gift to the community foundation. Thank you for being part of the community foundation!

The team at the community foundation is honored to serve as a resource and sounding board as you build your charitable plans and pursue your philanthropic objectives for making a difference in the community. This newsletter is provided for informational purposes only. It is not intended as legal, accounting, or financial planning advice. Please consult your tax or legal advisor to learn how this information might apply to your own situation.